New Orleans Condos, The New Orleans buyers agent, how he can help you? Much more than just Pricing ?
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:
1. What did the seller pay for the unit ? How long has he owned it ? Did he get a good deal when he bought it? We know the markets gains or losses in general and in a condo association in particular. The more recent the sale the better.
2. Sellers Motivation to sell ? Is it a second home ? Is it a job transfer ? Has the person just finished school ? How long has it been on the market ?
3. Did the seller buy it as a pre-sale as many people got instant equity in the complex ?
4. What is the pricing trend for that particular condo complex is important ?
5. Are the condo fees too high or they can also be too low to cover the correct items ?
6. Do the views, floor-plan, parking, updates,location with the complex increase the value of the unit ? All these factors will have a variable, but many units were sold on a size basis meaning some units of the same size are better than others.
7. What has been done to the unit since this owner has owned the property ? Was the work done in a professional manner ? Very important. Has the size of the unit changed ?
8. Has the location improved ? Is there more competition for this type of unit ? Why has the unit not yet sold ?
9. Have the amenities been improved upon and are they now what people want ?
10. What type of people live in the complex and in general what do they do ?
My focus on value really looks at resale value. To date I have never had a client lose money in over 430 sales. Condo buyers do move more often than homeowners. More on that later. Timing can also be another huge factor. In the period where fewer people look you can generally get a better deal. This is usually in Oct. thru Jan.