A con­do­minium is a type of own­er­ship, not a structure

Brought to you by the Insti­tute of Char­tered Accoun­tants of Ontario

If you’re plan­ning to sell your condo, con­sider spend­ing some time, and yes, money, prepar­ing for the process. Mak­ing small improve­ments and hav­ing all the infor­ma­tion and paper­work ready-and-waiting makes it eas­ier for poten­tial buy­ers, and that can pay you back in sig­nif­i­cant offers.

Char­tered Accoun­tant Joe J. Marchello is Direc­tor of Finance for Coun­try­Wide Homes, a builder and devel­oper of res­i­den­tial real estate in the Greater Toronto Area, and its affil­i­ate Con­dor Prop­er­ties, which devel­ops and man­ages indus­trial, com­mer­cial and office prop­er­ties. Here, he shares six tips to help ensure you get the most value from the sale of your condo.

It’s not just about the build­ing – A con­do­minium is a type of own­er­ship, not a struc­ture. Condo own­ers share a lot, and first-time buy­ers don’t always under­stand the full impli­ca­tions of the arrange­ment. In build­ings over five-years old, for instance, util­i­ties are not usu­ally metered sep­a­rately. So, all own­ers share in the costs, regard­less of indi­vid­ual use.

Pick up a copy of the by-laws and sta­tus cer­tifi­cate – Would-be buy­ers should know the spe­cific rules gov­ern­ing life and behav­iour in your par­tic­u­lar condo com­plex, and any details con­cern­ing the sta­tus of the prop­erty. Smart sell­ers can request both the by-laws and the sta­tus cer­tifi­cate and have them ready to share with prospec­tive buy­ers or agents to pre­vent hold-ups and the offer being finalized.

Work with what you can – The colours of the lobby, the land­scap­ing and the car­pet in the party room are things you can’t con­trol. But new, energy-saving appli­ances, updated bath­rooms and fresh paint in the kitchen will help improve your condo’s appeal and value.

Know the mix – Be pre­pared for buy­ers’ ques­tions, like who’s on the corporation’s board of direc­tors and how many units in the com­plex are rented out. Own­ers are legally bound to advise the prop­erty man­ager if they’re rent­ing out their unit, so this infor­ma­tion should be read­ily available.

Con­dos attract a dif­fer­ent type of buyer – Smart sell­ers play up the aspects most likely to appeal to those who already want the lifestyle. Focus on the free­dom from main­te­nance and lawn work, the ameni­ties and the fact that the cor­po­ra­tion insures the major struc­tural aspects of the build­ing. Stress the access to pub­lic trans­porta­tion, any retail­ers on site or close by, and the fact that you can lock the door and leave on vaca­tion with no wor­ries about tend­ing the lawn or garden.

Sub­stan­ti­ate the fees – Con­dos are non-profit enter­prises, but many buy­ers will still need help under­stand­ing and jus­ti­fy­ing the monthly main­te­nance fees. Have the corporation’s annual bud­get avail­able, as well as up-to-date infor­ma­tion about the reserve fund. Let buy­ers know what the his­tory has been with respect to spe­cial, one-time assess­ments, and how likely these are to take place in the future.

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Con­tact the Jef­frey Team for more infor­ma­tion  -  416−388−1960

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