Condos or Co-ops
When you are getting ready to buy condos or co-ops, particularly in a place like New York City where co-ops are so common, it is smart to consult a condo specialist Realtor® because these experts can alert you to the differences between the two, and all the pros and cons.
While Realtors® should be consulted to get the details, there are a few general points to keep in mind when thinking of buying a condo or co-op. First, while traditional condos are more common in Chicago, Miami and other cities outside New York, a majority of the multi-unit developments in the borough of Manhattan are co-ops, so there are a lot to choose from.
Also, when trying to decide if you have the down payment needed to finance your condo, or co-op, remember that purchasing a co-op often requires putting down at least 25 percent of the cost, and often as much as 50 percent or even the whole amount. Also, you must go through an interview with the co-op board of directors, who run the complex, which can accept or deny the application for ownership. This is because by definition, co-op buyers are buying a share of the whole building, rather than one unit in the case of a condo.
Many tax breaks are available to co-op owners that are not offered to condo owners. Once again, you should consult a professional to determine the details. And of course, make sure you have a healthy credit score, because that will be taken into consideration when taking out a loan in any case.
Whether you end up buying condos or co-ops, you will have to take into consideration the monthly maintenance fees, which they both have. The fees are used to cover the cost of general maintenance, groundskeeping, and general repairs in common areas of the property.
It would be advisable too, whether you are buying condos or co-ops, to ask for financial statements for the complex, to see whether there is enough money on hand for major projects such as roof replacement. Also, because all the expenses are jointly shared, all the property owners share liability also. Although it rarely happens, when an owner defaults, the other owners have to share the responsibility of covering those expenses.
Selling condos is usually easier than with co-ops, due to the co-op board having the right to interview and scrutinize prospective buyers.
Because co-ops have an untraditional ownership system, it may be harder to find financing. The board also may have rules for down payments, which you'll probably find less flexible than some mortgage lenders.
These are just a few of the things to look out for whether you are buying condos or co-ops, just to give you an idea of what to expect.
1963 Mortgage Interest Rates
You've probably heard it countless times in the last year or so: "Mortgage Interest Rates at Historic Lows!"
What does that even mean?
How about this perspective instead: "Buy a home with 1963 mortgage interest rates."
If you weren't around in 1963, or just don't remember it, well, we certainly know an awful lot of things were far cheaper back then, and mortgage interest rates were, too.
How about a 1963 Chevy Impala with a 327 V-8 engine and automatic transmission? Manufacturer's retail price new was $3,725.75.
Or two dozen oranges for just 89 cents? Gasoline for just over 25 cents per gallon? The price of real estate? The list goes on.
It's incredible to think that in 2010, mortgage interest rates are about what they were in 1963....the year President John F. Kennedy was in office and the year Dr. Martin Luther King Jr. delivered his famous "I Have a Dream" speech.
In fact, at 4.42 percent, average, for a 30-year mortgage, as reported by Fannie Mae, rates are actually slightly below what they were in 1963. That's pretty amazing. There's not much available at the same rate as almost 40 years ago, but 1963 mortgage interest rates certainly apply.
Should you buy a condo or house and take advantage of what could be once-in-a-lifetime low rates? It warrants careful consideration. In fact, one of our fellow bloggers just explored the topic in his post entitled "Why Should I Buy Now?"
Personal circumstances vary, of course. Generally speaking, if you don't have a property to sell first, you're in an excellent position to purchase a house, townhome or condo in the current economy because many sellers have lowered prices and/or provided incentives.
If you have a property to sell first, however, it's important to price it correctly and realistically to reflect the current market. Our condo specialist Realtors can assist with this. Be sure the property is up to date, clean, well-staged and with great curb appeal. Real estate sales may be down in the current economy but there are still plenty of properties bought and sold every day. It takes careful strategy to get it done, with the help of one of our professionals.
And if you're wondering where to find these great mortgage rates, we're more than happy to suggest a great resource, Bank of America. Whether you are looking for condo financing or financing for a house, investment property or other real estate, the people we've worked with at Bank of America are ready to talk with you about your needs. Click the link in the previous sentence to get started.
As you shop for the best mortgage plan for your needs, please know that mortgage interest rates available through lenders fluctuate weekly, sometimes daily, but the overall trend for many months now has been for these rates to be historically low. Interested in a 1963 mortage interest rate? Here's your chance!
What to Expect from a Listing Presentation
If you are not familiar with Real Estate, then you may not understand what is involved in a listing presentation. Although listing presentations may vary by Realtor, there is a list of things that should be covered in the presentation. Some of these items include explaining how the agent will prepare the property in order to market it, going over what marketing strategies will be used to inform the general public that the property is listed, and going over the listing agreement and explaining what it means. It is also a good idea for the Realtor to explain what happens after the listing agreement is signed.
It is important for the Realtor to prepare the property in order to market it. During the listing presentation the Realtor should make sure that the home is clean and if repairs and/or improvements are needed, that they are taken care of. The Realtor may suggest trimming trees, adding some landscaping or painting some walls. The idea is to make the property as attractive as possible. Once the property is ready, then the Reator will want to come over and take pictures of the property. He/she will also want to take measurements of all the rooms and gather the information needed to list the property on the MLS. Once the necessary information is gathered, the Realtor will want do a competitive market analysis to see what would be the best price to market the property.
The Realtor will want to explain to the seller how he/she will be marketing the property. The agent will explain what websites, signs, open houses and/ or other forms of marketing that will be used. It is important for the seller to understand the efforts the Realtor will make in order to sell the property.
After the Realtor explains what mediums will be used to market the property he/she will want to sit down with the sellers/owners and go over the listing agreement. The Realtor will go over all the details of the agreement and have the sellers sign and initial where needed. This is also the time where the agent will guide the sellers as to what price would be the best to market the property. The agent will use his or her expertise and knowledge and the information from the competitive market analysis to suggest a listed price. Once the price is agreed upon and the listing agreement is signed, the agent will then send the listing agreement and disclosures to the broker. The process of what happens after the listing presentation should also be explained to the seller/owner.
For instance, once the broker receives the listing agreement, the broker/owner will review it and sign it. The broker is responsible for getting the listing agreement back to the Realtor as soon as possible, so that the agent can not only provide the seller with the contract but also list the property on the MLS. The property needs to be listed on the MLS within 5 days after the broker signs the agreement. This begins the marketing period for the listing of the property.
Tips for Putting Your Home on the Market
Tips for Putting your Home on the Market
Selling your home can be a stressful process. Many people do not realize the work that goes into putting your home on the market. The reality usually sets in after the seller has met with a real estate agent and the agent has given them a different perspective on what the seller thought was the perfect home. It is very important to know some tips for selling your home.
Make sure to hire a reliable real estate agent. This means, someone who will work hard for you and be available to you when you need him/her. Also, see if you can get an agent through a referral. Start asking around and see what people have to say. This will give you confidence when choosing the right realtor.
You also want to make sure that you are not wasting any time on buyers who are just looking or are not interested. Too many times, sellers and agents spend many hours and a lot of energy trying to convince people to purchase when they are just not ready. Focus on the motivated buyers. Work with your agent to determine who the motivated buyers are. Maybe the buyer is on a deadline, this includes people who are relocating for a job, investors who are on tax deadlines, college students and staff who need to get in before the school year, etc. I think you get the point. Find out more about the buyers who are viewing your property and see what their situation is.
When putting your home on the market, it is a good idea to make sure that you price it to sell. A home that is priced too high for the market, will almost never sell! Make sure to price it low right off the bat. If you start high and do small price increases, you are just wasting time. Price it low, get some activity. If you do it right, you will price low and sell high!
It is always a good idea to have good curb appeal. This includes, sprucing up the landscaping, cleaning the gutters and touching up the paint. You want to keep the buyers safety in mind by making sure the stairs and walkways are clear and free of clutter. Speaking of free of clutter, always remember less is more. The less furniture and décor you have, the bigger the space feels. Having just the right amount, will give any place a cozy and spacious feel! Again consulting with a realtor when putting your home on the market would be a good first step as they will assist you with letting you know how to prepare before selling your home. Go to OwnACondo.com to learn more about putting your home on the market!
Real Estate Jobs
Real estate agents are licensed professionals requiring completion of initial educational requirements and to maintain their license they are required throughout their career to take continuing education courses. It is not an easy task to become a licensed realtor and to succeed requires time, energy, creativity and money. Most real estate agents are independent contractors which means they pay their own expenses no matter if the market is booming or bust. As with most parts of the country real estate jobs are currently plentiful but opportunities are there for the taking if you have that entrepreneur spirit that most successful real estate agents possess.
Most people think real estate agents do nothing all day but drive around in their big cars, show a few homes, go to the country club and pick up a big check every few weeks. Nothing is further from the truth. The true job description of a successful real estate agent is longer than most CEO’s of major corporations. Agents are small or big depending on their success, independent business owners who must be counselors, financial experts, expert negotiators, educators, marketing specialists, public relations experts, and more often than not a chauffeur. When it comes to buying or selling real estate there is little a real estate agent does not do for their customer or client.
Real estate jobs in major metropolitan areas offer their own set of challenges and real estate jobs in Chicago are no different. Chicago is approximately 228 square miles covering over 77 different neighborhoods. As an agent how do you choose what areas in which to work? Obviously you would like to work close to home but that is not always possible or the best choice. Agents many times travel long distances and work long hours to service their customers and clients. Real estate agents derive most of their business from friends, family, and the referrals they generate which means they will list or show property over the entire metro area as well as surrounding suburbs and counties.
The real estate business can be a rewarding career but not for the faint of heart. Real estate jobs offer many challenges and opportunities for those who possess that entrepreneurial spirit and are willing to put in the time and effort required to be successful. For those of us who have made real estate a lifelong career there is no other job or career that can compare.
Choosing a Realtor
There are many factors that need to be taken into consideration when you are choosing a Realtor to represent you. In making your decision to work with an agent, the first question you should ask is whether the agent is a registered Realtor. The term Realtor is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors and who subscribes to its strict Code of Ethics. By knowing whether or not he/she is a realtor, you can conclude that the agent has to lawfully abide by all the rules and regulations within Real Estate Law.
When choosing a Realtor, you also want to know if the agent has an active real estate license in good standing. You can always check with your states governing agency to get this information. It is also important to know if your agent belongs to the multiple listing service. For either buyer or seller, this information is important to know because this explains how much access the realtor will have to the current market.
Knowing whether or not real estate is the agent’s full time career is beneficial as well because it allows you to assume that full time agents usually dedicate their days for real estate activities. There are some agents who only do Real Estate part -time, which could limit their availability they may have for you. For the most part full time agents are well informed as to what is going on in the market and they seem to have greater availability in terms of showings and/or marketing.
You may also want to find out if the agent holds any specific real estate designations. What do they specialize in if anything? Have they furthered their education in any way in the real estate arena? This could be another measure as to how serious the agent may be about Real Estate.
In exchange for your commitment, how is this agent going to help you accomplish your goals? If you are a seller, this could include knowing what the agent's marketing plan will be. If you are a buyer, this could include what their availability is like for showing homes; also what properties do they have in mind that meets your expectations.
The bottom line is that when choosing an agent to work with you in a real estate transaction, it is important to know the specifics about the agent and interview them to make sure that he/she is what you are looking for.
