What do I do When a Condo Complex Gets a Bad Rep?

I work in a seaside resort, actually the Nation's Oldest Seaside Resort: Cape May, NJ. A lot of my buyers and sellers are involved in Condo Complexes. There are two main reasons some people here prefer condos:

1) It is a little more affordable and hassle free to own a condo as a second home or vacation property as opposed to a single family,

2) The way Cape May is situated, unless you want to spend $2 Million or more on a Big Beach Front home, the only other Beach Front option is a condo.

That being said, most complexes have average turnover and even though some value has been lost since the height of the market in 2006, they are still selling........except one.

I represent sellers in the Sandpiper Beach Club. This complex was completely renovated in 2006 and is one of the best run complexes in Cape May. These 1 and 2 bedroom Units have Ocean Views, top of the line finishes, and great amenities such as a pool, and fitness center.

Sounds great right? Well the problem is that most of the people in the Complex bought in the height of the Real Estate Boom and had no intention of holding on to the Units Long Term. Now they have to realize that they will probably have to take a 20% hit on that "great investment" they had. But even the owners who have come to realize that still cannot sell their units, why?

The complex has gotten an undeserved bad rep.

1) The complex is run as a "Condo-Tel" which some of you will say is the start of the bad rep. But this complex has very little restrictions and is run better than most Hotels.

2) The management fee scares people away. The complex charges 42% of all rentals.

So here is the problem I have. In one case I have alone bedroom unit in the Upper $400,000 range. That unit brought home $16,500 AFTER MANAGEMENT CHARGES. Yet people say that it is priced too high because of their "perception" that the fees kill your income potential.

Really?????? Then why did another unit in a complex 6 blocks off the beach, in an older building, with half that income just sell for $480,000?

I'm stumped and am determined to change the perception about this complex. Real Estate is an emotional decision sometimes and as a Realtor we are supposed to be able to keep emotions out of it. This is a case where I think the Realtors are the ones who have allowed emotions to cloud their judgment and I am going to make sure that my clients get a far shake.