CONDO BUYOUT - ASK FOR MORE DUE TO MARKET CONDITION?
 

Hi All - I am in a very fortunate position where the condo I live at will be bought out entirely and my units at 2x what I paid for it in Sept 2021.

Its an 8 unit townhome property on the water in south Florida in one of the most sought after neighborhoods. The property is a total of 8 units, where 6 are owned by a total of 3 investors and are rented out, and the other 2 being owned by individuals that actually live there and is their primary residence, of them being myself.

I bought my home at a 2.75% mortgage rate. Given myself and the other person will have to re-purchase with the current interest rates and situation, I was thinking of asking for more than the investors to compensate this. Investors will simply pocket the money, while I would be put in a situation to have to rebuy in unfavorable terms.

Do you agree with this? And what would be a decent/ fair premium to an equal offer price to all units.

Thanks
[{"id": "iqnmzs3", "text": "Whatever a buydown costs, on your current condo to get your current rate, would be fair, but you also have relocation costs, and the fact that you aren't even interested in selling (which you aren't becsuase if you were, your condo would be on the market).  \n\nAnother problem you are going to have, if you go to sell, you better hope on cash buyers because any condoplex with &gt; x percent of investor/rentals is going to be a problem, so that limits your buyers, and the fact that it's a condo whacks the LTVs, and we're in a declining market, so that's another possible whack.  But if it **is** as nice and desirable as you say it is, maybe it doesn't matter.", "replies": [{"id": "iqnnch6", "text": "&gt;fact \n\nThe condobuy would be for redevelopement - so the person that buys it would be a developer. I would never sell it in the open market because it would not be worth nearly as much. \n\n&amp;#x200B;\n\nThe relocations cost is would justify me to request more for my unit vs the other investors.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iqnsva1", "text": "This is a common trap that sellers in your situation fall into. Your relocation costs, recent renovations, mortgage rate differentials etc... only factor into your decision to sell, they do not factor into the market value of your property. \n\nYou can decide that any of those factors makes it unreasonable to sell for anything less than a certain price, but don't make the mistake of thinking that a developer is going to change their valuation of the site (and your proportion of it) based on your situation. \n\nThat's not to say there's not room to negotiate but you're better off getting representation or an appraisal done if you're worried about leaving money on the table. That will be the best way to approach a price negotiation with the buyer - not describing your challenges finding a new place.\n\nAlso for what it's worth most markets are declining in value so the longer you drag this out, the higher the chance the developer reduces their offer or walks.", "replies": [], "depth": 1}, {"id": "iqnuwah", "text": "No that is not fair. Your personal situation has nothing to do with the investment", "replies": [{"id": "iqrexw1", "text": "This.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iqojkfm", "text": "You may not have a choice. Some HOA docs cover the dissolution of the HOA via a sale of the units to an entity that seeks to redevelop and if X percent of owners approve your unit is automatically included. You need to review your HOA docs and Florida condo law. That said with housing prices now dropping and after Ian's psychological impact on Florida ocean front RE you may find a deal that makes the interest rate less impactful. Plus you can refi in a few years if rates drop back down.", "replies": [], "depth": 1}]