Is it Harder to Sell a Condo than a Single-Family Home?

You may be thinking that owning a condo will make it harder to sell when that time comes. New Orleans condos offer a great choice for buyers of all kinds. Whether you want a low-maintenance home, something more affordable or a second home in New Orleans, condos offer a great choice.

Of course, when you’re considering buying a condo, you may be worried about the resale. It’s a common question real estate agents receive, is it harder to sell a condo than a single-family home? To answer this question, we must look at a few factors.

Your Homeowners’ Association

A condo is only as good as the HOA. The HOA will charge a monthly fee for each unit to maintain the common areas, provide a master insurance policy for the condo building, handle trash removal and cover the cost of maintaining any amenities. Sometimes, this fee will also cover the water and electric for the building.

The HOA fee will play a huge role in the resale process as buyers will use it to determine whether they can afford the condo or not. Lower fees may seem good, but they can make the HOA will not have enough funds to keep up the property. However, a higher fee could make the condo harder to afford.

Each HOA must also maintain reserve funds, which the buyer’s lender will review when they consider whether or not to approve the loan. Any pending lawsuits could keep buyers from getting approved. A high percentage of renters could also be a problem.

Location, Location, Location

Of course, the location of the condo will play a factor in resale, as well. If you have a condo in one of the highly sought after areas of New Orleans, such as the French Quarter or Warehouse District, selling it will likely be much easier. Condos in less desirable areas may not sell as easily, however.

Affordability

Those choosing to buy a luxury condo may struggle to sell quickly. However, luxury condos do sell; they just tend to sit on the market longer than an affordable condo. Often, first-time homebuyers will start with a condo they can afford to get started as homeowners. However, luxury condos are attractive to those looking to use the condo as a vacation home or those looking to live the luxury lifestyle.

Overall, condos are not harder to sell than a single-family home as there are plenty of buyers looking in New Orleans. However, they are a bit different and the HOA will make it easier or harder to sell your New Orleans condo.