Condo Insurance
When looking for condo insurance there are crucial questions to ask to help guide you to the coverage you need. To state the obvious, a condominium is not the same thing as a house. Usually, there is no backyard or basement, and you don’t have to worry about cutting the grass or shoveling the front walk. Condo owners are typically responsible for insuring just a portion of their property on their own. However, rules differ from complex to complex, and it is important to ask the right questions to ensure you have proper insurance coverage.
One you want to look into before buying a condo is what are your ownership and insurance responsibilities in the condo association’s Master Deed? In other words, what does the association expect from you regarding your condo insurance requirements? Individual owners have a collective responsibility for insuring areas of the complex owned in common - building exteriors, hallways, pool area, etc. Individual unit owners typically are responsible for separately insuring everything within the four walls of their unit. The condo association’s master policy, as well as association rules, should spell out clearly which parts of the complex are insured through association dues and which parts are not.
How much is the association deductible? This is an area many condo owners don’t think about. Condo insurance typically includes commercial insurance coverage for the commonly shared building and common areas which usually includes an association deductible. In the event of a natural disaster and the condo complex needs major work the association will tender the claim to their commercial insurer. If there is a deductible it will be assessed to each owner based on their ownership percentage.
Joe Olan
Joe Olan has joined the growing team of Realtors® at OwnACondo.com.
The lifelong resident of the Chicago area, who lives in Park Ridge, brings a wealth of real estate experience to OwnACondo.com, having worked in the industry since 1989 when he received his real estate license. He went on to become a licensed broker also.
After working as a supervisor for UPS, Joe said he originally became interested in real estate as an investor and then decided to make a career of it. Earlier in his career, he worked for Century 21 and RE/MAX, and then opened his own brokerage. He is licensed in both Illinois and Florida.
“Helping people find their dream home is my ultimate goal. I am a ‘people person,’ a skillful negotiator and very creative when it comes to financing. I will aggressively go after the best deal for my clients. I know the city neighborhoods and surrounding suburbs very well. I really like putting all my skills and knowledge to work for my buyers. Helping and serving people is my main priority,” he said.
Joe Olan’s specialties include:
- Downtown real estate
- Chicago South real estate
- Chicago North real estate
- Lake County real estate
- DuPage County real estate
- South Cook County real estate
- North Cook County real estate
- Florida real estate
- Condo rentals
- First-time homebuyers
- Investors
- Apartment buildings
- Condo conversions
- Property management
If you have any questions or would like to Joe Olan to help you find your dream home or an investment property, contact him at jolan@ownacondo.com, or at (312) 813-6456.
Super Bowl
It is Super Bowl weekend so you might be inclined to take a break from your condo search to relax and enjoy the big game with family and friends. Next year, you’ll be hosting them at your new place.
Of course, if you had your hopes pinned on the Chicago Bears, New York Jets, or any other team that stumbled on the way to Super Bowl Sunday, you might not be in a mood to celebrate—until you win the football pool anyway. Here in Chicago, of course, many fans will be celebrating if the hated Green Bay Packers lose to the Pittsburgh Steelers.
Finding your dream condo can sometimes feel like the race toward the Super Bowl trophy, with so many twists, turns, teams, or condos, in the running at the beginning. You don’t know who your winner will be until you can see them and weigh the pros and cons. Of course, in the condo search, you hold all the cards when picking a winner.
When you do find your favorite and begin the process of arranging condo financing, the mortgage lender looking over your credit score can sometime act like a referee coming out of nowhere to penalize you and prevent you from reaching the goal line.
However, working with our Realtors® is like having the best defense in the business, and offense too, protecting you from pitfalls and guiding you toward your goal. Our condo specialists will be at your side all the way, at the negotiating table and beyond, ensuring that you get that ideal home, which can be as elusive as a Super Bowl ring.
Real Estate License
Most people who are buying or selling their home or condo will engage the services of a real estate agent. Real estate agents in most states are licensed and must adhere to not only state laws but federal laws as well. To get a real estate license in any state is no easy task and by passing the exam indicates the work involved and the level of professionalism of the person who has chosen this as their profession.
There are certain requirements to obtain a real estate license and most states will follow similar guidelines. Listed below are the most common requirements:
- You must be at least 21 years old.
- You must be a high school graduate or equivalent (GED)
- Successfully complete the pre-license 45 hour basic transactions real estate education course.
- Pass the state exam.
- Be sponsored by a licensed broker.
The first two of these requirements are self-explanatory but the rest need a little more information to understand if you are interested in getting a real estate license. The 45 day pre-license course is mandatory in some states. It will cover all areas of real estate transactions including financing, real property laws and ethics among others. Today the course can be completed a number of different ways but most commonly is done online. The next area that needs explanation is the state exam. State exams can be difficult and lengthy but are necessary to insure the professionalism of each agent. Once you have passed the exam you will need to be sponsored by a licensed broker in the state you intend to practice. This simply means that you will work under the umbrella of a licensed broker who is responsible for your actions. Getting your real estate license can be time-consuming, costly and no easy task but the benefits far outweigh the efforts.
Real Estate Market
Many buyers enter the real estate market when sales are slow and there is a glut of homes. Many times they will want to jump into the market, and there is nothing wrong with that, but you may need to show some restraint. Since most buyers are buying for themselves there can be a great deal of emotion involved. Sometimes knowing just when to jump in to the real estate market can save you thousands of dollars and make you feel really good about yourself for making not only a sound business decision but finding that home you desire.
They key to buying is doing some research before you make a decision on the area and type of home or condo in which you are interested. Today there are so many places to look that it can be confusing. Prospective buyers need to know where they can get the best information which often times is the internet. The internet has a plethora of information about the real estate market that otherwise was not available just a few short years ago. Today most real estate companies have websites which provide you with all the information you will need to make a good decision. Information from websites range from tips about how to make an offer and what type of financing is available and is best for you. You can get information about when the property last sold and for what price which can help you with that first offer. All in all, do your research about what is important to you and start the process of finding your dream home or condo.
Sotiraq Vando
OwnACondo.com welcomes Sotiraq Vando to our growing team of dedicated Realtors®, many of whom have earned the accredited buyer representative (ABR) designation.
Sotiraq Vando, in addition to being a civil engineer, has more than five years experience as a Realtor® and is a licensed real estate broker. He has qualifications in accounting and as a loan originator also. His specialties include:
- Condos
- Foreclosures
- Single-family homes
- Investment real estate
- Financing condos
- Rental properties
- Downtwon Chicago real estate
- Chicago North real estate
- North Cook County real estate
“I like to work with people and because of that, real estate has always been an interest of mine. I like working with people and finding a way to help them get their condo financing, even in difficult situations.”
Fluent in Albanian in addition to English, Sotiraq Vando is married with two daughters. He earned a degree in civil engineering from the University of Tirana (Albania) in 1977, and has several other professional certifications also.
“I am always learning and adjusting in this changing industry,” Sotiraq said, adding that he enjoys all the customer-focused aspects of real estate, from helping buyers find just the right property for them to preparing presentations and contracts. He said he is very proficient in using the Multiple Listing Service, allowing clients to narrow their search and save time and money.
You can reach Sotiraq Vando at svando@ownacondo.com if you have any questions or would like him to help you find your dream condo, an investment property, or any other piece of real estate.
Mortgage Payments
Having to make monthly mortgage payments can be very stressful for anyone buying condos or other homes. Worrying about a $200,000 debt, especially if you are just scraping by, can be a problem.
But there are ways to pay off your debt quickly and save on interest without really paying any more than you do now. Splitting the regularly monthly mortgage payments in half and paying that amount bi-weekly, or every two weeks is one option.
With 52 weeks in the year, that means you are making 26 half-payments, or 13 full mortgage payments instead of the usual 12. This way, you can pay off a 30-year mortgage in as little as 26 years. On a typical 30-year mortgage with a 5 percent interest rate, you can save tens of thousands of dollars.
Some lenders allow you to build this option into your mortgage payments, but be careful because there are often additional fees involved. With your monthly condo assessments and other costs, this is the last thing you want. These extra fees cab ve avoided by doing it yourself. Lenders don’t have a problem processing two payments per month, as long as the full payment is received by the due date.
Adding a bit more to your monthly mortgage payment is another way to save money in the end. You can do this simply by rounding up, so instead of paying $927 per month, make it an even $1,000 whenever you can afford to do so Every little bit taken off the principal helps, and it is something to consider when financing condos.
Mortgage Options
When purchasing a home most people take out a loan. The question that a typical homebuyer may run into is what type of mortgage option would be the best? The real answer, is the type of mortgage that fits your financial situation. There are many types of mortgage loans out there and they all mean different things. Understanding all of the terms of your mortgage options will save you from trouble down the road. Too many people chose an option that isn’t right for them and as a result they end up in foreclosure!
There is a Fixed Rate Mortgage option. This is a mortgage that maintains the same interest rate throughout the entire life of the loan. The loan doesn’t fluctuate at all. Depending on the economic times, the fixed rate usually comes in 10, 15 or 30 year terms. This type of mortgage is good for the home buyer who needs the peace of mind with paying the same rate every month.
There is also an Adjustable Rate Mortgage. Another name for this is an ARM. This type of mortgage has rates that often change according to financial indexes that are determined by the current market. The mortgagee must be prepared that the rate on the mortgage may change year after year. This type of loan works for a home buyer who is willing to take the risk in getting the lowest rate possible at the expense of risking a higher rate and higher monthly payments. People typically choose an ARM for the lower initial interest rate and because they do not intend to own the property long-term.
Many times home buyers are presented with the Balloon Mortgage Option. This is considered a higher risk than an ARM mortgage because there can be a large payment when the loan is due in full. For instance, you may pay low rates for many years, but then when the amount is due, a large chunk of money is needed to cover the mortgage. The life of the loan can either be 3, 5, or 7 year balloons.
There are many other types of loans in addition to the few mentioned here, but these are the most common options that mortgage companies offer to homebuyers as mortgage options. Understanding your options is of the utmost importance when purchasing a home. Knowing this information could save you from the risk of not being able to pay your mortgage because of unknown factors with your loan terms. Always be sure to research your options before making your next home purchase.
Closing Costs
Closing costs are something that must be considered when buying a condo or house, especially because they have been rising across the country in 2010.
However, many buyers, especially those going through the process for the first time, are not even sure what closing costs encompass. Essentially, closing costs are the fees that must be paid for items required by the lender as conditions of the loan. They include the cost of title searches, loan applications, recording the deed, appraisals, credit checks, homeowner’s insurance and mortgage insurance.
The total amount of closing costs vary because they are a percentage of the cost of the property being bought, usually between 3 and 6 percent. Prior to the closing, it is advisable to ask your lender for at least an approximate cost, so you will have an idea what to expect and will come prepared. In some cases, a motivated seller agrees to cover the fees for a cash-strapped buyer, but that doesn’t always happen.
Furthermore, the average mortgage closing costs have been increasing across the country in 2010, according to an online survey by personal finance company Bankrate Inc., which released its findings in August. For instance, the closing costs jumped 40 percent in Illinois in 2010. For instance, the origination and third-party fees on a $200,000 mortgage added up to $3,505 in the 2010 survey, up from $2,486 a year ago.
The story was similar across the United States, which saw, on average, a 36 percent increase in closing costs over 2009 numbers. Bankrate attributed one of the reasons for the increase to the new regulations implemented in January. Lenders now must provide an estimate of title and closing fees within 10 percent of what the final cost will be, or they will risk penalties. The regulations require more labor in getting a loan together, but they are meant to benefit people financing a condo by providing them with as much information as possible before the closing.
In the Bankrate survey, which assessed average closing costs in the 50 states plus Washington, D.C., Illinois ranked as the 43rd most expensive, and moved up to 31st with the increases this year. But still trails behind New York, which was found to be the most expensive, with an average fee of $5,623. The survey excludes property taxes, recording fees, homeowners insurance and prepaid items such as a partial month’s mortgage interest. It also does not include any discount points.
You want a Realtor with excellent negotiating skills to help you get the best deal possible. Because after all, if you have your heart set on buying a condo that you really like, you don’t want closing costs to be a deal-breaker.
Internships
Internships can be a great way for students to get an idea of what truly goes on within industries and companies. The internship experience can be a win-win for both students and companies where students gain experience, network with employees and managers who later could assist with career choices. Internship programs are a start in the decision-making process regarding lifelong career options and their importance should not be taken lightly. A positive for the company is to have the added assistance of young employees, meeting and reviewing possible full-time hires which contributes to the educational experience of the students who participate. These are just a few of the benefits of starting an internship progam.
Many different industries offer internship programs and students do not always need to major in the exact business type to gain experience and knowledge that will be valuable to whatever career choice they make. A good example is that most real estate companies offer no internship programs due to the traditional model of that industry. The industry is changing with new technologies and more and more companies establishing their niche markets enabling a variety of programs never before offered. Many of these real estate brokerages are entering into these markets with not only cutting edge technologies but non-traditional programs designed to segment the market to represent only one aspect of the transaction, specifically Buyer's Agency and Condomium properties exclusively . Today many real estate companies have embraced the buyer's agency concept and find that the general public is very accepting of this type of representation.
How does all this relate to internships? As stated earlier, you do not have to major in real estate or finance or other related fields to see the benefit of an internship with a real estate company. The technology available to real estate agents today rivals any type of sales industry anywhere. Interns can be part of the information technology field and be challenged far beyond what they imagined with customer relationship management, pipeline management and telephony technologies common now with most successful real estate companies. Communication and media majors can contribute to companies by helping in designing websites, analyzing sites for search engine optimization improving rankings and assisting less tech savvy agents the use of social media to improve their business. Many potential interns may think of a real estate company as sales-only but there may be more opportunities than expected.
Students interested in internship opportunities with OwnACondo.com are invited to call 1-866-696-2266 for more information.
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