Home Selling in 60610>Question Details

Audrey, Home Seller in 60610

What are the Pros/Cons of listing/selling 1 Bedroom Condo and parking space separate?

Asked by Audrey, 60610 Fri Jan 29, 2010

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19
Ivan Sagel, ABR, SFR’s answer
Hi Audrey,

It is best to list them together, you will get a better return. When spaces are sold seperately, they sell for much less. If you haven't sold yet, the market is heating up and inventories are down. Contact me to get started.

All the best,

Ivan Sagel
312.515.7823
Ivan@atproperties.com
0 votes Thank Flag Link Wed Jan 9, 2013
It all depends on the perspective buyer.
0 votes Thank Flag Link Tue Apr 15, 2014
It's all in the marketing approach to selling your property- condo and parking. The first question is whether you are legally able to sell them separately. If the parking is not a deeded parking space then is it assigned by your association for your use whilst you own the condo? Let me know if I may be of further service on this subject matter. All the best-
0 votes Thank Flag Link Sun Mar 9, 2014
In some instances the garage cannot be separated from the condo, especially if they were originally financed together. The typical garage sells for about $30,000 and alone is not mortgagable. In other words you'd be looking for a cash buyer.
0 votes Thank Flag Link Fri Feb 14, 2014
Sell the together and you will sell them much faster and with lot more money than you would sell them independently. Otherwise your listing will address to a small portion of potential buyers!
Have your agent do a CMA and see what the neighbors are doing!
0 votes Thank Flag Link Sun Oct 6, 2013
Selling them together is more attractive than trying to do 2 sales and all the work that goes with that. I can understand that you might be thinking you could make more money, but in my opinion, you will be close to the same net result.

If you want to chat about this, feel free to reach out to me. :-) 312-480-0330
0 votes Thank Flag Link Tue Oct 1, 2013
Generally speaking it is best to bundle them together. If your buildings parking is in high demand then listing it separately is not the worst idea. Just anticipate renting it (to another resident in the building) for quite some time until you can find a buyer.

I can see how having it listed separately might make the unit list price more appealing but finding out you have to dish another 30k on a spot can leave a bad taste in buyers mouths. Plus, I find it to be misleading.

If you decide to list separately do not sell the parking before selling the condo. A majority of buyers need a parking spot; especially in high rises or areas with limited street parking.
0 votes Thank Flag Link Thu May 9, 2013
Ideally, its best to sell them together but whether or not you "list" them together depends on what the other sellers are doing in your building. If the other ones separate them out but you add yours into the list price, you may look "overpriced" when listings in your building show up on searches. Unfortunately, that could be the fine line between getting a showing scheduled or not. If you do separate them, you need to understand that the buyer then is NOT obliged to buy the parking and you may be stuck selling it on your own and there are pros & cons to that as well. If parking is high in demand in your building, its great but if not, you could get into trouble. Also check to make sure that the building will allow you to close on your unit if you still own the parking space. Many do not allow it as they have strict rules that only owners of units can own spaces so they can hold up your closing until you show that you no longer own the space or are transferring it in the unit sale. I also do not agree that you will get a better price if you list them separately because it is very common for buyers to try to "add the space" into the deal for the asking price so keep that in mind when determining your list price. If parking is high in demand in your building and the buyer does want it, then you should be able to get top dollar for it, just make sure you have enough time and/or resources to find a buyer for it. You may even want to pre-market the space before your list to see if you can find potential buyers for the space and let them know that they will be on a list in the event the buyer (always offer it to the unit buyer first) doesn't want it.
0 votes Thank Flag Link Tue Apr 2, 2013
Well of course a condo without parking is less desirable than a condo with one. I think depends of the size and location of the condo. Parking spot is key to condo resale. I dont see any advantage selling separately. Unless you live in the building and you dont have a car and not planing selling your home in the near future so you can rent out or sell your parking spot regardless of the condo. I have a client now who would like to buy the parking spot within the block or two form John Hancock building but there is nothing so close by since he live in that bulling. If you are thinking to sell the place sell it together my opinion.
Wish you the luck what ever choice you make.

Thanks,
Maja
0 votes Thank Flag Link Sun Feb 3, 2013
Audrey,

Save yourself the headache and sell them together. I've met people that have tried selling their parking spots for months and at times for years to get the price they want.

Coldwell Banker
676 N. Michigan Ave.
312-788-7079
0 votes Thank Flag Link Sat Feb 2, 2013
it is rare that someone wants to buy a unit in an area like the near north side without parking...even if the buyer doesn't need it at the time, not having parking will hamper resale. I also find it annoying that parking is almost always listed as an additional cost...i'll think i've found a unit in my buyers price range and then I'll see "parking an additional 30K" I've found that pricing my units including pkg and pricing somewhat aggresively has been a very successful strategy.
0 votes Thank Flag Link Wed Feb 17, 2010
I'll keep this real simple...if you take away the parking space you are going to only appeal to a much smaller segment of the market.

I always recommend my clients attempt to sell the unit with the parking so if someone needs if they have it available. Keep in mind, lenders no longer allow you to lump someone else's parking space in with another seller's condo so your buyer would have to pay cash for another space if he needs to buy one from someone else.

In the end, if you find a buyer who doesn't want a space then it still works out because when you sell them together you usually get less for the spot then you could selling it individually on the open market. This means you can still sell your place and then make up a few extra bucks by selling the spot to someone else.

Gold Coast parking is a pain and people always wants spots so you shouldn't have a problem.

Scott Newman
Newman Realty
0 votes Thank Flag Link Fri Jan 29, 2010
Audrey,
I personally never saw the point of listing them separately if you HAVE to sell it with the unit. The pros as everyone said is its a lower price for a buyer. But what are you going to do if you don’t sell the spot. Is parking a high demand in your building? Are you going to be just sitting with this spot for years to come trying to sell it? If you don’t mind paying the taxes and assessments then list it separately. But if do mind, make it a package deal. Price it right, and say parking included. I personally feel the whole thing is misleading. Every time I have a buyer they go "oh look at this price" (pause) "oh wait, 35k EXTRA for parking." It’s pointless and to me very tacky. I am sure a lot of agents wont agree with me, but this is my stance.Good luck!

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlamericorp@aol.com
708-250-2696
0 votes Thank Flag Link Fri Jan 29, 2010
Hi Audrey,

I don't have much to add that has not already been said but will try to simplify the answer.

1. In some buildings condos are listed with the parking shown as an extra cost in the remarks. If that is the norm in your building in order for your condo to appear competitive with other listings it is important that you list it the same way. Often the parking is listed separate but the seller will not (or cannot) sell the condo without the parking and it just becomes part of the negotiated price. When looking at sales prices you will often/occasionally see the sales price higher than the asking price and that generally is because the parking is included in the sales price. If your building does not have a habit of listing the parking separate you should not do so.

2. Should the parking have a separate listing number? In my opinion No. In many buildings there is not a market to sell the parking separate. Even if there is a market you would not want to sell the parking before the condo. You want to always have parking available for your condo sale. It is harder to sell a condo without parking especially if you are in a location where there is little or no street parking.

3. Should you sell the condo without the parking? That depends. Is there a market in your building/neighborhood for parking? Does your building allow you to sell it to an "outsider"? Even if the answer to these questions are yes, I think the best answer is to sell the parking with the condo.

So generally the reason parking is listed separately is to draw more potential buyers to see the property and to be competitive with other listings in the building/neighborhood. Of course, a buyer's agent is going to see/know that the parking is extra and it could omit the property from their search anyway.

I believe this procedure of listing parking separate started some years ago when new construction was listed that way. Once it started in new construction/conversions it stuck. Personally I don't like this way of doing things but for reasons noted above sometimes you have no choice...but remember even if parking is listed separately it should generally be sold with the unit.

If you have any other questions, please do not hesitate to contact me.

Best regards,

Sandra Matson
Certified Residential Specialist
Accredited Distressed Property Representative

Baird & Warner Gold Coast Office
Direct: 312.981.2315
Sandra@ChicagoMetroLiving.com
0 votes Thank Flag Link Fri Jan 29, 2010
In downtown Chicago, it's not unusual to list a condo and its deeded parking space separately. One advantage of doing that is it makes the price of the condo lower. However, as Tean points out, you have to be sure to negotiate the sale of the parking to coincide with the sale of the unit. You definitely do not want to sell the parking first in case the buyer wants it (most likely they will).

Another downside is - what if you sell the condo without the parking? Then you're "stuck" with a parking space you may not want. I personally don't see that as much of a problem because I like to invest in parking spaces. You want to be sure and check your assoc bylaws. Many assoc will not allow you to sell or rent the parking to someone outside of the buidling.

Gage supply of parking against demand and make a judgment as to how likely it is you will eventually be able to move the space should your condo buyer not want it. If it looks like it would be tough to move, then don't separate it from your condo sale.
Web Reference: http://mnack.com
0 votes Thank Flag Link Fri Jan 29, 2010
One thing to consider when selling the home and condo seperately is if you sold the condo first and tried to sell the deeded parking space later- how is the buyer going to get financing to purchase the space? Parking spaces are priced from 15k to 50k. Banks will not give a mortgage for such a small amount AND not too many people have this kind of cash to part with. The way around this is to offer owner financing. However, should they default, it is costly to forelcose on.
0 votes Thank Flag Link Fri Jan 29, 2010
Actually, many brokers do this for a very good reason. The condo without the parking is cheaper. Being at a lower price point you potentially get the exposure to more buyers. if you can sell the parking to someone in the building AFTER you close on the condo, its an ever greater incentive to list the condo without the parking. Just make sure you specifiy the price for parking in the listing comments. Good luck.
0 votes Thank Flag Link Fri Jan 29, 2010
Pros-The list price is less which means more potential buyers will be sent the listing by their agents.

Cons-Once they read the fine print and see that it's extra, they may ignore it becasue the total price is higher than they want to pay. The deception does not work.
In this market parking spaces are often given away when you actually see the closing price. When you break down the price.....300K unit, 30K parking for example and the closing price ends up at 290K, then what did the parking portion really cost???? It's silly.

I have never liked spliting the price. It's just deceiving and does not get more showings, BUT if most agents of similar units in the same nieghborhood/building are doing it, then I also do it. Otherwise, I use one price and mention in the Remarks that parking is included. The only exception would be IF the owner actually has the option of selling the space separate from the unit.....to a different person at a different time or just keeping the parking space and renting it out. Most condo buildings do not allow that and/or it would be dumb to do it, but I have seen situations where it could be valid.

philip
0 votes Thank Flag Link Fri Jan 29, 2010
There is nothing about listing them separately. If the condo is deeded with one parking space, you will have to separate the deed, which will cost you to do that legal work.
And then, when you put them on the market, your parking may get an offer before the condo does( I'm sure there is someone in the same building who is looking for an extra spot) And that will limited you market ability for your condo. I will definitely not recommend you to put them on the market separately.
0 votes Thank Flag Link Fri Jan 29, 2010
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