Archive for the 'Selling your Condo' Category
There is only one first Impression for pricing….Want top dollar for your condo, then prepare to price Correctly…
September 17th, 2011 categories: Selling your Condo
Selling your New Orleans condo is all about preparation. You only get to have one first “ price impression” and only one “Look’s First Impression” at how your condo looks. You have to make both impressions count in your favor to get the unit sold. Studying the numbers is a must. When a property is first listed it gets a lot of looks. Peole that have been looking see it, buyers that are just beginning see it as well. Most buyers know about prices via the internet and their agent. So price with this in mind.
The initial pricing of the condo is very important if you are serious about selling. The sales price has very little to do with what you paid for the unit when you bought it. The sales price has nothing to do with what you owe on it. The prices may have risen or declined since that point in time. The price is determined by the current market.
Pricing and appraisals are done by comparisons. The appraiser is going to be looking for similar units that he can compare to your unit. The most recent sales are the ones that will be used. He is looking for something that has sold in the last 6 months. The best com-parables are units that have sold in the same building. The way appraisals are ordered these days, the appraiser will not have seen any of the units he is comparing your condo with. His main focus will be on square footage.
When you price to sell you view all the intangibles as to how they compare with all the listings that you are competing with. The views, the location, the updates, the windows, parking, high ceilings, upkeep and the overall feel of the condo. This is where you see the biggest differences in your competition. This is where you have to work to make you condo shine. The cosmetic issues become important. How does my property show……Is it dressed up or still in shorts….
Recent updates need to be written down and shown to prospective buyers. These are your positives and they really do count. Buyers are going to be looking at 5-6 units and of course want the most for their money. Many buyers have been in the market for a while and are waiting for the right one. They compare your condo with ones they have seen in the past and those currently on the market. a Many will be just starting are are ready to buy now when they find one that has all the things that they will want.
Buyers are willing to pay more for premium condos so sellers to to do what they can to make the unit a premium unit. This is enough info for a complete blog. Buyers do shop in brackets. They will say “175″ to 200k”. An agent will show a little above the range. An experienced agent may show the condos a little about the range, maybe to 215k. He knows some people may overpriced a little. He will not show those that are not not priced correctly above the numbers. Its like not even being on the market unless you just have a buyer that likes to look.
Its must easier to sell your unit if you price it correctly. Its much easier if it looks as well as it can. Most sellers know this but most will not practice it. It means money if you do…
| Discussion: No Comments »
Motivated sellers often give you the best deals in your New Orleans condo purchase!
December 2nd, 2010 categories: Buyers Agent, Selling your Condo
When you are looking to buy a condo you want to get the best deal possible. You can get great deals with short sales and bank foreclosures but the numbers are limited in the New Orleans condo market. I work the Warehouse District fairly hard and there may have been only a dozen successful sales through banks in the last 3-4 years. This would be a combination of short sales and foreclosures combined.
Banks do not make it easy to purchase but motivated sellers surely do. Their desire is strong and will work with buyers and agents to get the necessary things done to get to a successful sale. This can be the subject of the next blog.
The motivated seller knows the price has to be right. The sellers motivation can change over the coarse of the listing process. Your agent needs to know that things change quickly and suddenly when people are selling. It may be the new job or lack of job. It may be a new purchase. It may be a divorce. It may be a need to free up cash. It may be a graduation or marriage. Whatever the reason certain sellers are highly motivated to sell from the start.
They will price the condo to be the best in its price range so each buyer looking in that price range knows its a fair buy. Buyers can easily find out the purchase of the condo through the buyers agent so in a flat market the value just does not go up unless positive changes are made to the unit.
The motivated seller will make the condo easy to show. The seller will do all the little things needed to have the place looking the best it can be. This may be done with updates, repairs or using a professional stagger. The seller will know these are important factors. Some may just think its the price and they will be disappointed.
One of the best sellers for a buyer is one who has a lot of equity and just needs to sell for a variey of reasons and just wants his money out of the property. Just saying your motivated is not going to work as a seller, you have to do it. An experienced agent should know and spot the changes that have been made and be able to feel the motivation.
The listing agent may or may not know if his seller is motivated strange as that may sound. Your buyers agent needs to know as it can be money in your pocket. Another oddity is that it does not always show up in the asking price.
I recently made an offer on a 200 k condo on Magazine Street that was priced OK. It was on the market for a week and we ended up getting it for 175 k. There were a couple of defects and the seller took care of those as well. It even surprised me that we got it for that price. It was a two bedroom with parking with lots of quality updates.
Another great motivation may come from a developer who has one condo left in a complex and just wants to finish up with the project. Sometimes he is motivated to get the first units condo sold and will give extras. You just never know…..
| Discussion: No Comments »
The value of the Views !! Views Matter in the New Orleans Condo Market ?
November 10th, 2010 categories: Condo Knowledge, Selling your Condo
The value of Condo views in New Orleans condo market may not be determined by some math equation or could it be found ! The value of the views is what someone will be willing to pay for what is considered a big plus in any condo complex. In many complexes that sell from a developer you can see what units sell first and which ones sell last. Simple: Better views generally sell first !
Many of the developers will sell on square footage rather than location within the complex. Early buyers get the prizes and end up with the higher prices when they go to sell their condo. Some developers will sell the best views for more as they know they will demand more money.
The 3915 St. Charles condos or St. Charles Gardens did exactly that selling the condos on St. Charles Ave for $40,000 more. At the time I could not see the value. As resales have come up the margins have help up or actually increased as the the lesser view units. Five years later I was proven wrong.
So, how do we go about figuring the value of a view when you are buying something you desire. If you are buying a 200k condo would you pay $5,000 more for the best view? How about $10,000 more? How about $15,000? Then you get to $20,000 more and then you say no because that is too much. If that is the case then the answer is between 5% and $7.5 more for those units.
It is not always not that easy since most condos will have varying degrees of great views. People do buy condos with bad views but when the market slows then they become harder to sell as buyers become more particular and want more for their money.
I recently sold this French Quarter condo pictured above because it had the best views of any condo in the French Quarter for the 225k range. The unit was not in good shape and will have a lot of updating to be done but the views are rare when you have 4 French doors overlooking the historic French Quarter.
In the end that was the rare feature of this condo that could not be found in units costing $100,000 or more. It did not hurt to have several balconies and a large 3rd floor patio. The buyers and I knew it had a great future. It was a condo located at 1020 Esplanade in an improving complex.
As you move up in the price ranges of the condo views will become even more important to the buyer and they can buy what they can afford. They know what they want and the extra money is generally worth the price.
In the French Quarter you do the same thing with the value of balconies that have street views. That can be another blog within itself. Second floor balconies are my favorite unless you can get Mississippi River Views.
| Discussion: No Comments »
That one thing you might be missing to set your New Orleans Condos above the rest.
September 4th, 2010 categories: Selling your Condo
With over 90% of home buyers searching online for a new home your home must make a great first impression. The first impression is a lasting impression! In a buyers market sellers compete with sellers. If buyers are not impressed what they see online they will move on to the next listing. Ready, Set, Stage! works with you and your Realtor to put your condo or home on the “must see” list for today’s home buyers.
| Discussion: No Comments »
Staging Advice pays off big time ! Getting your New Orleans Condo in top shape is very important!
July 31st, 2010 categories: Market Trends, Selling your Condo, Warehouse District
I just had a young couple, Lauren and Taylor that called me to list their condo in the New Orleans Warehouse District at the Cotton Mill Condos. They had already called a stager-decorater to come give them advice on how to make the condo look better in the sales process. I got there before they started to unclutter and repaint a portion of the condo. I reviewed the plans and everything she said made a lot of sense. We added a few things then the sellers were ready to start their work. They wasted little time as you want the resign to be finished before the first buyer comes.
The owner of Bella Home Staging is Suzanne Gindy. Her expertice was in telling the sellers on the things they could do to make their condo sparkle in the buyer’s eyes. She charged for her time and advice. Her initial charge was only $100. The sellers did all the things she was asking for. Many will need a follow up visit but Lauren and Taylor did not need one. The basics were
- To rent a space to put the clutter. This makes the unit look larger and the focus is on the unit rather than the things in the condo.
- Do some accent painting and touch up work to make the condo fresh.
- Move the furniture around to show the best configuration for this particular condo. Put the right amount of art work on the walls.
- Decorating ideas that just made the place look more livable.
The focus here was on the wood floors, large windows and high ceilings as these is why people like the Cotton Mills as a place to live. You want the buyer to say ” I want to live here and can see myself settling in very quickly”.
The best thing about the this approach is that it works and pays big dividends if you follow the plan. Once Lauren and Taylor finished the makeover and cleared the clutter we were ready for out first showing. The very first buyer that looked at the unit make an offer and it was accepted. Rather than taking less and staying on the market for a much longer they followed the plan and it worked to perfection. The condo sold and both the buyers and sellers were happy.
Today’s market is such that you want to be in the top three of your class so people will consider your condo. The positives have to outweigh the negatives in the eyes of the buyers. There are fewer buyers so you have to feature the positives of the condo so you will be the best in your class. Many buyers will not see past a junkie place or one that is not ready for sale. It just takes more work.
Suzanne Gindy knows more than I do about the staging business so why not look for advice from one of the best. She has a variety of programs but this initial step is well worth the money. I fully support any effort to make a condo more ready to sell in a much shorter time frame. My job is to get people in the unit through marketing the condo in the best possible light. Working on a premium unit makes the photos, flyer’s, videos, Internet ads all look so much better. People start off looking at pictures and staging gives you some great photos. Its is very much like a beauty contest so looking and feeling best is the way to go !
| Discussion: 2 Comments »
New Orleans Condo Trends for June! Bits and pieces of knowledge!
June 8th, 2010 categories: Market Trends, Selling your Condo
The market is odd for a couple of reasons. The most suprising is that you never seem to have more than 4 or 5 good choices in New Orleans when you consider all your criteria. There are not a lot of new units coming on the market but not a lot selling either. Buyers are looking for the premium units where nothing has to be done. They of course have to be priced right as well.
Sellers have to Stage and Update ! I recently listed a condo at the Cotton Mill Condos where the owners hired a young lady to give them tips and ideas to get their unit ready for sale. Some was painting and getting rid of the clutter. They followed her directions to a great degree.
It was time and effort but it worked. It sold within the week and I know this is why it did. Both units in their final choices were down this way. I was even surprised at the effectiveness and I do this every day.
Sellers have to slot their unit to be competitive ! This means knowing what your competition is and what the final choices are going to be before you list. You need to be slotted to be one of the best in that class. A seasoned agent that works the market can show you where you need to be. Selling a place is all about timing. Take the steps to make you unit compete like the Cotton Mill couple. This save time and make you money in the end.
Tax credit rush is over but interest rates are at 4.625% this week ! That means the cost of money is as cheap as it has been for 30 yeas or more. Borrow a 100k and you principal and Intersest is around $520. The tax credit di create a flurry of activity and many who would have bought in May and June pushed up their buying to April. Once the flurry ended there will be a lull.
The weakness is still in the one bedroom units. The weakness is in condos that need to be updated. The premium units are getting all the action as things have reached that lull. The Louisiana Oil Spill has not helped but may mean if you are buying the sellers may just say yes to a lower offer than they would have taken in April.
The photo above is in the New Orleans Warehouse District where a lot of renovations are being done. I can easily count 8-10 complete renovations in the initial stages of work. This was not the case in the last three years so I know someone has confidence in the New Orleans market.
Maybe its the “gone factor” of no longer having Mayor Ray Nagin running the show into the ground week after week. Breath of Fresh Air Now!
| Discussion: No Comments »
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 »
| Discussion: No Comments »
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?
| Discussion: No Comments »
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.
| Discussion: No Comments »
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.
| Discussion: No Comments »
