Archive for February, 2011
The importance of Views in New Orleans Condos cannot be over looked..
February 24th, 2011 categories: Condo Knowledge, French Quarter
The value of a view great condo cannot be understated in the New Orleans Real Estate Market. People do want views and it is always worth the extra to get a good one when you go to sell. It will show up in the square footage but its hard to tell unless you actually know what you are looking at. The same can be said about private patios and balconies but they are not as the “View” .
I recently sold the condo with this view below in the French Quarter. It was a fantastic view with a patio as well. It sat on the market for months because it needed a lot of remodeling and the price was too high. I went into my mind inventory as one of the best views in the French Quarter below 250k, it eventually sold for 225k.
My clients are almost finishing all the upgrades having spent about 20k to date. The transformation is amazing. They had the vision, insight and the desire to create their own space. Now they may have the best 275k condo in the quarter with parking to boot.
Many time the developers do not fully take this into account on a new project as much as they should basing prices on square footage. Only so many units can have views like this unit below. It has 4 french doors like this facing the city and two facing the patio. The unit may show wear but the views are almost impossible to replace.
The natural light tends to come with condos that have great views which is always a plus as well. When markets slow down as we have had the last couple of years, people will not just buy anything but want the best in a second home or primary residence.
The appraisers know the views matter but just cannot give them the higher numbers due to their techniques of valuing a property. The real proof are in the sales of these premium views. If you have the desire to remodel then you may want to buy a great view in a unit that needs updating.
The view values are going to be important in the French Quarter, Warehouse District, Garden District, Lakefront and Uptown New Orleans because they are not that easy to find in a search. Let say the “views” have timeless values. “View the view as an investment and one of the most enjoyable benefits of owning a New Orleans Condo. As Lana Sackett once said the “eyes” have it……..
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Buyers, Knowing what the seller paid can help you …Most of the time.
February 14th, 2011 categories: Buyers Agent, Condo Knowledge
Knowing what the seller paid for a piece of property and when can give you insight into the value of the property and how the seller will negotiate. It is not the only factor but it does help in deciding what the numbers will be.
Assuming the seller made a fair purchase we as agent know what has happened to the market in recent history. Recent history meaning the last 5-6 years. If the trends for that building or complex is down then the condo may be less that what he paid for it. He may or may not have done any upgrades to offset the decline. Sometimes you find sellers that have put a lot of sweat equity to make up for the decline. Many times not. If sales were off 6% in that time period then you can take off 6% to get to a number.
Match this number up with the recent sales to see how they compare. Is just another tool for a buyers agent and buyer to use. If the seller has been in the place a long time this becomes a useless number for value. But it does tell us he may have plenty of equity and we will to leave with profit. It is much harder to deal with someone who is going to loose money.
The seller may have paid too much for the unit when buying. This may not happen as often if buyers do not think like future sellers when buying. The seller could have gotten a great deal and he just wants to sell and move on. This is a good position for the buyer.
This also becomes helpful when looking at bank properties and seeing what they paid for the properties. They may just want to unload the property quickly at a fair price. Many times these condos are priced to sell.
In the end it becomes a tool just like knowing the time on the market, price reductions, time of year selling, general trends, specific trends and other factors that effect values in real estate.
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