Would you accept?

[Maya]

We have a potential counter offer coming through on our condo. Have to decide if we should accepts or not. Would you based on the following?

We bought the condo, new construction for 178 k.
We had the plan modified to add an office space which has a window, heating, electrical but no closet, though there is room to add one without taking space from the small room (8*8.5).
We always considered it a 2 bedroom + office, but our neighbour bought her identical unit (few minor differences so her's looks a little nicer) for 274 k 4 years ago as a 3 bedroom unit.

It is definitely debatable if it counts as a 3 bedroom unit, neighbour's agent thinks it is, ours doesn't. Her agent suggested selling price of 300k, ours thinks 260-265k

We currently have tenants in it till June 1.

We listed it for 279 k and have an offer now for 268. A similar 2 bedroom (no office and 1 floor lower, but upgraded bathroom) sold for 269 and that is what we are being compared to.

Would you accept or wait it out?
Would a better option be waiting till tenants leave and staging it properly? Updating the paint? Or sell it now and avoid the hassle.

I like having it and enjoy the income, but we are planning a cross-country move in 18 months and it's hard to sell if your tenants aren't leaving, because laws make it difficult to terminate leases.

[Another Reader]

If the buyer that will pay the highest price is an owner-occupant, it's better to wait until the tenants leave June 1st, and spend the few dollars necessary to add the closet, paint, and stage the unit.  Then ask a higher price for a three bedroom unit that can be occupied at close of escrow.

[James]

I don't see any reason to accept the offer, hold firm.


How long was it on the market before the offer? (You said potential, not sure what that means?)


Is the office space extra? Or just divided differently from the 2 bedroom?


Seems like you started low. If your comparable sold for 269, I would assume you are hoping to get the same. Knowing absolutely nothing more than what you said, I would hold out for asking price. You have until June, so no hurry.

[Jack]

What does your rental cash flow look like? If it's profitable, then waiting helps you. If it's not, then waiting might get you a higher sale price, but the profit could get cancelled out by your carrying costs.

Also, IMO 8x8.5 is too small to count as a bedroom, except somewhere really crowded like Manhattan.

[Maya]

It's located in a dense neighbourhood in montreal. Other three bedroom unit is listed don't even have a window or proper entrance.

Cash flow on the condo is great and carrying costs are about $700/month if it's vacant so not bad and doable.

We've been on the market 2 weeks and had about 12 visits. Most of the comments is that it's a bit run down due to the tenants... Honestly the tenants have kept it in really good condition, I think it just doesn't show as well as an owner occupied apartment would due to staging.

[Calvawt]

If the cash flow is working, I would wait until the tenants move out.  Then clean up, paint, add a closet, and stage.  List as a 3 bdr and ask a higher price!


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