Buying or selling an apartment is a substantial investment and it pays to do your homework thoroughly to get the best price for your property. Getting the most out of your apartment sale or purchase simply requires some preparation, research, and knowledge about how the market works in your area. Check out the guide below on how to get a good deal when buying or selling an apartment.
Buy Resale Condos
Buying a resale condo is one of the best ways to get the most value for your money and an outstanding investment return. This is because resale condos usually cost 10% less than a brand-new unit. For example, if you are looking for an 800 sq. ft. condo in the heart of downtown with two bedrooms and two bathrooms, you can expect to pay about $600,000. If you want to buy a brand-new condo in the same area, then expect to pay at least $800,000. There are many benefits that come with buying resales:
- Easier Financing – when you purchase a resale, they are already 2 years old which means they have established market value and selling prices.
- Flexibility – when buying resales it’s easier to make changes like knocking down walls or changing layouts.
- Reassurance – resales already have warranties and the risk of major construction defects is low.
Know the Real Estate Cycle
Timing is everything when it comes to property investments, especially if you want to make the right choice and get the best deal when buying or selling an apartment. It’s vital that you know which way the market is going and that you know when possible good deals are around. This will give you a strong advantage because it’s always better to buy when prices are low rather than when they have reached their peak.
In general, property prices increase gradually for about six months, stay stable for three to six months, then start falling over the next several months before bottoming out in one year or so. You should aim to be buying your property just before a price drop occurs instead of waiting too long and getting a bad deal.
Be Flexible with Your Needs
When looking for an apartment, keep in mind that it pays to be flexible. If you can find a suitable apartment by being willing to compromise on the location, size, or suite amenities, you will have a much easier time finding an apartment that you can afford. Don’t be too picky because being flexible will not only give you more options but will also save your money in the long run.
To illustrate this point, let’s say you found a perfect three-bedroom condo in the city with two parking spaces and an amazing view of the lake for $700,000. Unfortunately, your budget is limited to $600,000. You should be prepared to adjust your search criteria because there are other areas within that price range that might give you equally good value for money. Look for similar properties in different locations or even smaller units if necessary.
Before you even start looking for your dream apartment, make sure you are prepared with all the legal proceedings. Consult a real estate lawyer beforehand to find out everything you need to know about buying or selling an apartment. This is because the process of buying or selling apartments can be quite complicated and it pays to have someone who will guide you through every step of the way. The right legal representation should also ensure that your interests are protected during negotiations.
When choosing a real estate lawyer, you should look for someone who is experienced in this field. To find the right lawyer, conduct an interview with several lawyers to see who can best represent your interests. You should also try getting referrals from friends or family members who have bought or sold an apartment before. If that is not possible, ask your real estate agent for some recommendations instead.
Find Qualified and Trustworthy Property Managers
If you’re buying an apartment as an investment and intend to rent it out, hiring qualified property managers is very important to ensure that your investment continues to grow rather than dwindle each month due to vacancy or late rent payments. When searching for the right property manager, look for someone who has been in this business for several years and offers the security of their own guarantee.
When buying or selling an apartment, there are a few things you can do to get a good deal. Look into resale properties. Be prepared with your legal documents. Find reliable property managers who have been in the business for several years. Finally, be flexible on the location, size of your unit, and amenities.