Archive for October, 2009
French Quarter Markert Update! Prices are all over the spectrum! Buyers Market?
October 28th, 2009 categories: French Quarter, Second Homes
The French Quarter Condo prices are all over the place for a number of reasons that I have been able to put my finger on. Most of the real estate sold in the French Quarter are condos so I will concentrate on that market with this update. It all get back to slack demand for the price that people are asking.
French Quarter Market Update- This will give you what is currently for sale and what has sold in the last 3 months in the French Quarter in condos. Its shows 114 for sale with, 14 currently under contract, 14 sold condos over the last 3 months. Click to get a detailed update form the Market Snap Shot which is available to you by filling in the basic info. I can get it far more refined if you would like me to do it.
Why are the prices all over the place!
Second Homes- Many of the condos in the French Quarter are second homes. Less second homes are being bought in general due to the economy. Many second homers want to sell but do not have to sell. They have the units priced incorrectly. Comparisons are harder in this segment or the sellers are stubborn with pricing.
You have various motivations for owners wanting to sell. Some have to sell and become more reasonable quicker. Many have been of the market for a while and sellers begin to see the real value in their condos. They finally see prices are declining and decide to sell and move on.
Strong rise in prices in 2003 and 2004 You had a real estate bubble with people buying condos with great appreciation during those years. Some buyers got good deals but many buyers did not get so lucky. The early buyers have more equity so can still sell with a profit.
Competing locations in New Orleans You now have more areas that compete with the French Quarter. The Uptown area, the Warehouse District and other areas are getting the attention of buyers who once only looked in the French Quarter. This puts pressure on the average condo. The premium units will always fare better.
Nature of the Condo Associations Many of the condo association have not kept up with the necessary updates and repairs that they should have. This may be because most of the owners do not live in New Orleans. With that said there are a number of very well run associations.
Number of Updated Units A lot of the units are in need of updating. Today’s are passing these up for the premium units that have been updated. The units that need updating have not priced that into the asking price. Some of the best buys are those that need cosmetic updates such as bad floors, lighting and colors. Spending 5k to 10k can get you equity if you are willing to take the chance.
Size of many Condos Many of the condos on the market are just too small. They are more like a motel room. These have quickly fallen out of favor.
Financing on New Units The new developments are having a hard time getting conventional financing unit a certain number are sold. To do other wise is to pay cash or a much higher interest rate.
The values are there but you have to cull through many units to find the correct one. Its all in the timing of finding what you are looking for and what currently is available. All these issues however make it great for a Buyers looking to be in the French Quarter.
People are starting to notice as properties that meet their needs are reaching prices that are affordable and much cheaper than a couple of years ago. Get a good Buyer’s Agent and do your homework in advance.
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The Pre-Market approach to listing your New Orleans Condo. Make sure its all working! You only get to make a First Impression Once!
October 20th, 2009 categories: Selling your Condo
The New Orleans Market is very competitive for a seller in a Buyers Market. There are a couple of thing you can do and should do before putting your condo on the market. Making sure it looks great and putting everything is in order will put your condo in the Driver’s seat to getting sold. I have come up with some ideas that are not the norm but will enhance the marketing of your condo. You may have some to add?
Pre- Marketing Inspection Before listing have an inspector review your condo. I have people who will do it for $175 and may save you in the long run. He will check all the basics and give you a report so you can fix the things that need fixing. The buyer will get their own but you know your unit is in good shape.
A/C-Heating Serviced- Most people forget to have their units serviced on a regular basis. If you have not done this recently then do it before marketing. It will give you peace of mind that one of the biggest mechanical expenses is taken care of. Have the receipt handy and change the filters. Buyers like to know that people take care of the place.
FHA Financing Available? Can your condo association be sold as an FHA loan. It opens up the doors to more buyers who only need to put down 3.5% and have a much lower PMI premium. The manager can look over the approval questionnaire to see if all the questions can be answered. The Rules change in November of 2009.
Paint is Cheap is cheap! You want to touch up and dress up. Your condo is going on a date and needs to look her best. Touch up and freshen up is simple but rewarding. Getting a professional job done can be the answer. Nothing looks worst than a job poorly done.
Professionally Cleaned ! Sounds simple but a lot of sellers forget. You should do to do it on a regular basis to get the premium status. The cluttered look may eliminate you from the race early on. People smell as well as look so any smoking or pet odors is a big turnoff.
Get an Appraisal If you do not have faith in the numbers that your agent is giving you then you should get an appraisal. The agent and the appraiser will be using the same properties. You can often get a break in the cost as this will not be official. The lender for the purchaser will have to get another no matter what.
The Reluctant Tenant! This is a factor that cannot be understated. Let’s just be honest! Tenants have little incentive to get the place sold and very few add to the positive impression. Its an agents nightmare to get a messy tenant that cannot show when needed and keeps the place a mess. This is a factor in all price ranges and in all areas. There are few exceptions!
I continue to see sellers not getting the basics done. In the end it will take longer and you will get less. So take the steps to get your condo in premium shape for the big date ahead.
You only get to make that first impression once. Spend some time and money to get as close as you can to a premium unit. In a slow market those condos are still selling.
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New Orleans Secondo Home buyers. A condo should fit the Bill! More areas getting Notice!
October 17th, 2009 categories: Second Homes
The purchase of a condo is the best way to go for a person wanting a second home. It is a place where you can shut the door and leave. The insurance is much lower and is in the condo fees. For larger condo associations the daily, weekly and monthly maintenance issues are taken care of for you.
Some of the changes I am seeing over years past is that people are looking in several areas. The French Quarter was once the most popular spot for second homes. Now other areas are doing well.
Warehouse District - Its across Canal Street and a short walk to the French Quarter. The condos are generally cheaper, newer, larger and the projects are larger. Many have amenities such as gyms, pools, security and large courtyards. You can find this for under 200k.
French Quarter- Prices are falling and pricing is rather erratic. There are some good buys to be had especially in the under 250k range. Still very hard to get parking included. Willing to do a little updating and you can do even better.
Garden District- Becoming popular as historic homes and buildings have been converted into condos. The most popular for future value is the historic conversions where you still have a feel of the old home with wood floors, high ceilings and large windows.
Uptown Area Condos- A wide variety of condos exist with prices ranging from 150k and up. Being between St. Charles and Magazine is the hot spot in an historic condo conversion.
University Area Condos A built in demand for Tulane and Loyola students where the parents can enjoy the condo as a second home. The historic condos are selling very well in this area as long as they are updated.
Lakeview by the Lake Beginning to see more action in this area as well. Its very close to downtown and if you like the water and outdoors you are in luck. Prices are down but not a lot of supply. Your small community that has everything. Happy Sailing !
Financing a second home is still easy and the rates are around 5%. The demand was down and now see more and more people starting to look. Some want to winter here and leave the snow behind. Not everyone has to go to Florida. Shop and Sleep, then enjoy eating and drinking.
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New Orleans gets good Press! We are a little different! Our Weather is Great Now!
October 14th, 2009 categories: Art , Music , Parks
This is a copy of a recent article that puts New Orleans area in a positive light. I think America is actually discovering us and figuring out we can have a good time by spending little money.
NEW YORK (Reuters Life!) – Looking for romance? Head to Honolulu. But if you are single, like live music, boutique hotels and want a wild weekend, New Orleans is the city to visit.
In its latest survey of America’s favorite cities Travel and Leisure magazine asked readers to pick the best places for everything from the most attractive, intelligent, stylish and the friendliest people to where to find the best museums, restaurants, bars, museums and affordable hotels.
“The big news this year is that New Orleans received the most number one rankings over New York,” said Travel and Leisure Assistant Editor Stirling Kelso.
“It is a popular weekend destination. You can go to New Orleans and feel like you have left the country,” she added.
The city known as the “Big Easy” also came out tops for people watching, singles scene and the metropolis with the best bars and concerts and bands.
“In the nightlife category, New Orleans beat Las Vegas. Last year New Orleans swept all of the night-life categories and New Orleans did this year,” Kelso added.
Miami topped the charts for the most attractive people, followed by San Diego and Charleston but southern charm seemed to come into play with Nashville, New Orleans and Charleston having the friendliest folks.
New York was the U.S. city with the most stylish residents with Miami and San Francisco and Los Angeles also coming up with high marks.
But when it comes to most intelligent Minneapolis/St. Paul took the crown, followed by Austin and Boston. The twin cities also scored top marks as the cleanest city.
The results were based on an online survey of more than 60,000 people who rated 30 U.S. cities in various categories. Five new cities, Providence, Kansas City, Cleveland, Houston and St Louis, were added to the survey this year.
Washington D.C. was the top choice for best museums, galleries and historical sites, with New York, Chicago, Philadelphia and Boston also in the top five.
“In regards to culture, Washington D.C. and New York really tied in that category. New York got the No. 1 ranking for classical music and theatres, and Washington D.C. did for historical sites and monuments and museums and galleries. It was a nice East Coast tie,” Kelso said.
For more sedate family fun, Orlando, Florida was the top choice with Washington D.C. coming in second, and San Diego third. If money is a consideration, Cleveland scaled the chart for best affordable getaway.
New York may have bowed to New Orleans in the nightlife ranking but it was still scored top marks in a category considered important by many — shopping. Read the rest of this entry »
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Still a Buyers Market in New Orleans Condos!
October 13th, 2009 categories: Buyers Agent, Condo Knowledge
When I say it is a buyers market it means almost everything favors the purchaser in this market at this time. All the factors are lining up to be in your favor. You can enjoy the negative sentiment and buy condos much cheaper than anytime in the last 5 years. Still have to be selective !
Seasonal Discount- You can always buy cheaper this time of year as less people are looking. it happens in the good and bad years.
Sellers getting Weary- Sellers who were asking to much have now begun to finally know they were too expensive. Buyers passed them by as well as agents. The listing is now stale. Much better buy now !
Very Low Interest Rates- 4.875% is a great rate. The U.S. is forcing rates low in hopes of getting the hosing markets and banks moving. The rates otherwise only make sense to the buyers. $538 per 100k borrowed
Condos Below building Cost! Some developers are dumping their unit to raise cash. They are out there. Its mostly at the lower end of the market. Great buys for a second home.
Sellers need Cash Owners of second homes may just need to sell. We have been seeing this mainly in the French Quarter as some sellers just want out. Be on the lookout for better deals.
FHA Loans are still Here! Owner occupied condos only. 3.5% down for accepted condo associations. Much lower mortgage insurance rates and seller can pay most of your closing costs.
$8000 tax Credit almost gone- Its good till November 30, 2009. That’s a gift of $8000 for the taxpayers.
Seller Concessions- Just need to ask for reasonable things and it can be worked out. Paying closing cost, leaving furniture, ect.
Lenders are not Busy- Stay local and be the center of attention! All the new rules will add time to the deal. Start early and get the process started.
Condo Fees are Level - The Katrina Insurance costs are working their way out of the system. The high rates are fading.
Property taxes are down 29% over 2008 in New Orleans- This favors the new buyers. Taxes are deductible on your State and Federal taxes.
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New Orleans Condos-Penthouse Condos- Federal Fibre Mills Designer Condo goes to the head of the class. 1107 S. Peters #507
October 8th, 2009 categories: Condo Listings, Warehouse District
In the New Orleans Warehouse District there are a small number of penthouse condos. Not all of them are great units or have great views. This new listing does have great views, great common areas and is move in designer quality. It was actually a “Design Winner”. Many times they are very expensive. This penthouse condo is only $399,507. My definition of a penthouse is a top floor unit. There are exceptions but this is a general rule in the New Orleans Warehouse District.
In New Orleans downtown where there is seldom new construction so the penthouses are built on top of existing buildings. This is the case with this unit #507 but it has a little twist. The condo has the 5th floor in the original pre-1900 building and then the build out on the roof done for the New Orleans 1984 Worlds Fair. You get a touch of the true Warehouse District feel along with an open living area. You get the best of both worlds, new and old, you can say.
This is a condo that I listed this week at the Federal Fibre Mills that is a penthouse Condo. The Views are some of the Best in the New Orleans Warehouse District but the pluses do not stop there for unit #507 located at 1107 S. Peters. It is unusual in a number of ways. It is a townhouse style unit on two levels. The living area and kitchen are on the terrace level while the bedrooms are down.
The upstairs is on the penthouse level or roof top level with a very open floor plan. This large room opens to your terrace with great city views day and night. This is an entertainers delight with all the designers touches. The kitchen has been totally renovated, New appliances, new light fixtures, new floors, 2 new french doors to the terrace.
The downstairs features the old “New Orleans Warehouse look” with high ceilings, wood floors, large windows, exposed brick, exposed beams, and a master suite. Everything on this level has been upgraded including the bathrooms, tub, floors, vanities, fixtures and much more.
Best to just watch the slide show and take a look for your self. Need more information just ask or comment. I have more photos and information on my New Orleans Condos Website. Its under featured properties. The photos are good but seeing this unit is the better way to go to get the big feel with the natural light.
These are some previous articles on the Federal Fibre Mills-
Federal Fibre Mill Condos, Common Areas grade an A Plus! Common Areas are part of your values!
Warehouse District Condos, The Federal Fibre Mills Condos and Lofts remains popular !
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New Orleans Condo Foreclosures. Can they be good buys!
October 7th, 2009 categories: Condo Knowledge
There are not a lot of New Orleans condo foreclosures in this market at this time but they are beginning to show up. There are only a handful of places worth considering at the present time. One thing you will need is patience and the time for the bank to get things in order. The banks act like they could care less about customer service or doing things in a timely manner. It becomes a nightmare unless you can wait them out.
Much of the time the condos will need work as they may not have been taken care of. Many times the Banks will sell it like it is at a reduced rate or update it to get sold. It all depends which way you want to go. Most people do not want to do work so if you are able the price becomes much better. This is where you can build sweat equity either by doing it yourself or having someone do it for you. This is a risk feature that can work in your favor.
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Selling Your New Orleans Condo, Flyers still get the word Out! Gorilla Marketing! Old School!
October 6th, 2009 categories: Selling your Condo
In the world of marketing condos the real estate sign is not going to help you sell the condo in most cases as signs are not allowed or cannot be seen. One of the Old school ideas that gets notice is a simple flyer that catches a person eye. You can give them out to whoever. You can e-mail them to past and present clients. One of the best uses to to give notice to the current condo residents and their visitors that the condo is for sale.
Many condos have have a desk person or central desk for messages or security. Put them there. Bulletin Boards are common. There is usually a bulletin board near the mail boxes. Its getting them out so people will see and pick them up.
I am going to staple a candy bar to each fl-yer to make it more desirable for residents to pick them up. Its just another marketing idea. You can get a bag of miniatures for “cheap” from Wal Mart in the Halloween Season. You can do it again of the Christmas holidays.
You can e-mail the fl-yer to agents and past clients. Its another way to get the photos of your listing in front of people. Putting info about the condo association on the reverse is another way to get more info in front of the public. You can put past sales on the back as everyowner wants to see the values and compare to their unit.
Many agents do not like to make flyer’s because they do not believe it works or its not easy for many agents to do something that stands out. Its one of the little things that you can do get your listing notice. You may be alone which makes it all that better. Always good to have in the unit so people can take them with them.
Making the Best Points and photos that show them off are the best way to go. Too much detail and you lose them. Let the Photos work for you. Drive tehm to your site for more info and an indepth view.
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Listing Your New Orleans New Orleans Condo, The seller needs to know what the competition is? Think like the Buyers!
October 3rd, 2009 categories: Selling your Condo
You will get a good idea of the properties values from condos that have sold in your area by looking at the past history of sales. This is important in setting a price. This is what we know as comparables in the business. It is what appraisers use to set values. It should not end here when you are the sellers or the listing agent.
Knowing which properties are currently for sale are equally as important. How does your condo stack up against this group. You also need to be competitive with current properties for sale in your price range. Buyers will comparison shop and start of with 6-10 properties in mind. The buyers shop in price categories within their own criteria.
Knowing what you are competing against is important. Most buyers buy the best deal if it meets their criteria. If your condo does not compete well, yours will not sell. Your agent should know how you are going to slot in the available properties. You as a seller should know what you are up against. Oddly enough there are generally less numbers than you may think. A lot of times you are only competing against 5-6 properties.
I set my sellers up to receive updates on the competition as if they were buyers so they can see what the market trends are. There are always reasons why your condo is not picked. It is not always price alone that buyers make their decisions on, but it is high on the list with condition.
Many agents are not really aware of competing properties especially if they do not put in the study time or really know the areas involved. A lot of listing agents only list and thus never really see the competing properties. If you are selling you need to ask the questions and take an active part in the process. Buyers rank their choices and you want your property ranked high enough to make the final selection list.
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