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2Sep/100

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!

Filed under: Condos No Comments
31Aug/100

Condo Swapping

Condo swapping by vacationers is becoming more popular and easier to do with websites such as Craigslist and others with notice boards that can easily put people in different states or countries together.

People who want to save money by avoiding hotels on vacation, but still stay somewhere comfortable, are some of those most interested in condo swapping. They can now search online for people in their target city who want to swap vacation condos, or homes of any kind, for a week or a month, or however long they decide together. These types of condos can be found in cities around the United States, and indeed the world. The two parties can find each other online, make the initial contact online and then call each other and arrange particulars.

In addition to the vacation aspect of the agreement, some people who advertise themselves as willing to swap homes want to do it on a permanent, or at least semi-permanent, basis. For instance, due to the soft real estate market, some people moving to other cities would rather , thinking they would rather hold off until the market improves.

Condo swapping is less costly than renting condos, since depending on whatever agreement is struck, no money might change hands at all. If two people are taking their vacations at the same time, they might just agree to switch houses for an allotted period of time. 

Of course, the condo swapping can be done between vacation homes, or primarily residences. Some people with second homes, or vacation homes in areas popular with tourists regularly offer to rent their homes. Rental condos are often found in luxury condo developments, where owners can put their condos on a list that can be used as rental condos while they are not

Besides the cost savings, another advantage of condo swapping is the fact that it can bring people together from places as diverse as Guatemala to Grand Junction, Colo. And you can experience living in a real residential area, instead of just in a downtown tourist center where most hotels are. While the condos available for swapping are often are located in popular, they can be found in out-of-the-way places too, where hotels are few and far between.

Condo swapping is more personal than using rental condos,   or “condotels,” which are condos, often in luxury high-rise complexes, that are made available to rent as hotel suites when the owner is not living there. But unlike with condo-swapping, the owners and renters have no contact.

30Aug/100

Why Should I Buy Now?

All we hear right now is about unemployment, health care reform and bailouts.  That doesn’t mean there has not been talk of the real estate market and what is happening in that part of the economy.  The question I am hearing more each day is, why should I buy now? Depending on who you listen to the market may or may not be at its bottom and who in all reality can forecast it.  Many of those so-called forecasters were the ones that missed all aspects of the economy as it was tumbling downward.  And down is not always a bad place to be since the only other way is up.  Whether we are at the bottom, close to the bottom or on our way up it is a good time to buy your home or condo.

Why should I buy now? There are several factors that are in your favor by acting now.

Pride of ownership is the number one reason people want to buy a home.  Home ownership offers you and your family a sense of stability and security while making an investment in the future.

Home ownership is currently one of the best tax shelters available with the volatility of today’s stock market.  Mortgage interest is fully deductible on your tax return which lessens your tax burden year after year.

Mortgage reduction builds equity in your home.  Each month you make a payment the principal portion of your loan goes down and as the principal goes down and the price of your home goes up, you are building equity or more asset value.

Another reason to ask yourself why should I buy now is interest rates are lower than they have been in years.  Do you realize that you may be able get a 30 year fixed rate for less than 5% which makes a purchase start to look very appealing and if you tie that with anticipated inflation you will be paying back the loan with devalued dollars meaning you are getting more for your money than when you started. That means you can afford more home or if you want you can buy a more reasonably priced home and keep the payments low, maybe even less than you are paying in rent.  Would you have imagined several years ago that you could get free money and a great interest rate on buying a home?  If you are like most of us you would have laughed us out of the place, but it is happening now.  We would never have guessed it, just like we are never going to guess the bottom of the housing market.  So just do it!

28Aug/100

Rethink Real Estate

Earlier this week, Janice Zeman,  one of OwnACondo.com's leading condo specialists, was working on some personal marketing and said she was suggesting that people rethink real estate in our current economy.

We very much liked the idea and asked her to explain.

“If you’ve got real estate to sell, it’s important to rethink how to get it done by using the services of a company that does far more than only stick a sign in the ground, put the property on the Multiple Listing Service and hope for the best,” she said.

Janice is a Realtor® of long experience and many, many satisfied clients to her credit. Neither she, nor OwnACondo.com, ever rely on just the minimum effort, yet that's what so many consumers receive from the Realtor® they partner with, even in these challenging times.

“My main objective is to assess the best plan for every individual need,” says Janice. “That can include a customized, traditional sale; a short sale or an auction, depending on the property and the needs of the client."

"A lot of consumers might be surprised to learn that auctions will soon account for one-third of all real estate sold in the U.S.,” Janice explains. “Real estate auctions are becoming hugely popular for buyers and sellers alike.  I can help people with that.  That's one example of what I mean when I urge people to rethink real estate. ” 

Short sales are another way to rethink real estate. A short sale is a transaction in which a bank agrees to accept less for a property than what is currently owed. Banks may do this to avoid having to take the property back as a foreclosure, which can be a very costly process. Short sales allow the current owner to get out of a difficult situation and can provide a buyer with the opportunity to obtain a property at a reduced price.

But auctions and short sales aside, Janice takes particular pride in servicing her clients with traditional listings by using custom photography, virtual tours and general high level of attention to marketing and servicing.

“I’m a counselor for my clients,” she says. “I’ll make sure one of our many services is the perfect fit. There’s really no other company that offers so much at such a high level.”

Janice is an Accredited Buyer Representative (ABR), a designation earned by Realtors® who meet specific educational and practical experience criteria. She covers most of the Chicagoland area but specializes in Riverside, LaGrange and other communities nearby. She likes to rethink real estate and we like that about her!

27Aug/100

Contingencies on a Contract

Purchasing a home always involves reading through the contract and signing on the dotted lines. Most people that purchase a home, surprisingly do not read through the whole contract. They just seem to trust the fine print and the person guiding them through it. Most contracts are pretty standard and most people have a general idea what it contained. When reading through a contract, it is a good idea to know not only what the contingencies are, but also what they mean.

In every contract, there should be an attorney review. Typically the period is 3-5 days on a standard contract. This period is intended to give the buyer an opportunity to secure an attorney and have the attorney look over the contract. The attorney has the right to accept the contract as is or write in some modifications to the contract. The contract is still considered an offer at this point so if they modifications are not accepted then the offer becomes null and void. It is always a good idea to have an attorney review the contract before moving forward on a large purchase such as a home. This review period is put in place to protect the buyer and also to allow the buyer to rescind on the offer if need be.

Another contingency that can be found on a contract is the financing contingency. The amount of days the buyer has to secure a loan can vary per contract. The buyer has the responsibility to try to not only get pre-approved but also obtain a loan commitment letter as well. This loan commitment letter locks in a rate for a guaranteed period of time and also proves the buyer can qualify for the purchase of the home. If the buyer is unable to obtain financing for the home than the contract becomes null and void and all earnest money (if any) is returned.  This contingency is put in place to protect the buyer and the seller.

The inspection contingency is not found on all contracts but it is a good thing to have on a contract. Inspections can make or break a deal. If the inspection does not go well then the buyer and seller have a few options. They can come to an agreement to either fix the problems or take more money off the offer so that they buyer can fix the items on their own or If the buyer does not want to fix the issues or the problems are too serious, than again the buyer has a right to rescind the offer.

There are a few other optional contingencies on a contract, such as a house to sell contingency. This is put in place if a buyer has to sell their home before the purchase of the new home. If someone else is interested in the property and they put an offer on the place without the house to sell contingency, then the buyer with the contingency typically has 72 hours to purchase the home.

25Aug/100

Office condos

While the U.S. real estate market in general continues to remain soft, office condos represent one niche that is still doing well, according to Realtors in New York and other cities who have reported increased sales in that area, particularly to foreign business owners who want to take advantage of dropping property values.

Newspaper reports in New York and elsewhere have included anecdotes from Realtors® asserting that sales of office condos has remained steady or even increased, while other areas have slumped. Also, they report getting a lot of business from international clients, especially from China and other Asian countries with booming economies. The company owners want to buy condos

 in commercial buildings rather than just rent the office space, especially considering the reduced real estate prices, which are said to have dropped as much as 40 percent over the past year in Manhattan, for instance.

Some companies just like the added control and security that comes with owning office condos rather than renting an office. They point to benefits such as being able to budget for the mortgage, and knowing what the property will eventually increase in value, and turn a profit when it is sold.  

Realtors® have also noted some unusual requests made by clients. But in this type of market, condo sellers are willing to be flexible in many ways. For instance, some Chinese business owners and others follow the guidelines of feng shui, an ancient Chinese system of aesthetics that takes astronomy and geography into consideration when designing work space or living space in order to promote positive energy, or ch’i.

Feng shui is widely used to orient buildings of all kinds, including residential and commercial condos in a certain pattern, taking into consideration local features such as bodies of water or stars. The practice has gained in popularity, particularly in the United States, and followers decide where to place beds, desks, mirrors and other elements of existing offices and homes depending on where the windows and doors are, and following feng shui principles.

 Numbers often come into play too. Some buyers who focus on feng shui or numerology want their businesses to be on certain floors, and avoid others, depending on the floor number. Therefore, companies might want to buy office space on widely separated floors, rather than nearby ones, if the numbers are not right.

People selling condos will work with the serious buyers as much as possible too, sometimes literally “working the numbers” to ensure that the sale goes through. For instance, one Realtor® recalled having a buyer who was interested in buying two office condos, but only if the price was knocked down from $550 per square foot, to $548, because he did not like the other number combination. He said he would make up the difference in another transaction.

23Aug/100

Real Estate

There have been so many changes in the real estate market the past decade it is almost too much to keep up with.  It is not only what has been going on regarding buyers and sellers but real estate agents today are much more sophisticated than ever before.  The one area that has had the most impact is technology which has completely changed how realtors today conduct their business.  The internet has become an integral part of every company and agent in which to conduct their business.  It allows agents and companies to spread themselves and the marketing of properties to a whole new level.  Creation of websites allows marketing to be conducted 24/7 reaching many more customers at times the customer wishes to access information important to them.  It is a tool all agents and companies should add to their tool box but it will never be the magic answer to successfully selling real estate.  The internet alone will not make a unskilled agent a skilled agent.  Success or failure in real estate relies on many factors.

One of the most important skills needed today for successful real estate agents is time management.  Time is something we can never make but we can certainly make money.  Most agents feel their time management skills are adequate but if they to take a look at what they do each day and each week they would be surprised to see how little time is spent doing what they need to do to make a living.  Too many agents do not plan their days as any other business requires of their employees and it is relatively simple.  The last thing before you finish your day is set your priorities and plan tomorrow.  Sound easy, it is.  When you have your day planned and written out it is much easier to stay focused on what needs to be done.  Start with your first priority and stay focused on it till you have finished it.  Then move on to the next until your schedule is completed which does not always mean you will complete all your scheduled events each day but at least you are managing your time and determining what priorities will make you successful.   Real Estate agents today cover more ground and are required to work with a greater variety of customers than they have in the past.  It is not uncommon for agents to cover vast geographic areas whether they are in an urban or rural setting so managing your time effectively can mean more sales and more money.

20Aug/100

Mortgage Rates are Down Again

A bittersweet aspect of today's economy is that while certain indicators show little or no growth, mortgage rates are down again,
averaging 4.42 percent for a 30-year fixed rate for the week ending August 19, 2010. That's potentially great news if you want to buy a condo, house or other real estate.

The figure was arrived at as part of a survey of lenders released by Freddie Mac, the second-largest U.S. mortgage finance company. Freddie Mac began its surveys in mid-1971 and the latest figure  is the ninth consecutive weekly low. Last year at this time, the rate was 5.12 percent for a 30-year fixed mortgage, according to the survey.

Also dipping to a record low was the 15-year fixed rate, which came in at 3.90 percent. It is the sixth consecutive weekly dip for the 15-year rate.

These new lows for 30- and 15-year mortgage interest rates mean a lot not only for buyers in need of a new mortgage but for people looking to refinance a home, too.

What's bittersweet about the fact that mortgage rates are down again?  Well, with the economy sputtering and people concerned about jobs and the future,  it may be difficult for some to take the plunge for that first or new home, or even that refinance, despite the super-attractive rates. It can also be more difficult to actually qualify these days for a new loan or a refinance. Lending standards have tightened up considerably recently.

However, if you're looking  to finance a condo or obtain a refinance, we have a great resource for you: Bank of America. Click that link in the previous sentence to learn more about why we're associated with Bank of America. It's a lender with great rates, a nationwide reputation and local staff that has been extremely responsive to our clients.

Bank of America offers 30-year fixed rated mortgages, 15-year fixed rate mortgages, adjustable rate mortgages and other types of loans. Be sure to check out Bank of America via that link and drop them a line with any questions you may have.

Don't pass up the current opportunities for ultra-low mortgages. If you are intent on getting that first-time condo or house and have no existing home to sell first, you are in a strong position to take advantage of a distinct buyers market that has resulted in lower prices and/or  increased incentives than in the past. And if you do have real estate to sell, remember to seek the assistance of a Realtor®, like the specialists at OwnACondo.com. They'll help you price it competively and market it so you can move up and on to a great new place with a great new loan now that mortgage rates are down again.

 

Filed under: Condos No Comments
18Aug/100

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.

17Aug/100

Apartment Rentals

People considering buying apartment buildings as an investment will be encouraged to hear that while sales of condos and other real estate slowed due to the downturn in the economy, apartment rentals are showing signs of recovery, despite the spike in unemployment and other factors.   

That could explain why people are looking for rental condos too. For instance, the analytic firm of MFP Research found that the number of occupied apartments increased by 215,000 in 64 major U.S. markets in the first six months of the year, according to analytic firm MFP Research. That is almost twice the number of occupancies added in all of 2009.

The National Multi-Housing Council, a trade group for the nation's largest landlords, agrees that vacancy levels are improving. Its most recent quarterly index of occupancies is the highest it has been in four years.

Chicago-area landlords also are doing well, according to statistics that show the suburban vacancy rate remaining about 5.5 percent, and about 6 percent in the city. This is an improvement from 9 percent vacancy rates several years ago, and both sectors of apartment rentals are low enough to be considered a balanced market, according to many observers.

Ordinarily, when unemployment levels are as high as they are, apartment rentals would be expected to decrease because college graduates and other young people looking for jobs are not in a position to move away from home and get their first apartment. But there are other economic factors contributing to the evident uptick in renters. These include the fact that people do not feel secure enough to invest in a condo or house due to the state of the market, so they continue renting. Also, people who have experienced a home foreclosure or short sale have now returned to renting condos and apartments.   

The fact that on average, monthly rents being charged have not increased too much in recent years, and have even remained level in many areas, also encourages more people to rent rather than buy. Then the supply issue must be taken into consideration also. In Chicago, the number of new rental units has increased only slightly in recent years, according to industry observers, who say that practically no new apartment buildings have been built in the Chicago suburbs.

Because apartment rentals have been going up, this might be a good time to invest in apartment buildings. And anyone who wants to use renting as a steppingstone to ownership can look for rent-to-own programs, which many condo owners offer.