Second Homes in New Orleans are Picking Up, Condos make a great choice…
January 14th, 2012 Categories: Buyers Agent, Condo Knowledge, Second Homes
The New Orleans Market is doing very well for second homes as we start the new year of 2012. The main areas of interest are the French Quarter, Warehouse District, Garden District, Lower Garden District and Uptown. Most second home buyers want two bedroom places although good number of buyers are looking at one bedrooms as well. The buyers fall int0 one of two categories…
New Orleans Connections - Buyers with connections are those that may have lived here or gone to school in the past. Many have moved away and all miss what New Orleans has to offer. They tend to look in various areas of the City of New Orleans because they know it better. Some have relatives and want to get back to visit them and their families.
Buyers Just with a love to come- I am seeing more and more buyers who have no real connections to New Orleans through family but just like to come here often. They may have come to Jazz Fest, a convention, or on business and just like it here. These are the buyers that make me appreciate what we have here.
In both these categories you tend to see people looking at the purchase as a retirement condo to spend part of the year here. Many plan to live in New Orleans for several months at a time. Some can even work in New Orleans part time and then return home between visits.
One thing most second home buyer have in common is that they have the 20% down required by lenders, will put a lot down or will pay cash for the condo. Most want a place that is carefree and has been updated. Most tend to be very picky in what they are looking for. We have to remember that a second home is a desire and they want what they want. I do see the price ranges getting higher over the last 2 years. However you can find some nice places as low as 140k in the Uptown area.
I always get asked about flooding and crime in New Orleans. The majority of the City did flood during Katrina but over 95% of the condos in the areas mentioned did not flood at anytime in the past. There is crime in the city but where you have condos the crime is not a big issue. The condos tend to be in the more expensive areas of town and are in neighborhoods where people are not interested in crimes.
The other very interesting factor is second home buyers is the length of time they look. Some take a while to purchase but know what they want. They take more time to decide before pulling the trigger. In today’s market its easy to keep clients updated with the Internet if we know about what they are looking for. I can answer the questions and send listings as they become available. The most interested do their homework and have a good idea of what they want.
The other group has been looking for a while but when I get them as a client they are ready to purchase. Most of these can weigh the pluses and minuses of each condo and make that decision.
Neither group wants to see the overpriced condos and those that fit do not fit their needs. Lately it has been very ease to get don to the best 5 properties before they start searching. Lately if they know the area it may be hard to find even 5 winners. I am still amazed at some of the deals my clients have gotten so I am never surprised. I supply then with lots of sales data so they can make an informed decision and answer their questions as honestly as I can. Visit www.nolahomesearch.net to start your search.
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Orleans Parish Property Taxes….Due by Jan 31. 2012 for the year2012…It’s in Advance..
January 3rd, 2012 Categories: Condo Knowledge, Real Estate Taxes
Orleans Parish Collects its property taxes for 2012 next month which is opposite every other Parish in Louisiana. The tax is due for 2012 by the end of Jan. 2012. The property tax rate did not go up but actually decreased slightly. For a $200,000 dollar property the drop would be $6.50. This year 67% of the properties did not go up in value which means most people will see the slight break. Others may not be so lucky as there property was reaccessed either up or down. Most Up….No surprise here.
The bills go out next week. If you mortgage company is paying your tax out of escrow then check with them in Jan. to make sure they got the notice and will be paying. If you pay and they pay it takes a while to get the money back. One of our clients did that several years ago and it took 9 months for them to get their money back.
The tax rate is now 147.5 mills per hundred thousand of value meaning if your have a property valued at 100k then you taxes are $1475 per year. If you live in the property then you get a 75k homestead exemption which you have to file for. This is statewide. If you forget to file then its gone. I did have a seller who forgot and missed it for 5 years.
The homestead exemption is worth $1106.25 so make sure to file after your purchase at the Assessors office. The value of your property will be based on your sales price.
The assessor could get your property value wrong as well. Then you will need to file an appeal. Do this as soon as you know the numbers. As agents we help our clients by documenting what we think the value is through comparisons of like properties from recent sales. This is not the norm as most people are not paying on what there property is now worth.
How would you like to be paid before you do the work a year in advance ?
Assessor’s Office- City Hall , 1300 Perido Street, Room 4e01, 504-658-1300.
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Sweat Equity in Your New Orleans Condo….
December 2nd, 2011 Categories: Condo Knowledge, Condo Listings
Often times a good way to increase the value of your own condo is to do some of the work yourself. This is building sweat equity in your condo, its increasing the value with a few work days or nights. The best way to make this happen is cleaning and painting.
Painting- Doing a professional job and choosing the right colors are the biggest factor in your success. Use colors that people will be attracted to. Get advice just to make sure. One of the biggest things that works is to show off you high ceiling and crown molding. It just gives your unit a fresh look so that you can enjoy it bit will also increase the appeal.
Save the paint for touch up as it will get scuffed.
Flooring- This may get a little more expensive but refinishing floors is not that hard or expensive with today’s tools. Most times the floor will come out lighter and much cleaner look. Getting rid of carpets in today’s market is a plus.
Light Fixtures No need to spend a fortune here. Its just nice to see something different than the standard fixtures that the developers put it. Its always noticed by buyers when they are looking.
Bathroom Mirrors- Its so easy to replace that plain mirror with a beveled frame mirror that you can now pick up from many of the home decor shops for under a hundred dollars. Its money well spent.
These are a couple of things that came to my mind while thinking of how to get things updated in a very dull condo that I have.
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Buying a condo at 4% interest rates could be better than renting…
November 27th, 2011 Categories: Buyers Agent, Condo Knowledge
Lets talk about the numbers. Lets chose some round numbers to make it easier to see. Lets look at borrowing $200,000.
Principal and Interest Your payment of just interest and principle would be $954.83 per month. In the beginning you are paying $288.17 towards your principal. This is your equity that builds up much quicker when rates are low. After two years you would have $7187.58 in equity.
The 24th month you would be paying down the equity at $311.08 per month. The amount you pay in principal increases monthly. The equity is yours to keep.
Tax Saving as interest rates are deductible If you are in the 25% bracket you will deduct $22,916 of interest in the first two years. The average saving over this period is $5729 or $238.71 per month. This is an out of pocket saving from Uncle Same. This saving goes down over time but paying down the principal goes up. Live in your condo for two years and you never pay it back.
So far the 954.83 minus the principal payments and tax savings gives you a much lower number of $427.95. Almost sounds too good to be true. It is as you do have condo fees, repairs, Interior insurance and PMI.
Expenses have to count. A higher than normal condo fee for this price unit is about $300 per month. Insurance is about $50 per month for your contents. You may pay this anyway if you are renting. Not everyone needs to pay PMI. Only those that do not have 20% down will have to pay this. Once you have 20% equity this can go away.
Adding the $300 plus the $50 to the 427.95 gives you $777.95 per month without the PMI. The PMI will vary depending on your down payment. Lets say the number is $150 per month. Your number comes back to $927.95. This does not include your closing costs or taxes.
Taxes and Closing costs- Your closing cost are a one time fee and will be less than 2% and cover some of your future cost. Taxes are going to run about 14.5 mills in New Orleans. So figure your taxes will be about $150 per month with your homestead exemption of 75k. Adding this to the other cost you get to about $1075 per month. It may be a little more or less but compare it to $1300-$1500 in rent that you would be renting for.
Appreciation and Sweat Equity will not be taken into account at this time. Buying right may get you some instant equity as well. Timing can save you money as well. Having an experienced agent can save you more that knows the markets.
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Condo Buyers “MIA”, What is a seller to do….
November 22nd, 2011 Categories: Condo Knowledge, Condo Listings
Sometimes it does not matter what the quality or price is on your condo. You are just not getting buyers into your condo. This happens from time to time and there is not to do to get them in. This is where you have to think ahead and review the latest trends. One of the best things sellers can do now is to review who you are competing against. Then you will be ready to compete well.
Figure out who you are really competiting against. Your agent can set you up to receive the new competitors as they come on the market from the MLS. Much like we do for a buyer when they start looking. I see the competition this was as well. This gives you the knowledge and feel for the market. When its time to react to an offer you will be ahead of the game.
What else can be done when buyers are scarce. Its either improve your condo or lower the price. This is a harder decision but it could be better at times to improve than to base the sale on price. Especially if the improvements are not going to cost one that much. Going in your agent should point out the negatives so you can improve. Now go back and review to see if you did the right thing.
Normally the holidays are not bad as people have time off and will be looking in this time period. It tends to happen almost every year. Buyers will think they can get a condo cheaper now and they are correct. Get in the game when few others are looking. People selling want to start of 2012 fresh and leave a worry behind. Are you leading the pack much like a race to sell……
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Cotton Mills #221, Best Buy in Warehouse District…. Its $169,221 and very nice….
November 17th, 2011 Categories: Condo Listings, Warehouse District
Just listed in the New Orleans Warehouse District at 920 Poeyfarre in the Cotton Mills. This condo is priced to sell at below $170,000 for an updated unit with great city views.
The condo is small at 520 square feet of living but seems larger with the 18 ft. ceiling and 3 very large warehouse style windows. The condo fees are small as well at $239 per month. The unit gets a lot of natural light from the second floor windows. The condo sits near the front entrance and the elevator. Its just as easy to walk down the stairs.
The Cotton Mill still remains one for the best places to buy for under $200,000 because of the amenities that it has. It got a fully stocked exercise room. An in ground swimming pool and sunning area. The large courtyards are another place to relax. Its a very secure building with 24 hour security. The condos do come with parking but street parking is available along with several adjacent lots for $125 or pay as needed.
This Cotton Mill Condo has an updated kitchen and bath with custom cabinets, stone counters, stainless appliances and new light fixtures. Its been painted to give it a designer feel. The wood floors are throughout the condo and have been refinished recently. The bedroom is larger than it looks and you have enough room for a small office and plenty of storage above the closet and bathroom. A latter has been attached to make it easy to store your items.
The views of the city and street are almost second to none. Facing the city the large windows provide a lot of natural light but no direct sun. This would make someone a great condo to start out with or a very nice second home. You can finance the purchase with an FHA loan meaning 3.5% down if you are going to live in it as your primary residence.
Once again it is rare to find an updated unit with these views and features for below 170k anywhere in the New Orleans Warehouse District..
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Cotton Mills Condos, One of the best places to buy for under 200k in the New Orleans Warehouse District.
November 13th, 2011 Categories: Buyers Agent, Condo Knowledge, Warehouse District
The Cotton Mill Condos located at 920 Poeyfarre has been the choice of many of my clients looking for the condo under 200k that has a lot of amenities. Its a large complex of 288 units spread over an entire city block. It is easily one of the places to look at and purchase for under $200,000. Take a further look on my New Orleans Condos-Cotton Mill Condos for plenty of additional photos.
I will list the reasons that over 30 of my clients have bought at the Cotton Mills. I think the values have been very consistent over the past two years. Its now actually hard to see more than one or two choices that are worth purchasing.
Lots of Amenities- You have a very nice gym with all the modern equipment and free weights. You have a full size swimming pool surrounded by tropical plants. Huge 25,000 square footage of courtyard. You have a large secure lobby.
The Warehouse Feel- You have exposed brick in every unit. Tall ceiling of at least 18 feet in most of the units. The exposed beams and wood floors add to the New Orleans Warehouse District Feel. They always feel larger than the square footage says. Most of the condos have some sort of decent view with lots of natural light.
Security- You have a secure that is manned at all times. The desk person lets in only those that should be there. Packages are delivered at the front desk for pickup. During the day you have more staff available.
Location gets better - Over the last couple of years the Warehouse District has spread out. Being a block from the World War II Museum is now a big plus. You can walk to the St. Charles Streetcar line. The Museum is a great plus for this area of the Warehouse District.
Low Condo Fees- Very moderate fees of around $240-$275 for a one bedroom. That includes insurance for the unit. That includes hot water and cable as well.
Well Managed- On site management with a manager on staff daily. The present management team is one of the best. They are very helpful.
FHA Finacing is Available- The only FHA approved Condo Association in the Warehouse District. This allows for 3.5% downpayments . This means you have to come up with $7000 and ask for sellers concessions. This is an important deal for resale value.
Easy to rent- If for what reason you need to rent your unit, it is very easy to rent. People easily pay 1300-1400 for a one bedroom condo. I see this trend will continue.
Parking is available in nearby lots for monthly parking for 100-125 per month. You can park on the street as well.
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Selling your New Orleans Condo, its a competition to get buyers to see your condo….
November 9th, 2011 Categories: Condo Listings
Its an extremely competitive real estate market in New Orleans. The condo market is as well and you are competing for buyers with the other units that are for sale. You can begin to compete better by showing off your condo in a best light with information and photos. Most shoppers start their search on the Internet. They want to see what it looks like and what is said about the unit being sold. They want to know the price, see what it looks like and what kind of updates that the condo has.
There are several ways to compete and the best is to get noticed by telling the story with the best photos and details of your condo. The more you are able to show and tell then the better off your condo my be in the eyeballs of the buyers. People have more time on line to quickly read and know.
Make sure your agent can tell the story through photos and information about the unit. People want to know and many buyers cannot be overloaded when looking for info. They can do it fast when shopping by the Internet. At the same time the agents need to be able to supply clients with the best choices available in a price range.
Photos that show off your condo- Taking enough quality photos with a wide angle lense is the first step. You want to give the buyer a feel of the condo and the features that made you buy it. Let the buyer get a feel for the floor plan, where are the windows, where is the kitchen, where is the condo in the building. The more you can show the better the response that you will get from the buyer and their agent. Sometimes I like to point out the basic feature with words on the photos as we can use 25 photos in the mls plus slideshows and videos.
Important Updates- People will look for different things so make a list of your updates. Some buyers will want to know if a new a/c has been installed lately and what type of unit it is. Some will want to know about the appliances and when were they put in. How about the floors and when were they redone. Others will ask about what stays and what goes ? Light fixtures ? Window Coverings ? Paint job? and we can go on and on. Make the list…..
Things people want to know and value People value views, parking spots, amenities, ceilings heights, exposed beams and bricks, pools, courtyards, exercise rooms, patios, balconies and much more. These are the things you do not see in the square footage numbers but boy do they count and help sell your condo. They are looking for those special things
Life Style Choices Buyers want to know about the complex and the lifestyle of the area. This can be doneas well with a combination of words and photos. What is within walking distance and what do people liek to do. Walk to the Streetcar line, walk to the French Quarter, walk to the Superdome, walk to Magazine Street and much more. What made you decide to buy where you did? Other buyers may be looking for the same thing…..
Selling in todays market is much like the show and tell we used to do in grammer school. You want to paint a picture as best you can online where we are selling 24/7. A few agents do it much better than others. You are selling to buyers and their agents. I always like to hear why you bought and why you liked it so I can get that passed on.
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1350 Bourbon Street, French Quarter condos…Kinda of quiet area…for the Beauregard House Condos
October 31st, 2011 Categories: French Quarter, New Orleans Condo Reviews
The Beauregard House located at 1350 Bourbon Street is close to the bourbon Street that we all know. It however is a very quiet neighborhood condo association between Esplanade and Barracks. Tucked away behind its brick wall it is barely noticed except for the flowers and vines that have crept over the front gate.
The condo association has 25 units with most of them being one bedroom units with the same basic floor plan of an alcove kitchen, living area and a good size bedroom. They all open to the balconies and have plenty of natural light. They surround a wonderfully landscaped courtyard and sparkling pool. The complex is three stories.
Each unit has French doors with shutters for the living room and windows in the bedroom. The units are about 525 sq. ft each. The kitchens are not large plenty of room for those who live in them on a part time basis. Its an alcove like kitchen leaving it open to the living area. Bath in the hall outside of the bedroom.
Most of the units are for second homes. Its a safe place where you can lock the door and leave for weeks at a time. You can enjoy the courtyard and then step out to enjoy what the French Quarter and Marigny has to offer. You can generally park nearby as the units have no on site parking.
There were three unit for sale this Summer and all have now sold. They were listed at 189k and 199k. One is currently under contract so the sales price is not yet known. The sales price on the others was 180k and 188k with the difference being the condition. We sold one of the units as it was a good buy for the under 200k range in the New Orleans French Quarter. A great location indeed.
There was a special assessment for the current owners so they could do some upgrades. You can always have the current owner finish up with the assessments which were due through the end of the year. The pluses were location, condition of the complex, attractive units, great common areas and competitive sizes. Just a perfect setting for a second home as the last three buyers are finding out. There was one sale in 2010 but three in 2011 with nothing currently on the market….
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Shopping for the negatives and positives of each New Orleans Condo….
October 28th, 2011 Categories: Buyers Agent, Market Trends
In ans a market where almost all clients are very picky they will view each condo they see with positives and negatives. Everyone does seem to want it all and people become less picky when the units are bargains. I tend to think that way as well as I am thinking about resale value as I go through the listings.
Some negatives can be made into positives such as paint, older appliances, light fixtures and such. Some negatives such as floor plans, no parking, odd views, high condo fees cannot be overcome. Sellers can make their unit have more positives as well. Overpricing is a huge negative and agents will just pass them buy as they do not compete as well.
I had a client call me today to see condos in the Warehouse District between 180k and 300k. I could only find four that I thought they would like to see. One they had already seen. One is not available till next week. Two that would have been a winner was sold this past week. Both were “winners” in my book and far as positives and price. That leaves two units to see. In the Warehouse District this is becoming the norm.
Business is not booming but there is not a lot of the nicer things for sale. It is a supply issue when all you can show are two or three condos. The buyers can expand their search to other areas or wait for the right one. More than one buyer will be doing this so you begin to have a buildup up in demand of the nice condos that are priced correctly and have a bunch of positives.
There have been several foreclosures this year and all three were sold in a couple of days with mutiple bids. Fannie Mae generally lists the condos 20% below market value and you take it as it is. There were several bids on each. They take the highest bid from someone who is going to live there for the first 15 days. Then investors get a shot. Very few have gotten any shots in 2011 Warehouse District.
There are other areas that are going to be like this but they are not quite there as yet. Happy Halloween ……Eric
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