Archive for the 'Condo Knowledge' Category
New Orleans Condos-Know the sellers motivation for selling! Know their timing?
June 13th, 2008 categories: Condo Knowledge
Knowing the sellers motivation for selling is great fact to know when making an offer on a condo. In general people selling condos tend to be more motivated than house sellers as the condo sellers are moving somewhere else. They do not want an empty unit and are not likely to want to rent it out from a distance location. If the seller is not local this becomes even harder. The seller may be changing jobs, getting married, finishing school , or moving to another unit or buying a home.
When is the seller moving? Many time the sellers puts up the unit before hand and will want to see what they can get for the unit. The listing agent may not want to tell the seller what the unit is worth. The longer it stays on the market the harder it is to get that buyer. People begin to wonder what is wrong with the unit and forget that it was priced high in the beginning.
Look to see if the seller got a good deal when they bought it. Sometimes the seller paid too much for it when they bought it and think they have to at least break even. This may not be the case unless its a great unit and improvements have been done. Many times a seller bought the unit as a pre-sale or got a good deal on it. its worth checking the history on the property.
Is the unit rented? Many times sellers renting have income coming in and are not that motivated. After the tenants move out, the sellers become much more motivated. Many times the tenants make it much harder to show. It may also show less well. The opposite of a staged unit is one with a messy tenant. It can make a huge difference in peoples perspective of the unit.
How long has it been listed at this price. Have previous deals fallen through? The seller is more ready the second time around. When did the unit get to the correct price?
I find people who sell that use the units as second homes tend to be on target as to the value of the unit. They are generally selling for a reason and when a fair price comes along they will be eager to take it.
Knowing what the unit is worth is the most important fact to have. This is where an experienced agent can help you with. What are the trends? What are the pros and cons of each unit. Seeing the unit through the eyes of others is a great way to look at it.
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New Orleans Condos-You can get updated daily via e-mail on new Listings! Do not miss the better Condos!
June 11th, 2008 categories: Condo Knowledge, Internet connections
You can get updates on the New Orleans condo market on a daily or weekly basis from our local MLS system. I will send you all the listings regardless of the listing company or agent. Its a great way to be kept up to date if you are looking today or in six months. The best way to have me set up the e-mail updates is to give me your parameters such as cost, bedrooms and the areas which you are interested in.
I can set this up based on what you are looking and change the parameters as we move forward. Many times people start in one area or price range and change. Just notify me and I will make the changes. It will show you when things fall into your price range and as the photos are added. The agents take the photos as when they enter them you will receive the updates. Many agents are not great at showing off the property via photos. I have seen many of this and can give you the pros and cons of the area and the complex.
Here is a sample of the link. eric condo. It is a timed link meaning it will not stay forever. It should give you a lot of basics. The real estate board will take one photo of the property which they did here and deleted the good photo which I took. This is a great way to keep you updated while I am working. If you see something that you are interested in we can talk about it or send me an e-mail so I can look up the details.
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New Orleans Condos and Home Warranties, worth the expense?
May 5th, 2008 categories: Condo Knowledge
Home Warranties are insurance policies against the mechanical failing of items and those needing repairs. Many items do break and you never know when or how they will go out. The largest expense in a condo is generally when the a/c quits working properly. This can get expensive to the tune of $1500-$1800. Many time the units cannot be repaired and they need to be replaced. Other items such as plumbing, electrical, stoves, appliances. fans, heaters can all be expensive to repair.
As an agent I write a home warranty in all my contracts asking the seller to purchase one for my clients. It will cost the seller $395 per year with a $50 deductible to the purchaser. The sellers will generally do this to have peace of mind that the items will be repaired if they break. Many items are going to be old and have no guarantees that they will last. The sellers do not want you to have added expenses once you purchase.
I ask the sellers to purchase one to relieve the purchaser of stressing over an old compressor or appliance that they fear is on its last leg. This is never a hard sell unless the seller is just plain cheap and does understand the mindset of buyers.
The purchaser can chose to renew it once the first year is up. Then you have a better idea of the condition of your condo. It has worked out well for many of my clients and many have never had to use them. The warranty company sends me cards when they use the warranty so I know they are saving my clients money.
I use First American Home Warranty not because the rep is nice and pretty but they do the job when it comes time to use them. The are established and easy to work with. I know my clients use the services as they send me a card when repairs are needed. They are always responsive to my questions and my clients needs. I have many horror stories of people who use other home warranties and are not satisfied. All home warranty companies are not created equal. Botton Line, its a nice thing to have!!!!
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New Orleans Condos, The New Orleans buyers agent, how he can help you? Much more than just Pricing ?
April 5th, 2008 categories: Condo Knowledge, Steps to Purchase
In Louisiana the agent working with you to find a condo is in effect a buyers agent for you. Choosing an agent is very important. An experienced and knowledgeable agent knows the pitfalls, upsides and various condo trends in the market. Some areas are going to be hot and some areas not. Some types are going to be slow while others much faster. Some of course are going to be overpriced. Some are going to be priced correctly.
Square footage is often overdone in determining the value of the condo. The buyers agent should be able to relate past sales with a first hand knowledge and how they compare with what you are buying. Lets sit down a coffee shop like the one below and talk about it. Lets begin our homework.
In this blog lets just concentrate on pricing. Many times the seller has a figure in mind and does not listen to his agent or the numbers. Some times the seller will take the advice of the agent and go right at the price. The seller many thinks his unit is better than the competition without ever seeing the competition. Its not what the sellers is asking that is the important number, it is what the unit is actually worth.
Pricing can be somewhat subjective but the pricing is going to be in a range depending on what has been done to the unit to upgrade it since the seller bought the unit. How it compares to the units that have just sold and are currently on the market. Things that effect pricing to look at include: Read the rest of this entry »
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New Orleans Condos and the foreclosure Market, Louisiana ranks 40th!
March 14th, 2008 categories: Condo Knowledge, Market Trends, Real Estate News
According to City Business “Louisiana was ranked near the bottom of the National Foreclosure list, a not so good list, at No. 40. The state had 650 properties with foreclosure filings, for a decline of 15.25 percent from February 2007 and a 9.72 decline from last month. “ Many of these could be Katrina related but it does not breakdown the reasons for foreclosures.
I have yet to see a foreclosure on a condo in the areas of New Orleans that I work and very few homes. There was one that was getting ready for the Sheriffs sale last August but it was pulled at the last moment. There was not a lot of speculation in this market and thus the downturn will be less. This is not to say the condo market is robust as it is not. Most of the units are holding onto gains.
Condo purchases are going to be less affected than homes in the New Orleans market as the buyers were more upscale and had large down payments, cash transactions, and very few were in the sub prime category. I only know of one unit that I sold in the last 5 years where it was a B paper loan. The person oddly enough was a mortgage orginator for a sub prime lender. He had also no business in the areas where I worked which was a good omen as I look back.
Its good to be on the bottom of some lists. Louisiana then ranks near the top in growth for 2008. Primarily due to increase in exports , high prices for oil and gas, rebuilding after Katrina and a positive effect of lower taxes compared to other states. Our new Governor is lowering taxes on businesses and making the state more business friendly. It does not hurt to have a billion dollar tax surplus which is being put into roads, coastal restoration and education. Solid principles for job growth. He happens to be a conservative Republican in a Democratic state.
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New Orleans Condo Fees, Always going up, maybe not?
March 9th, 2008 categories: Condo Knowledge, Steps to Purchase
Condo fees seem to always be increasing and since Hurricane Katrina that has been the case as insurance companies rushed to raise rates — doubling the insurance on the buildings and in some cases even more. Since Insurance is a major, major part of your condo fees, your condo fees had to go up. Now we are beginning to see quotes being lowered which means the insurance rates are coming down. This may not lower your monthly fee as other costs will continue to go up.
Many condo associations may opt to build up the reserves that may have been used for any number of reasons. Its always good to have a reserve as every insurance policy has a deductible. The trend has been to have a higher deductible. Conforming loans want no more than a 5% deductible on the insurance policy.
Its always good to check the latest business statements of your condo association to see what is being spent. If you use a lender they are sure to look to make sure certain conditions are meet. The lending rules have tightened up in the last couple of months and the rules seem to change monthly.
This is a Mardi Gras Bead Tree that tends to bloom the week of Carnival and can bloom all summer. May need fresh beads every now and then.
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New Orleans Condos, Ten Years is a long time! Time is on your side?
March 1st, 2008 categories: Condo Knowledge, Julie's Mortgage Tips
Knowing how long you plan to stay in your condo can have a big impact on your monthly note. Ten years is a long time, think about what you were doing ten years ago? The rate for 10 year fixed rate loan can be as much as 3/4 point lower as that of a 30 year fixed rate Loan. Both loans are fixed and are paid off like they are a 30 year term. Loans are figured with a risk factor and a 30 year loan is riskier than that of a 10 year loan.
Many lenders may not mention the variety of loan choices as they would rather lend you many at 6.5% rather than 5.75%. Most people stay in a home for something like 8.5 years as an average. If you look at condo the time is often less due to a number of factors that deals with the lifestyles of the people who buy. People get married, are transferred, are promoted, opt for a home, opt for another condo among a variety of reasons.
What does this mean for you? You can get a loan for 200k for 10 years at 5.75% which costs you $1168 for principal and interest. You can get a 30 year loan at 6.5% for $1266 per month. The difference is $98 per month. If you stay in your condo for five years you save almost $6000 and you could have saved that or invested it. The gap between the loan does change so the gap may be smaller or larger depending upon the interest rate markets. You should always save as time is money.
If you know your time is going to be shorter then this is definitely something to consider. How do you come out ahead? Remember rates have been moving around a lot lately so its always a must to check and ask about the fees. Eric
10/1 ARM
” The interest rate for this loan will stay the same for the first 10 years. The term for this loan is 30 years. At the end of the first 10 years this loan will automatically adjust to an adjustable rate mortgage. Usually the adjustable rate mortgage is a one-year Treasury arm. The interest rate for this loan will adjust once per year. The first adjustment may be larger than the remaining adjustments. You should check to see if this loan has a cap on the maximum it would adjust at the first adjustment. The loan should also have a cap for the maximum percentage that it can adjust each year after the first adjustment. Usually with a treasury arm loan the cap is 2% every year. You also need to check that this loan has a cap on the maximum percentage it can adjust during the term of the entire loan. Be sure to calculate your payment based on the total maximum payment your loan could ever reach. That way you will know if you can make that payment without any financial difficulty.”
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New Orleans Condos as Rental Investments. Easy Choice!
February 29th, 2008 categories: Condo Knowledge, New Orleans Condo Reviews, Warehouse District
In today’s investment market, rental properties are a no-brain-er for most of us; but condos in New Orleans are a well kept secret and a perfect solution for a part-time landlord like me.
I thought I’d share some of my reasons for purchasing a New Orleans condo as a rental property, and not all of them are “just business.” 
As a single woman and business owner, I have owned rental properties before. Over the past few years, this situation has become less and less attractive to me as an income stream, mostly because of my lack of knowledge about building and repairing these properties. I seem to spend more than I take in, simply because property upkeep is somewhat a mystery to me. Repair jobs that might be done inexpensively sometimes end up way over budget, and I had recently decided that my rental properties would be sold, and I would turn my attention elsewhere for investments in the coming years.
I changed my mind about that over New Year’s this year. I still have no desire to add more houses to my rental property list, but a trip to New Orleans, and a revival of my devotion to that unique area prompted me to look into buying a condo for myself and my daughter to use so that we could visit the city more often. Simply put, after a twenty year exile, I returned to New Orleans and fell in love with it all over again.
Our condo is a perfect situation for me. We purchased a unit at the Cotton Mills - a fun, one-bedroom fixer-upper at a great price. We are currently in the middle of a renovation, and when the unit is updated and redecorated, we will then have a rental that solves many of the problems I experienced as a landlord.
First, the upkeep on the building itself is not my problem. My condo dues (under $200 per month), take care of insurance and any structural problems with my condo. I am responsible for the little things that might go wrong inside the unit, but any wiring, roof trouble, building structure problems, or property damage to the building are taken care of by the association. I no longer have to concern myself with lawn care or worrying about the security of my property, since all these things are included in the services provided by the condo association.
The second bonus for me is that the low interest rate I have secured on the mortgage this year will enable me to enjoy a very low payment, allowing me to rent the property and make a profit immediately. My unit will pay for itself, and should be easy to rent to the many out-of-towners who come to New Orleans for work and play. I also understand that medical students at Tulane enjoy the convenience and privacy of a condo off-campus, so the rental market is active and profitable.
It’s not all business, though. One of my favorite things about this arrangement is the fact that the condo, when not rented, is going to be a great getaway from northeast Louisiana. I’ll get to spend days on end walking the French Quarter, loving the random-ness of life on the streets of New Orleans, and volunteering wherever there is need, in the Hurricane Katrina rebuilding efforts.
Over the last month, I’ve been delighted by the welcome we’ve received as “new neighbors” in the building. Everyone in New Orleans is so friendly, and it reminds me that this city is not just a municipality, it’s a neighborhood. It’s one of the few places I know of that still enjoys the old arrangement of shop proprietors living above their stores, and I am loving the fact that I can walk almost anywhere I want to go from my Cotton Mills location. Excellent shopping, as always, is a real plus in the city, and there are so many attractions near the Warehouse District, I can hardly decide what to do every day.
We’re enjoying the “spruce up” process so much that I’ve decided to begin looking for more units next year. If “location, location, location” is the real secret to success in real estate, we’ve definitely got the best of all worlds in this rental property, and the more we visit the city, the more I remember why I am addicted.
The next condo we buy may be to live in!
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Warehouse District Condos, Pet friendly? Pets Allowed?
February 24th, 2008 categories: Condo Knowledge, Warehouse District
The New Orleans Warehouse District condos and lofts are very pet friendly. I cannot think of a single complex that does not allow pets. There are going to be limits as to size and the numbers you can have. The condo documents will spell this out as to the types and sizes of the dogs. This is for insurance purposes mainly. There will be leash regulations in all of the units. There are tons of people that walk their pets daily as there are a number of nearby downtown parks or neutral grounds. Rarely do you see dog mess so people do take care with there pets.
Pets in New Orleans are part of your family. The rules change when you get to Uptown New Orleans where some complexes do not allow dogs. Always good to check first on what the basic rules are so you will not be disappointed later in the process. The MLS sheets should say what is allowed but never the less ask to be sure what the rules are. Some will allow cats but no dogs.
This is a photo of Baxter and Bootsie who are my sons dogs who are currently in Houston but are looking to returning to New Orleans sometime in the future.
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New Orleans Condos, Who manages your condo?
February 21st, 2008 categories: Condo Knowledge
In many of small New Orleans condo associations the owners themselves manage the complex by electing members to certain positions. However size does not determine how it is managed. Many small associations do hire management companies to take care of the repairs, Insurance issues, paperwork, bills, upkeep and much more. As the complexes get larger there is so much work to do that the association has an on site manager that either they hire or are placed there by a management company. Many ciations that have residents that are busy, hire management companies to take care of the day to day problems that arise. The condo boards then oversee the management companies work.
There are few associations that hire and manage there own such as 700 S. Peters does. Most use management companies where they can draw on the resources and bargaining power of the management companies. They may not be on site but manage several properties.
The small conversions are generally going to be run by the members themselves and handle the various duties between the members. If you are a second home owner you may want the managed concept to know the business in handled by a professional. This may even be the case if you live there. It cost extra but may be cheaper in the long run.
New conversions and new condos are run by the developers until a certain amount of the condos are sold and a certain amount of time passes. This is spelled out in the condo documents. Upon getting a contract accepted you will able to read the rules, regulations and condo documents.
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