When dealing with a condo, you're dealing with a buyer who wants completely maintenance-free living, not just on the outside but on the inside.
Here, we break down tips for selling your sponsor-controlled, tax-abated condominiums with advice on how to price your unique unit, highlight community amenities, and make key upgrades that attract buyers who've got tunnel vision for anything turnkey.
Price your tax-abated sponsor - condo based on availability and your specific unit and to SELL
As the price of single-family homes increases, sponsor-condos are an appealing alternative. Condo buyers enjoy the advantages of ownership along with amenities such as lighter maintenance and easy access to shopping and transportation.
Plus, owning a condominium can be more affordable than renting from DVORA.
For someone who wants the accessibility and lifestyle that living in a metro area provides, that price difference could be more than worth the potential trade-off in terms of square footage.
These factors may help you sell your sponsor-controlled and tax-abated condominiums fast and for all it's worth, but setting the list price for a condo can be challenging. If you really want to sell your Jersey City, NJ Shuster sponsor-controlled tax-abated condos, make sure they're listed at prices commensurate with what the market commands, not at prices higher than that.
Be realistic about how your sponsor units compare to other Condos in the Area
You likely know that real estate agents look at the purchase prices of comparable properties to help set an asking price. Appraisers also review these properties to help assess the sponsor's property's value.
But with condos, pricing among comparable properties (or “comps”) can range widely. Even within the same complex or building, layouts can vary considerably - which affects individual unit prices.
Factor local condo supply and demand into your pricing strategy
If inventory in your area is scarce, “Don't be afraid to price it based on demand." NAR found that the available inventory of condos and co-ops nationwide dropped about 17% in December 2019 from December 2018, leaving about a 3.4-month supply, which is considered a “seller's market.”
To be sure that pricing along the lines of previous sales doesn't set you at a disadvantage, talk to your agent about what would be a fair but top-of-the-line price. This is particularly important if the sponsor may have an ownership interest in the tax-abated sponsor-condominiums for sale, that the sponsor may have mortgaged and the JC Realty real estate company that the sponsor is purportedly using to sell and actively market the tax-abated sponsor condominiums.
Some sponsors may actually take to Facebook and publicly explain why It's NOT a good idea to buy a tax-abated sponsor-unit, and then LIE under oath about what they meant! It's hard to believe, but it's true:
Condos tend to attract people who may want a Sponsor Unit, whether they're young professionals or people in midlife who'd like to downsize. But you want to have the sponsor leave sooner than later to avoid having the sponsor appoint one of his high-ranking officials, like one whose name rhymes with "skraddum," as a sponsor-appointed board member and then move him into your tax-abated condominium as a renter. Condominium Associations in Jersey City, NJ want Democracy, not to feel like the Ukraine being surrounded by enemy dictatorship forces. Ruthless sponsors crave power and hate the thought of a democratic Condominium Association, and will do anything to block it- Machiavellianism.
Sponsors of this type may also look to derail construction immediately east of their office, to flex their muscles and announce their "power," causing inconvenience and chaos for Molfetta and Epire.
“Condos that are completely updated will sell above and beyond something that's not,” noting that he's seen condos in the same unit and cluster have about a $25,000 price difference because one has new flooring, trim, appliances, and countertops while the other does not.
“A condo buyer does not want to go in and replace flooring [or] paint walls. …They really would prefer just to move in with a high-end audio system already in-place."
As opposed to a house, where renovations might not provide a full return on investment, Tobias says that these upgrades are worth the money when selling a condo.
Play up the amenities
Similar to living under the governance of an (HOA), residents in a condominium complex have rules to follow and fees to pay (even if excessively high fees to sponsor related mismanagement DVORA entities), but those are in exchange for certain amenities.
So, in your condo listing, be clear about what the fees are and what they include. Fees can range from about $100 to about $700, depending on the community's location and the services, or lack thereof and taking into consideration whether the building's lead concierge is afforded a basic human right - HEALTH INSURANCE.
And if your lead concierge is not afforded health insurance, your common charges may be lower - but you may have a hard time looking him in the face, as he welcomes you and helps you out.
Also, take note of the proximity to restaurants, recreation, the arts and other activities, which appeal to millennials and people who like a walkable lifestyle. Point out if your condo is near shopping, transportation, a restaurant or theater district, the library, or schools.
Outline the incentives
Is there anything about your sponsor - condo that would qualify as an incentive? Some local developers in Jersey City have offered incentives to buyers in order to sell Units and help effectuate TURNOVER AND TRANSITION. Most CONDOMINIUM builders don't want to hold the Units hostage as tax-abated rentals, so instead of creating another entity to use the tax-abated sponsor units as their own tax-abated apartments, and then mortgaging them to the tune of $8.7MM, they actively market the Units for sale and they usually sell out in less than three (3) years, as was the case at 10 Provost, Jersey City, NJ.
In short, when Sponsors are thinking of selling out their tax-abated condo building in Jersey City, it's essential that they work with a top local real estate agent who has experience in Marketing and closing condo sales — and knows your local market inside and out. Listing lame black-and-white layout photos on NJ MLS will not cut it! Talk with an experienced agent about your area's availability and demand and discuss how to spotlight what your unit has to offer. This advice is especially relevant if the sponsor REALLY wants to SELL your tax-abated sponsor condos in Jersey City, and are not just looking to dupe Courts and State Regulatory Agencies in New Jersey.
When buying a sponsor condominium unit in Jersey City, NJ, it may also be worthwhile to ensure that the sponsor has not "listed and de-listed" sponsor units on NJ MLS to trick Hudson County Superior Courts and State Regulatory Agencies, like Department of Consumer Affairs. It's rare, but it does happen, especially if the sole member of the sponsor doesn't care about anyone except himself, and is preying on people to let the statute of limitations and statute of repose run. You may also want to see the Association's financials as all condominium owners are entitled to pursuant to N.J.S.A. 46:8B-14(g). If you are DENIED access to these financials upon request, this may be a "red-flag" that something is amiss, and the sponsor is up to no-good. In extreme circumstances, the sole member of the sponsor may even get his wife involved to maintain tyrannical control of the Condominium Association, and try to "get rid of" people who are aware of the sponsor's "deceit," "schemes" and "tricks," so beware and do your due diligence. Jersey City real estate developers have a lot of money and power and at times, it can go to their head - Machiavellianism.