Archive for December, 2009
Selling your New Orleans Condo! Your first offer could be your Best ? History does repeat itself ! Greed is not a virtue!
December 28th, 2009 categories: Condo Knowledge, Selling your Condo
Many times the first offer you receive on your condo could be your best. A good agent will give you an asking price and a range where he expects the selling price to be. Its an educated estimate based on past sales and the present competition. It happens time and time again that this is the best offer. Sellers tend to want to try for the numbers that are not in the cards. A good agent can almost tell you ahead of time what is a good offer at that particular time.
When you list a property there is a group of people looking in that price range and need. This group will look at it as soon as they can. Most of these buyers have agents who do advise them on current pricing and the competition. When the listing hits the buyer’s agent notifies the buyers of the new listing. Many times this is thur an MLS feed that updates buyers daily as condos or homes come within the range they are looking for.
As a seller don’t let the boat leave without you! Buyers may not be on the return trip ! Houses and Condos are not like stocks and bonds that have a ready market daily. Buyers can be very unpredictable ! Expect showings to be on the upswing as we enter 2010.
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When Buying a condo ! Think about the resale value? When you are Buying!
December 27th, 2009 categories: Buyers Agent
When you are looking to buy a New Orleans condo in this type of market you as a buyer need to make sure you are thinking about the resale value down the road. In a fast market it was not as important as it is now. I see a lot of condos and show a lot of people. Most people tend to think along the same lines. Here are some of the ideas I have come up with to think about when you are looking.
1. Price- Make sure you do not overpay for what you are getting. Have all the negatives been factored in.
2. Condition of the Unit- People want to buy things in prime condition these days. Buying something needing cosmetic updating is OK if you can stay within a budget.
3. Condo Association - Is condo association in good shape from a financial standpoint. Is there major repairs needed in the future. can it be easily financed.
4. Does the Condo Association present itself well. Do the common areas of the association look like its a place you want to live. Is this the style of the individual condo that will appeal to most buyers in New Orleans.
5. High Condo Fees- Most people want to pay moderate condo fees. As fees go most likely your services do as well. However people do not like high fees.
6. Views and Light – It means a lot and you do not want to underestimate the value of natural light and windows.
7. Parking- Make sure there is available parking. Do not buy the odd ball condo without parking if others have it. Just not worth it.
8. Amneties do matter The common areas do matter. It may be the deciding factor as you narrow the search down.
9. Security and Safety- You need to think like a single 29 year old female. This is very important for many many buyers. Perception can be reality.
10. Location, Location- Is the location going to get better in the future or is it going to get worst. People pay for location. What is happening in the area to make it better. Is it easy to duplicate?
I can write a blog on each of these points. These are some you can think about and add some of your own. None may be perfect but its what you can do with it in the future.
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Buyers are on Vacation but looking and thinking of next Year ! It pays to be ready!
December 22nd, 2009 categories: Grants and Incentives, Market Trends
The buyers are still in the condo market, some segments are of course better than others. What we are now seeing is less new units coming on the market. The sellers are waiting for next year until the Saints win the Super Bowl or until their unit is ready to sell. Real Estate is seasonal. Buyers are busy looking on line to see what there choices are. Many are looking but are still in the decision process.
The interest rates are still extremely low. They will not be this low in a year or two. Borrowing 100k today will cost you only $538 for principal and interest. This is great incentive to purchase. Rates are at 5%.
Prices are a little lower but not in a fall like some cities. Prices have been fairly steady but there are some wonderful deals to be had. As a buyer you have less competition now and that means saving about $5000 on an offer. You will not get this discount in April or May.
$8000 and $6500 tax credit is waiting for you as well. I think the economy and overall sales will improve and this will surely go away. Its a gift for you now.
Second Home Buyers are beginning to return to the New Orleans Market. New Orleans has been receiving some great publicity over the past year. With Mayor Nagin leaving on May 5, 2009, we may have a mini boom or at least we will feel in more reliable hands.
It does pay for buyers and sellers to be ready. The buyers who study and know the market trends have a better chance to buy and sell high. It always has a lot to do with market timing. Make this your advantage !!
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Sugar Plantation Condos In New Orleans Warehouse District, New Listing $289,219. One bedroom plus office! Garage Parking!
December 16th, 2009 categories: Condo Listings, Warehouse District
This is a premium condo listing that I have just relisted and reduced in price! It’s located at 840 Tchoupitoulas at the Sugar Mill Plantation next door to Emeril’s. It’s in the center of the New Orleans Warehouse District. It’s almost new as these were built as condos in 2005 and everything was brand new, rather than a conversion. It’s still almost new except for the sellers colors and modest changes. It is also the least expensive condo in the complex. The price range is from 300k-550k in the Sugar Plantation Condos.
One of the issues is that it can be a two bedroom but the second room has no closet so by definition its a one bedroom. Many people looking for a second home like the fact that they can have a guestroom. If you are living there it makes a nice office. The bathroom has a hall entrance as well as an entrance to the master bedroom.
This is a Warehouse Condo with street views of Tchoupitoulas that features exposed brick exterior walls, high ceilings, exposed beams, stained concrete floors, wide hallway, granite counter tops, stainless appliances, washer/dryer, and that finished look of a high end condo. The condo has garage parking along with a large storage area on the first floor. The storage area is 8×10 and is a secure room on the first floor.
The condo itself is 975 sq. ft. of living all on one floor with easy access to the elevator. The condo fees are less than $350 per month and include water, insurance, common upkeep, management, and a passport to a care free life in downtown New Orleans.
The condo association features a courtyard and pool. There is a party room and small exercise room. This is very rare for a condo complex to have all these amenties with 43 condos in the complex. These were built as condos so everything in the association dates from 2005. It could be considered better than new at this time.
The association is professionally managed. The condo fees are still one of the lowest in the New Orleans Warehouse District. The garage is secure, the front door is entered by code key, and is well maintained. You can walk anywhere from this location.
Look at additional Warehouse District Photos, its a lifestyle !
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New Orleans Warehouse District Condos, Strength of the market is in the 2 bedroom/2 bath !
December 12th, 2009 categories: Market Trends, Warehouse District
The strength of the New Orleans Warehouse District Condo Market is currently in the 2/2 condos selling between 250k and 500k. On the surface the supply looks great but on a closer look you have fewer and fewer choices. There are 40 condos currently for sale in this category. There are 10 recent sales of units that have sold or now under contract.
There are 13 units for sale at 1201 Canal Street in the old Krauss building although technically in the Warehouse it is much more a French Quarter Place. There are 8 units for sale at the Rotunda at 330 Julia Street. Take these away and you are left with 9 choices. This is not a lot as potential buyers are looking certain criteria that these 9 may not have.
There are no new condos or conversions currently on the drawing board so the supply will not increase anytime soon. In January you should begin to see new listing as well as new buyers coming into the market.
The one bedroom units are not in high demand which is totally uncharacteristic for this segment of the Warehouse Condo Market. I have several premium one bedroom units that are not being shown much in the last 60 days. I have a two bedroom listed that has gotten shown 5 times last week. Very Strange indeed!
The only reason I can tell you is that the buyers are young couples looking for a place and they need two bedrooms. Other buyers looking for a second home and they want room for guests. The first time buyers are just beginning to think about purchasing. This is most likely due to the economy in general or the tightening of lenders as to who they will lend to. Then we could be in a seasonal lull.
Regardless of the reasons sellers have to have their units priced correctly or purchasers will look only. As a buyers agent it is easy to see which units are overpriced. The appraisers are even tighter so agents do not want to waste time with things that cannot close.
As a purchaser the best way to approach this market is to view what is availiable now and then see the new listings as they come on. This will give you an idea of what you are looking for when the time comes to purchase.
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$8000 Tax Credit is yours! Add that to a couple of things that people forget! Building Equity and the Interest Deduction!
December 7th, 2009 categories: Buyers Agent, Grants and Incentives
Besides the federal tax credit there are two very important aspects of buying that you may forget about.
1. Interest deduction is big. You get to deduct your interest on your taxes for every year till its paid off. The deduction is based on your tax rate. If you are in the 25% bracket and you pay $10,000 then your savings would be $2500 per year. Taxes are also deductible as well.
2. Building Equity. Your note is is interest and principle. Each Month you are paying down your note. The amount of equity increases with every payment. If you borrow 200k you are paying down your mortgage by more than $200 per month. Its paying down the mortgage by at least $2500 in year one. This is building equity.
Federal Tax Credit $8000/$6500
The $8000 First Time Home Buyer Tax credit was approved and is now on the President’s desk for signatures. For first timers, the $8000 tax credit is extended until April 30th, 2010. The major addition is a $6500 Tax credit for existing home owners. Effective the day of the signing, this gives current homeowners, that have owned their current home for more than 5 years, a credit and incentive to move up or sell their home.
This is nice for homeowners to help with their closing costs. Income limits have also been increased to $125,000 single or $225,000 married and you can claim this credit on any home up to $800,000 in price.
Now you add up thses savings and if you qualify you could have all three of the savings of owning in year one. $8000 plus $2500 plus $2500 equals $13000 for this example. Its hard to beat that return !
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