Archive for January, 2010
FHA ends spot approval for Condos 2-01-2010! Now financing is more important than ever! It means more buyers for your condo! If you are on the FHA list.
January 31st, 2010 categories: Condo Knowledge, Selling your Condo
The FHA spot approval process ends today. In the Metro New Orleans Market you can borrow up to $287,500 for a purchase of a condo or home used as a primary residence. The value of an FHA loan is the low down payment of 3.5% and the lower mortgage insurance fees. The interest rates are generally the same as a conventional loan. The VA loan generally follows the FHA list as well.
Most of the condos that I sell will no longer qualify for the FHA loan unless they are on the approved list. Few associations have been added to the list in the last ten years. With easy money it was not needed. Times have changed and many companies will not lend on condos unless you have 20% to put down. This will slow sales and end up decreasing values in certain segments of the condo market. This is the under 300k market.
If you live in such an association where most of the sales are under 300k you need to ask the management company and the homeowners association to look into getting you condo association to be put on the list. Its not an easy process and takes at least two months. Why Would you want your HOA to pursue this ? Read the rest of this entry »
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Does the New Orleans Saints winning help Real Estate? It Sure does not Hurt!
January 27th, 2010 categories: New Orleans Origionals, Warehouse District
I can say with first hand knowledge that with the Saints having several playoff games has greatly increased the interest in buying in the Warehouse District in particular. I have been showing several clients who want second homes where they can come to New Orleans for the games and to enjoy what the City of New Orleans has to offer. They all expressed an interest in living in the area on a part time basis.
Most of the press has been very positive for the City of New Orleans and the fan base that extends along the gulf coast and all of South Louisiana. They enjoy the people and the lifestyle. It is totally different from where they are coming from. I have clients from New Jersey, New York, North Carolina, Texas and other states as well. Maybe everyone does not want to live by the beach in Florida.
Now if the local politicians could begin to court these clients as well with upgrades to the infrastructure. These are great tax paying clients that will take part in the rebuilding of downtown New Orleans. It ends up helping everyone and gives us many more helpers plus the cash. Maybe the next Mayor will see this as a positive and push for the changes that are needed.
All ask “what does the future holds for the city” Maybe the Saints are light a fire under someone to see the light for growth and the new blood that will make the entire area a better place to live. Enough of the editorial !
Let’s enjoy the ride until the game in Miami as we are still playing when we are usually talking about a high first round draft choice. Can you think of all the hours upon hours of Saints talk with Buddy Dilberto and Hap Glaudi about when the Saints go to the Super Bowl.
Its Here ! Geaux Saints !! Win !!!
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Magazine Place Condos at 760 Magazine Place. A premium Townhouse style condo in the Warehouse District.
January 23rd, 2010 categories: Condo Listings, Warehouse District
The Magazine Place Condos located in the New Orleans Warehouse District at 760 Magazine has some great features that people are looking for. The great location, on site secure parking, updated condos, high ceiling wood floors, exercise room, roof top common area, courtyard entrance make this one of my favorite smaller complexes in the New Orleans Warehouse District. I just listed this condo for $333,216.
There are not a lot of townhouse style units in the Warehouse District but this is one of them. This condo is almost 1100 sq. of living with a small balcony off the living area. The two bedrooms are upstairs with the two bathrooms. There is a half bath down. The high ceilings and wood floors with the natural light give this condo a much larger feel.
The building was converted into condos 6 years ago and everything was updated as they were sold. The kitchen is small but has been updated with granite counters, stainless appliances, and custom cabinets. All the bathrooms are also in great shape. This unit is move in ready!
The location is great because you are within walking distance of the French Quarter, New Orleans Arena, Riverwalk, World War II Museum, Aquarium of the Americas, New Insect Museum, St. Charles streetcar line, many places to eat, Harrah’s Casino, The Convention Center, Lafayette Square, plus all the major hotels in downtown New Orleans.
You can quickly review all the 2/2 units in the area between 300-450k as there are not very many for sale. This is the strength of the Warehouse District real estate market.
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Your New Orleans Condo can be your second home and a place for your student to live! Two uses for the price of one!
January 17th, 2010 categories: Condo Knowledge, Second Homes
I sell quite a few condos to students going to Tulane, Loyola, LSU Medical School, Tulane Medical School, Loyola Law School, LSU Dental school and others. The same goes for young doctors doing their residences or fellowships at local hospitals. A condo offers a carefree lifestyle for the student to concentrate on their students in a safe and quiet environment. They can also double as a second home for the parents.
The Second Home Advantage- You can borrow at the same rate as you can on a primary home. At around 5% , this rate is great. The values have been stable in most of these areas for the last 4 years. You may not make anything in the short term but you are building equity month by month. Once the student is finished school you can use it as a second home.
The Condo Advantage- Your upkeep is only on the inside of your unit. The upkeep and Insurance are paid monthly in your condo fees. Your time is free to enjoy the time in New Orleans. Leaves you time to enjoy school and your studies.
Locations for Students - Most of the condos that sell to students are in the Uptown area of New Orleans along with the Warehouse District. The Warehouse Distance is a short distance to the Medical schools and all the local hospitals. Uptown along St. Charles and over to Magazine Street are also great locations for condos in prime areas. You will never spend much time commuting in these areas.
Roommates can help pay the rent- Getting a roommate can help you pay your note. There are plenty of students that would love to live in a nice condo. I cannot guarantee great roommates. However they are not hard to come by in a city where rents are high for the nicer locations and places.
New Students and Buyers come every year- When you are ready to sell there will always be some buyers. In this market you as a buyer have to know the locations and types of places that will be in demand when you are ready to sell. Its the location, condition and style that will give you the best return. Do your homework or ask me your questions!
New Orleans offers a well rounded education that students generally remember the rest of their life. Many will want to repeat that segment of their life 30-40 years later. They can do that with the condo as a second home in New Orleans as time stops. Enjoy the Class of parades. Tuition Free in the early Spring of every year.
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Cold and raining in New Orleans! Buyers have stopped Looking! Not at All!!! They look on the internet!
January 9th, 2010 categories: Buyers Agent, Selling your Condo
Not many New Orleans buyers are physically looking at condos or homes bad weather and rain. That however does not mean they are not interested. They are looking on line using the Internet to search for places that they may like. They are using all types of sites to see what is out there for them. They are looking for information and going to all the places that they can find. Some of the sites are:
Local Broker Sites- Such as Latter and Blum and Prudential Gardner will have all the listings in the local MLS. All the listing by all the brokers will be on those sites. The New Orleans Realtor board does not allow agents to have these properties on their sites. Just do not want more competition!
National Lead Generation sites- such as Realtor.com, Home Gain, Trulia, NOLA.com, Google and others buy feeds or act as brokers. They in turn sell the leads to agents and to the brokers. They know almost nothing about the local New Orleans market. They want to ad revenue and lead generation. The leads that they generate get sold to agents and brokers. They will sell you loans as well. These may not be the best for you however. Buyer Beware!
Craigs List- This is a site where everyone can put listings up. This is for sale by owners plus Realtors who want more exposure. It allows the owner or agent more freedom in promoting the properties. As a listing agent you will get some response as buyers want to cover all bases.
Agent Sites- Are much harder to find as not all agents have sites and many who do have not spent the time to build them with local content. On my sites I try to give you a feel for the condo associations and the neighborhoods where people are looking. I understand what people are looking for. Besides this site I have a couple of websites, New Orleans Condos and New Orleans Real Estate.
Agent Blogs- This is a great way to get a feel for the markets. Its much more friendly and people recognize that you are talking about a period in time. Updates, Trends, Advice, Happenings, plus present pricing. Easy to review a condo association and advise on the basics.
Along with this blog, I have another blog New Orleans Homes and Neighborhoods which is photos and short notes on the various places where one can live. I will begin to review neighborhoods in the near future to give you a feel of the lifestyle. Now it is mostly photos of neighborhoods.
The buyer needs to be aware that leads are sold to the highest bidder or sold to an agent that needs the business. They may or may not be the right agent for you. They may know little about the area or have that much experience in real estate. The better agents tend not to take the leads as they are expensive and they are able generate their own leads. They could be great but think about the chance you take with such a large investment?
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The time line on the $8000 tax credit ! It ends on Friday April 30th, 2010. Dead line to have an accepted Contract!
January 9th, 2010 categories: Condo Knowledge, Grants and Incentives
You have to close by June 30, 2010 if you want the $8000 federal tax credit. This means in essence you have to have an accepted contract on your New Orleans Home or Condo by April 30, 2010. Lets put this int0 a time line so you can get started this month. $8000 is real money!
Jan 2010- get an idea of what you are looking for in terms of price, stlye, location, bedrooms and the rest of your criteria. You cannot do this in a week so you need to start now. See a lender now so you can get the numbers out of the way. Nail down the lender as this can delay the process. Chosing someone local is the best way for success. With the various new rules in effect give yourself an extra week. Time to do your homework is now!
Feburary 2010 Search begins- Start looking so you can narrow your choices down to the best 2-3 places. Be realistic in pricing and the condition. This part of the search can take 30-40 days. You can find the best things much sooner if you do your homework. Mardi Gras and Super Bowl will knock some days out. Feburary is short being only 28 days and then minus the stuff that happens. Know how you will finance by the end of the month.
March 2010-The Chosing stage- Narrowing it down and getting ready to write the offer. You have to get an offer written and accepted in March or April. Its the time to get the all the details worked out. Easter will knock some days out. You have to get Inspections set up and started. The condo documents need to be read and reviewed. The lenders will have to review the condo associations books and insurances. Give an extra week if its an FHA Loan. Remember the lenders just take longer these days.
April to June 30, 2010 final stages- The appraisal, loan processing, Inspections all should be wrapping up in April and May. Give yourself time for someone to screwup as it happens often. The title work still has to be done. The finish line is in site. If you miss the deadline for any reason then you miss the money.
The Repeat Buyers
The repeat buyers can qualify for a $6,500 tax credit if they’ve lived in their home for five consecutive years of the last eight. Repeat Buys need to understand that as long as they’re buying a new primary residence, they’re not required to sell their current home right away—or at all. In the meantime, they’re able to take advantage of today’s lower home prices and historically low interest rates.
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Selling your New Orleans Condo! Is it better to be furnished or unfurnished?
January 3rd, 2010 categories: Selling your Condo
It is always better to have your New Orleans condo tastefully furnished and decorated while it up for sale. It just flat our makes the condo look and feel so much better. Many buyers have little imagination and want to see what it will actually look like. Staging your condo is very important in a competitive market. It can and does get down to the little things. It can save you thousands by spending hundreds. Its your attractive choice.
Having your condo in great shape makes sense as buyers are looking for that move in quality. On that same wave length here are a couple of pointers when looking ofr ways to improve the feel. Seeing and Smelling your condo in the best light is the goal.
1. Make sure your condo is clean as possible - Go ahead and have the condo professionally cleaned and completely wiped down. Pay special attention to the bath and kitchen areas. Make your condo shine!
2. Remove the clutter- Let the Buyers see the condo not your junk or personnel items. Put it somewhere else. Its OK to rent a storage unit.
3. Your pet may not be every buyers friend- Most buyers like pets but why take the chance to remove one from consideration. The pet smells can be the biggest turn-offs to potential buyers. These have to be deleted from the buyers lists of considerations.
4. Let the light shine throughout - Let the purchasers see the natural light. Have the curtains open with seeing as much natural light as possible. Make sure all the lights and bulbs are burning bright.
5. Make the repairs that are needed ! If you know something needs fixed then fix it. If something needs painted then get it painted. A good listing agent will point these out to get your unit primed for sale.
Many times you will see people spend more time in preparing their car for sale than their condo. How does this makes sense ? One may be worth 20-30 times the value and deserves the same grooming and shining.
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New Orleans Second Home Market ! The Twos are in and the Ones are not!
January 1st, 2010 categories: Market Trends, Second Homes
The New Orleans second home market for condos in alive and well. Its not doing as well for the one bedroom segment. The tw0 bedroom condos are more more in demand. This makes sense on a couple of fronts. Many buyers want the two bedrooms for family and guest to use. Buyers in the market today for second homes are skewed to the middle range condos from 200-4ook. The low end market is just not there.
Many of the sales are cash or the buyers have 20% to put down. The interest rates on second homes is still around 5%. There has never been a lot of investors in the Condo Market in New Orleans and now that is a good thing as prices have drifted lower but have not cratered. The prices have been level since 2005.
Most of the sales I see are in the French Quarter, Warehouse District, Garden District and Uptown New Orleans. The buyers are much more willing to venture to all the areas where several years ago sales were concentrated in the French Quarter.
The fact that the one bedroom unit sales have been slow means there are currently some good deals in this segment as well. The fact that first time condo buyers are not there in numbers like a year ago makes an even bigger impact on the market. There are some nice deals to be had with that said. The condos that need cosmetic work or are outdated are not at the top of any one’s list. These could be good buys if you are willing to do some work and the price is right.
The rental market has been good as fewer first timers have been buying but renting. You can as a second home buyer rent your unit out from time if you desire. That is a fickle market but it is here now.
Few New Developments are on the drawing board due to the financial mess we are in so new competition will be few for your condos. Maybe a second home is in your future. We may even have a post Nagin housing uptick when the Mayor leaves the 5 th of May 2010. Just over 4 months away!
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