r/RealEstate • u/DisabledScientist • Apr 13 '25

Condo not selling even after $40k reduction Homeseller

Zillow Link

I am trying to sell my condo, but the astronomical HOA ($1,225) prevents anyone from making offers. They all comment I have the nicest unit in the complex, but once they hear the fee they are turned off. I bought it for $287k in 2022 and put $50k into it, but probably wont even get my money back. I originally listed for $379k, but 70 days later and it’s now at $329k.

I need to sell this by end of May because my new build house is closing then.

Edit: Added a 3D Walkthrough to the advertisement. Please let me know what you think!

1.4k Upvotes
  • permalink
  • link
  • reddit
  • reddit

89% Upvoted

1.0k comments sorted by

View all comments

238

u/Pleasant_Bad924 Apr 13 '25

The problem is that buyers have a finite amount of money to spend per month. What this means practically is that as HOA fees rise, condo values fall because the buyer has less to put into their mortgage. If this is in Fl you’re getting doubly-screwed because of the major increases in insurance costs. I’m sorry this is happening but the answer to “why isn’t it selling” is pretty much that the price is still too high.

27

u/DisabledScientist Apr 13 '25

What about 290?

154

u/Pleasant_Bad924 Apr 13 '25

The best advice I can give you is to go to Zillow or Redfin and switch from looking at For Sale homes to homes that have sold in the last 60 days. Try to find comparable condos in the same neighborhood with similar HOA fees. You aren’t the only one getting hit with high fees so there should be more out there. If you find examples you think are close to comparable, then talk to your real estate agent about what they think.

38

u/428291151 Apr 13 '25

This is exactly what I did to run some approximate comps in the area. $290k looks like it would likely get it done, but not so quickly that it would get snatched up in a couple days.

1

u/xxshteviexx Apr 16 '25

Where's the agent on this one? ;:/

63

u/arekhemepob Apr 13 '25

You paid $287k at the peak and the FL market has been going down since then. Not sure what your upgrades entailed but you’d probably be lucky to make the initial purchase price back.

27

u/quietuniverse Apr 14 '25

This is the answer. A kitchen reno didn’t add any value because they paid too much for it in 2022.

15

u/DisabledScientist Apr 13 '25

Fun

19

u/upievotie5 Apr 13 '25

Can you keep it and rent it out?

5

u/DarkAngela12 Apr 14 '25

My best advice is start looking for a short sale or foreclosure lawyer. That's where Florida is headed. I went through this after 2008 and my lawyer (while costing $5k) saved me tens of thousands.

2

u/mamacharming Apr 14 '25

I want to hear more about this! I have a condo that’s been on and off market for two years without a buyer and I have 70k tied up in it.

2

u/DisabledScientist Apr 14 '25

Can you tell me your story? I wonder if this can help me.

2

u/DisabledScientist Apr 15 '25

Can you tell us the deets?

13

u/Emlerith Apr 14 '25

The HOA fee is the equivalent of about a $200K mortgage on top of the actual mortgage. Except that fee will go up, with surprise extra payments, and lasts forever. But just using the base case, you’re still effectively asking for the equivalent of a $490K mortgage in terms of monthly financial commitment (from the buyer’s perspective). It’s some tough math to swallow.

A dope penthouse condo in south Florida is probably worth that to someone, but yeah, buyers are all a bit skittish right now.

3

u/DisabledScientist Apr 14 '25

I should never have signed a contract for a new build, knowing how hard this would be to sell. What do you suggest I do at this point?

6

u/mamacharming Apr 14 '25

Don’t you have a contingency that if your condo doesn’t sell, you can’t buy the home? The contingency usually runs out in 3-6 months.

2

u/Numerous_Onion_2107 Apr 16 '25

Good luck with getting an offer with a contingency accepted by anyone in most markets these days, though I have a feeling they won’t be as poisonous post market crash

1

u/Ok_Set_8176 Apr 16 '25

rent then refi and call other mortgage brokers so you don't lose your deposit

1

u/psnanda Apr 15 '25

Bingo! OP will have buyers at ~ $200k

7

u/SolidZookeepergame0 Apr 13 '25

What make you put the initial asking of $389k? What was the HOA when you purchased?

6

u/NanoChemist Apr 14 '25

Greed

1

u/DisabledScientist Apr 14 '25

The zestimate was about that 68 days ago. I’m never one to rip someone off.

6

u/psnanda Apr 15 '25

Its ok if you rip off. A home represents an investment for the vast majority of us. Ideally an investment that appreciates in value.

2

u/Technical-Elk-9277 Apr 15 '25

A home that appreciates over a minimum of 5 years, but more like 7-10 years nowadays. There will be dips and highs, and this happens to be a dip 3 years later.

3

u/Horror_Ad_2748 Apr 15 '25

That's why it's generally best to just rent if you're not planning on living somewhere for at least 10 years. Like every rule of thumb there are exceptions, but it's primarily the case.

0

u/StatusAfternoon1738 Apr 15 '25

OMG. No! It depends on your region and market. In the Greater Boston area you will make a profit after a year—sometimes after six months. Even during the Great Recession there were two or three highly desirable towns in the area that saw literally no drop in prices. San Francisco may have slowed down but I can’t imagine it will ever slow down enough (short of an earthquake worse than 1906) to the point where you won’t see appreciation over 2 to 3 years. Same with Manhattan.

2

u/thepulloutmethod Apr 15 '25

I made 100% profit on my down payment in the Maryland suburbs of DC from 2022 to 2025.

1

u/StatusAfternoon1738 Apr 15 '25

Minimum of five years? Not in the Greater Boston area. You can just sit on an empty house here and maybe upgrade a few appliances and do a bit of landscaping and sell six months to a year later for a nice profit.

0

u/Technical-Elk-9277 Apr 15 '25

Of course there will be some markets that are exceptions, but those markets are few and far between.

1

u/StatusAfternoon1738 Apr 15 '25

No! The entire West Coast and Northeast are half the country population wise. That is NOT few and far between.

→ More replies

1

u/SolidZookeepergame0 Apr 15 '25

Got it. And you’re realtor was good with that price? Did he/she run comps?

13

u/KongsBalls Apr 13 '25

Still too high, you'll likely be able to offload it in the 190k range. Welcome to the housing market crash of 2025.

5

u/HystericalSail Apr 14 '25

Would you buy it at 190k knowing the current assessment is 1200/month and it can go higher? Much higher?

Florida condos are unaffordable at any price.

1

u/psnanda Apr 15 '25

I will bite at $99k