How to Negotiate a Price for a Condominium

For people who have just graduated from college or those who are looking to downsize their living arrangements, condominiums are perfect residences. However, one thing which you should know is that condominiums come with extra costs, which are mainly association fees, including upkeep and maintenance of the property. Another important aspect which needs to be kept in mind is the lack of car parking with some condominiums. When you go out searching for your dream condo, it is advised that you look for the best available place with maximum facilities along with the location.

The first and the most important thing which needs your undivided attention is the cost trend of condominiums in your territory. You need to investigate the prices of condominiums with similar specifications in the neighbourhood. The cost of similar condos should not differ much, and if someone is quoting a considerably high price, then you would know when to walk away and refuse the deal.

Once you find the condo of your liking, it is better to get the appraisal value of that particular place and then compare this appraisal with the prices of similar condos around the locality. If the asking price is higher than the appraisal value, it gives you some room for negotiation.

You now need to make a reasonable offer on the condominium, which needs to be based on the asking price. If the condo is in top shape and the appraisal value is not much different from the asking price, then any offer which is less than 90 percent of the asking price would not be taken seriously. For example, when the asking price is somewhere around $250,000 and you make an offer of $200,000 then this will be turned down and not taken seriously. Instead, it is better that you start with $230,000 or $240,000 which will give you some room to negotiate.

It is always recommended that when your offer gets rejected, continue with counteroffers till the time you and the owner of the condo reach a mutually agreeable amount. One thing which you need to keep in mind is the fact the property owners are always willing to work with you in order to sell or rent out their property, which means that if you play your cards right there is no reason why you cannot reach a settlement with the owner. Just remember, you don’t need to be rigid with your approach, since negotiations demand compromises.