Resale Value and Condos
By Jennifer Alcide
When buying a condo, what holds the most resale value?
A lot depends on why you are buying the condo. Are you buying it for a home or for an investment? There is a difference.
The resale value is always an important factor when purchasing property. If you are looking at your purchase as a home, then make selective improvements that will mostly enhance your quality of living, and not based solely on a possible return. If you are looking to invest, then spend only a minimal amount on upgrades.
Condos with a pleasant view of the city or the lakefront often sell at a premium above similar condos without the view. If a view is important to you, try to pay as little extra as possible. Otherwise, you might not get your money back, as a view may be a deal breaker for you, and an added bonus for someone else.
Since the resale value is an important factor when purchasing, make sure you do not buy in a neighborhood that is already saturated. It may be difficult to sell when the time comes. You should buy a modest sized model, perhaps not always the largest. When determining market value, the surroundings in your area are most important.
In the end, choosing to buy a condo is a matter of personal preferences. This is one of those times where determining your "wants" versus your "needs" can be extremely important.
Want more information about resale value and other topics related to condos? Contact me via email at jalcide@ownacondo.com or call me at 847-414-5349.
Chicago Real Estate Market
Chicago real estate professionals are hoping that Mayor Rahm Emanuel, who is scheduled to take office on Monday, May 16, following Richard M. Daley’s 22-year reign, will move quickly to reinvigorate the Chicago real estate market in whatever ways he can.
Emanuel has already ruled out raising property taxes to address the city’s major budget problems, which is good news for cash-strapped homeowners and anyone planning to buy a condo or other house.
Emanuel has also ruled out raising property taxes to address the city’s major budget problems, which is good news for cash-strapped homeowners and may encouraged wary homebuyers.
Emanuel noted during the campaign that local “real estate values have lost 30-40 percent during the recession–much more in low to moderate income communities.”
According to city estimates, there are approximately 19,000 vacant buildings and 10,000 to 15,000 vacant lots in Chicago. The crisis is evident looking at the high number of boarded- up homes in many neighborhoods. Emanuel has asserted that in neighborhoods hardest hit by the recession, there are severe barriers to private investment, and said city leadership and action are essential. He promised to “make sure Chicago utilizes every tool possible—like land donations, demolition liens, and non-cash bids on delinquent taxes—to make sure investments are targeted and comprehensive, to give communities the greatest chance to redevelop and succeed.” He wants to develop and implement plans for re-use of all buildings and vacant lots in targeted areas. This includes rehab and new construction, adjacent land donations, parking improvements, community gardens and urban agriculture.
During the campaign, he stressed the importance of a diverse housing market in helping Chicago remain a world-class city, and hopefully the Chicago real estate market will rebound and the sale of condos and other homes will rebound again.
In an interview with the website Hispanically Speaking News, Emanuel also pledged his support for rules mandating that new housing developments in Chicago set aside a portion of their units as affordable, to make home ownership possible for more people. In a further effort to strengthen the Chicago real estate market, he also plans to expand the Neighborhood Stabilization Program, allowing the city to acquire and fix up more vacant and foreclosed homes.
Selling your home or condo
The housing market has certainly had its challenges the last few years but that does not mean you will have to take a loss when selling your home or condo. The key is to be fully prepared and have a home selling plan before you put your home or condo on the market. What is your reason for selling? Are you truly motivated and committed? Have you thought through the process? If you aren’t committed you could be setting yourself up for disappointment and more importantly losing money.
When selling your home or condo set the pricing where it will sell and not stay on the market too long. Too many sellers make the mistake of thinking their home is worth more than what the market will bear. Remember your home is worth what someone is willing to pay. Preparing your home or condo for sale can mean the difference between the highest and best price to selling below market value. Make sure you repair obvious maintenance issues that have been neglected and give some serious thought before making improvements since not all repairs will pay off. Once the repairs and improvements have been made do some research about home staging. Home staging is simply putting your home’s best face forward for potential buyers as they view your home creating that feeling of a well maintained, pleasant place to call home. One last thing that many people selling their home or condo don’t think about is preparing net profit sheet based on a low price and high price. Have in mind what you want for your home or condo and be prepared for the worst and hope for the best.
Traveling via the Internet
Parents worry that their teens are spending too much online, rather than going outside “like we used to when we were kids,” but the World Wide Web is well-named, because a lot of traveling via the Internet can be done—moreson than on a bike.
The Internet also expands your horizons when buying condos and conducting other real estate-related activities. All aspects of business have been greatly enhanced by the Internet, and it is economical too. Using the Internet to view properties, obtain documents and even buy properties at auction, saves lots of time and money.
Business meetings are now customarily held using programs like Skype and GoToMeeting, so you can sit in your office or at home instead of an airport or on a plane in order to fly halfway around the world for a short face-to-face.
I have been doing a lot of traveling via the Internet myself, not necessarily for work, but through Internet forums, I have ended up meeting people from Ann Arbor, Mich., to the Netherlands who I originally just knew by a nickname online. You can very easily search for condos from the comfort of a couch or coffee shop instead of driving around in your car.
So whether you looking for foreclosed condos or $4 million mansions, with the Internet, you can do all your business with people in far-flung corners of the world.
Of course, for safety reasons, parents have to be vigilant when monitoring younger children’s traveling via the Internet. But the Web can truly be a window to the world, whether for teens playing World of Warcraft to entrepreneurs negotiating deals on Wicker Park condos.
Choosing a Neighborhood
After deciding to buy a condo, or any home, choosing a neighborhood is likely to be one of your most important decisions.
Within cities such as Los Angeles, Chicago and New York, there can be any number of neighborhoods, all quite different from one another. Of course, price will likely be a deciding factor, whether you are looking for a luxury condo or a starter home. But even within the same price range, there are a lot of variations.
There is much truth in the old saying in real estate about “location, location, location,” being the most important factor in home values. Depending on your needs, being close to a nice coffee shop, restaurant, grocery store or dry cleaner’s—or even your favorite “watering hole” can be of prime importance, and should not be overlooked when choosing a neighborhood. Accessibility to public transportation or major highways is something else to consider. Accessibility and the quality of schools are also a major consideration for many people when choosing where to live, not only if a member of the household needs to attend school, but as a selling point when it's time to move on. Whether you are buying or renting a condo or house, there is no point in settling for something in an area that doesn’t suit you.
It is wise to visit the neighborhood at different times also, to see if you like the atmosphere. Why wait until moving day to find that the neighbors like to blast music at all hours of the day and night? Introducing yourself to neighbors is also a good idea. It doesn’t hurt to ring a few doorbells on a weekend just to say hello when you are choosing a neighborhood. Who knows, if you are looking in celebrity hotspots such as Los Angeles or New York, you might find anyone from Anderson Cooper to Ziggy Marley living next door.
In any case, our Realtors® are ready to help you find the perfect place.
Loretta Lomax
Loretta Lomax has joined the growing team of dedicated Realtors® at OwnACondo.com, many of whom have earned accredited buyer representative (ABR) designations.
She brings to our company more than three years of experience in real estate sales, as well as a professional philosophy. In addition to being a Realtor, she is also a business owner and has a professional background in computer technology. The companies she has owned since 1997 include Lomax Enterprises and Lomax Real Estate Solutions.
Her specialties include:
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Townhomes
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Downtown Chicago real estate
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North Cook County real estate
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South Cook County real estate
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Will County real estate
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Lake County real estate
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DuPage County real estate
When she is not working on helping her buyers, Loretta Lomax has a wide range of interests, including running, tennis, sewing and cooking. She also donates her time to non-profit organizations such as Jobs for Youth and Urban Prep Academy. She also is assistant manager of the Chappel Condo Association and holds membership in several industry organizations. These include Association of Information Technology Professionals, and e-Marketing Association Network, as well as National Association of Realtors®, and Computing Technology Industry Association (CompTIA) Certified Professionals.
Her educational background includes a degree in Business Administration from Harold Washington College and certification in information technology and digital media from the Computer Systems Institute.
“Having bought and sold a personal residence, and lived in and assisted in the management of a condo complex, I feel I have an up-close and personal connection with consumers interested in buying real estate. Prompt, patient and professional is my philosophy,” Loretta Lomax said.
Contact Loretta at llomax@ownacondo.com if you have questions or would like help finding your dream home.
