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Before You Buy Your Next Condo. Special Assessment Warning

November 18, 2011 By Leave a Comment

2 Before You Buy Your Next Condo. Special Assessment Warning

I noticed a disturbing trend in Kirkland this week.  3 condo projects are doing extensive work on their siding.  When ever a condo building goes through a siding replacement, it can be devastating for homeowners. The typical protocol is to use a combination of reserves and a special assessment.  The latter can give a homeowner nightmares. Just this past year, I’ve worked with multiple sellers that have had to pay up to $35,000 for their share of a special assessment. I can’t stress enough how important it is for condo buyers to do their homework before they purchase. Working with a knowable broker in the condo market is imperative. Once you find a unit that you like, reviewing the re-sale cert and studying the reserve study is critical in avoiding a massive expense. There is nothing worse than buying a condo just to find out months later that you are required to participate in a special assessment. Do your homework.

1 Before You Buy Your Next Condo. Special Assessment Warning

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3 Tips If You Are Buying A Condo In 2012

November 2, 2011 By Leave a Comment

Bellora 1001 e1320255592744 3 Tips If You Are Buying A Condo In 2012

Buying a condo is a daunting experience.

At times fun, but often, frustrating, stressful and time consuming.  To help you get started, I thought I would provide a few tips that will make your buying experience a successful one.

NEIGHBORHOOD FIRST- One of the biggest mistakes that condo buyers make is choosing the unit before they choose the neighborhood. It is easy to get caught up in the romanticism of buying a new place.  In doing so, buyers have a tendency to shop for the right home, before shopping for the right hood.  In my mind, the latter is always where you start and the former will come with time.  There are great units in every neighborhood. So, its important to get to know your neighborhood first. Spend an entire day walking around. Check out the grocery stores, the movie theaters and the coffee shops.  Make sure you vibe with your neighborhood and imagine yourself living there; not just now, but 5 years from now.  It is easy to act quickly when you find “the place of your dreams”.  With that being said, acting with emotion instead of reason can lead to poor decisions. Shop the neighborhood first and you’ll find specific attributes that make the neighborhood unique.  These can include, proximity to dining, entertaining, employment, public transit and future development.  Shop the neighborhood first; you’ll benefit immensely.  Trust me.

FOCUS ON QUALITY- One of the biggest advantages you have in a depressed real estate market is the ability to buy quality.  Many of you have heard me say this before.  In a down market everyone is selling at a discount and often a loss.  TAKE ADVANTAGE.  One of my favorite quotes is from the legendary investor Warren Buffett, he says when investing, we should “Be fearful when others are greedy, and be greedy when others are fearful”. We have to be aware of the discounts sellers are providing as they re-balance their portfolios and fix their balance sheets from the recession. In order to really take advantage, I think its a “must” to recognize what makes a opportunity/building great. I like concrete and steel buildings.  There is a quality of construction, noise reduction and minimized risk of construction deficiencies.  For those reasons, there is a better re-sale value. Get an expert opinion, focus on quality and take advantage of the times.

UNIT FOR NOW, UNIT FOR LATER – Do not get caught up in the emotion of condo buying.  Think and act like a shrewd investor.  Focus on the functionality of the unit.  Does it work for most people?  Will you be able to sell it to others when you move out?  How does it fair compared to neighboring properties?  Do I have the best floor plan in the building?  What are the “it factors” (view, upgrades, location in the building, unit size etc…).  These are all important elements when choosing the right unit.  If you think about your ability to sell the unit just as much as your ability to live and enjoy the unit you’ll be better off.  At a time like this, when units are still on sale, it is your opportunity to focus like a seasoned investor.  If you do, you will reap the rewards.

Buying a condo can be challenging.  There are so many factors that go into buying a great unit.  Focus on these 3 tips as you start your search.  You’ll be thankful that you did.

Need more advice?  Contact us.  

 

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Filed Under: 3 Tips Buying In 2012, Buyer Tools, City of Bellevue, City of Seattle, Downtown Bellevue (MLS Area 520), Downtown Seattle (MLS Area 701), Home, In the news, Market News/Trends, Puget Sound Region, The UCS List, The UCS Street Beat Tagged With: , , , , , , , ,

5 Tips For Buying Condos In A Down Market

December 29, 2010 By Leave a Comment

rsz buying real estate the right way 300x175 5 Tips For Buying Condos In A Down Market

In my opinion, buying a condo in a depressed market is an opportunity of a lifetime. Follow these 5 simple tips to ensure you make the best decision when buying your future condo:

NEIGHBORHOOD FIRST

Everyone has heard it before; Location, location, location.  It is important.  In fact, choosing the best neighborhood for your lifestyle now, and what it might look like in the future is imperative.  Here are some suggestions for that will help you indentify the best neighborhood for you:

  • Use the Walkscore.  Go to walkscore.com—->Add the neighborhood—->Review the amenities map.  This will show you the exact locations of grocery stories, police stations, movie theaters, parks, coffee shops, transit locations and restaurants.  Remember that you will live in this neighborhood for years.  Do your homework.
  • Look up the neighborhood on Facebook.com. Many Seattle neighborhoods have their own Facebook page (example: South Lake Union). This is great way to get to know your future community.  These pages often include, new and upcoming events, community service information and fun facts and review.
  • Go to the city buildings of the Chamber of Commerce.  A local Chamber, will have neighborhood information, new development plans for multi-family and retail, and some of the best resources for the “future” of any given city.  You may want to look for new grocery store developments, new public transit routes and public park information.  It may also give you an opportunity to see if there is any new buildings that could impede your views from certain buildings in a particular neighborhood.

FOCUS ON QUALITY

In a down market the worst things you can do is focus on just price.  Many buyers get excited about the best priced condos and not the “best” condos.  There is a big difference.  In a recessionary market, almost all prices come down.  This includes the best buildings in a particular city.  I try to have my clients focus on the Big “5″.  Find the best 5 buildings in your market and focus on finding the right unit when it comes up.  Don’t be tempted to buy a unit in an inferior building just because of price.  You will regret not taking advantage of the market conditions when you had the opportunity to own in a much better building.  In order to find the Big “5″, do your research.  Read blogs to understand what each building offers and why it makes it the best.  Here is an example of a property review that you can find on our site (Market Place North)

AMENITIES RULE

Whether or not you like amenities, most people do.  When you decide to sell your unit down the road, you’ll want to make sure it appeals to as many people as possible.  More amenities, equal more buyers.  Think of it this way.  Let’s use the example of Seattle condo buyers who have a dog.  If a neighboring building has a dog walk and yours doesn’t the owners that have a focus on “Fido” the family wonderdog, might choose to purchase the other unit.  This goes for rooftop decks, movie theatres, fitness studios, owners lounges and more.  Focus on amenities and the buyers will focus on you.

LOOK FOR THE “IT” FACTOR

The “IT” factor are those qualities in a unit that make “IT” incredible.  It could be the big view, a spacious kitchen, a large deck, custom lighting/entertainment or a commercial appliance package.  The “IT” factor is important in a down market because we have opportunities to find some of the best units in the city for much less than market value.  Buying in a depressed market gives buyers an unprecidented opportunity with low rates, bottom line pricing and diamonds in the rough.  Finding a killer unit that has “IT” can be a pivotal role in gaining equity over the years of ownership.  Finding “IT” can also help you sell your unit in the future for top dollar.  Focus on “IT”.

DON’T LOOK BACK

Buying in a down market will take risk.  You have to believe that the upside will ultimately outweigh the downside.  There are no quarentees.  We all know that is is much easier to buy high and sell low.  This is because, our human nature is to follow the actions of others.  My suggestion is to go against the grain. We want change our mentality.  We need to take risks in buying low and selling high.  Take a chance, and remember “Don’t Look Back”.

These are just a few tips on buying in a down market.  If you have any questions, don’t be afraid to ask.

Jeff Contact Us 5 Tips For Buying Condos In A Down Market

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Filed Under: Buyer Tools, Home, Market News/Trends, The UCS List Tagged With: , , , , , ,

5 Steps To Leasing Your Condo

October 20, 2010 By Leave a Comment

Picture2 5 Steps To Leasing Your Condo

Renting your condo?  Try these 5 steps to ensure you stand out when being compared to other units:

Set The Right Rents

Rents  will vary depending on location, the building type and available inventory. The key is to “never” try to set your rents too high.  You should try to rent your condo at similar rates to other condos of the same product type. A rental analysis is important.  If you can determine what other “comparable” units are renting for, then you are taking the right approach to pricing.

Take Great Pictures

Dark, dreary photos are the best way to ensure that your condo stays on the market for months.  Bottom line is, we are a visual society.  We trust that what we see is what we get.  So with that in mind, doesn’t it make sense to take professional photos?  There is a cost associated with it, but ultimately, if it saves you months of sitting on the market, it will seem like a minor expense.  Many leasing services, like our own (UCS Leasing Service) will provide this as part of the contract.  Photos are the most important element in establishing the level of traffic needed in order to find your perfect tenant.

Get Social With Your Advertising

Social media should be your focus when advertising your listing.  Post your condo for rent on Facebook, Twitter and your blog if you have one. Don’t overdue it, but Social media is a powerful tool to get the message out.  The more people that see your listing the better.  Who knows, maybe a friend from college or a co-worker was looking for the exact place that you are trying to rent.  Don’t get lost among the thousands of other condo rentals in your city.  Get Social!

Syndication

Online syndication is the new classifieds in the rental business.  For example, Postlets.com will help you build your ad, create a live link and will then syndicate your new listing to services like FrontDoor, Google Base, HotPads, Myspace, Oodle, Trulia, Twitter, Vast and Zillow.  Why is this important?  Why not. Advertising your listing on all these different sites might give you the edge over your competitors.

Be On The MLS

In the greater Seattle area there are over 26,000 MLS members.  When renting your condo or home, I think its imperative to be listed on the MLS.  Trusting Craigslist and other listing services simply is not enough.  If you are looking for top dollar, make sure your home is seen by as many prospective tenants and brokers as possible.

Renting your condo can be stressful.  If you take the time to follow these 5 simple steps, I think you will find success.  Good luck!

UrbanCondoSpaces.com & Jeff Reynolds practice full service leasing.  If you ever need assistance in renting your unit, take a look at our service and contact us.

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Filed Under: 5 Steps To Renting, Buyer Tools, City of Bellevue, City of Seattle, Downtown Bellevue (MLS Area 520), Downtown Seattle (MLS Area 701), Home, Market News/Trends, Rentals, Renting/Leasing Tools, Seller Tools, The UCS List, UCS Condo & Home Leasing Service Tagged With: , , , , , ,

Is The Rental Rate Too High? Make An Offer.

September 23, 2010 By Leave a Comment

1521.Pictures 300x202 Is The Rental Rate Too High? Make An Offer. bagley.exterior 150x150 Is The Rental Rate Too High? Make An Offer. photoGallery051 150x150 Is The Rental Rate Too High? Make An Offer.

Ever wonder if a landlord would reduce the rent if you made an offer?  Let me answer that question for you; YES. Keep in mind that lease rates for a condo, home or townhouse are typically not set in stone. Depending on the situation, owners will often negotiate on price and will sometimes consider a free months rent or reduced deposits.

Bottom line is; if you have found a place that you must have, and it is just above your payment threshold, make and offer!

If you have any questions about leasing a home feel free to contact us!

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Filed Under: Buyer Tools, Home, Renting/Leasing Tools, The UCS List Tagged With: , , , , ,

The Seattle Condo Map

September 6, 2010 By Leave a Comment

Screen shot 2010 09 05 at 4.21.08 PM2 e1283838870772 300x285 The Seattle Condo Map

I just finished building The Seattle Condo Map.com and here is why…..

  1. We live in a big city.  There are 7-8 distinct neighborhoods in downtown Seattle alone.  I’m trying to help by simplifying the process
  2. There is a lot of information about condo buildings and not enough information on locations and neighborhoods.
  3. Seattle buyers need a better resource to simply “re-search” their purchase.
  4. As buyers we need to know how a building and a neighborhood might fit our lifestyle.
  5. I want to share my knowledge about this market. I have learned a lot over the last 7 years and I intend to help others along the way.

So, here is how it works:

Go to The Seattle Condo Map.com.  These are you choices:

  1. View Seattle condos for sale.
  2. View each neighborhood with our Seattle Neighborhood Map.
  3. View individual Seattle condo projects specifically by neighborhood. (Capitol Hill, South Lake Union, West Edge, Denny Triangle, etc…).
  4. Read about 10 things to do in Seattle to get to know the city.
  5. Read about UrbanCondoSpaces and ideas about building The Seattle Condo Map.com.  We are passionate about sharing what we know.
  6. Contact US!  I want nothing more than to share my knowledge of the market with you.  Ask great questions and expect great answers.

Here is an example of our two featured maps:

SEATTLE CONDO MAP

Seattle Condo Map

SEATTLE NEIGHBORHOODS

Seattle Neighborhood Map

Enjoy the site and please continue to support the blog!

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Filed Under: City of Seattle, Downtown Seattle (MLS Area 701), Home, In the news, Market News/Trends, The Seattle Condo Map, The UCS List, The UCS Seattle Condo Map Added To The Blog Tagged With: , , , , , ,

The UCS Seattle Condo Map Added To Blog

August 26, 2010 By Leave a Comment

Screen shot 2010 08 26 at 7.54.44 AM1 1024x640 The UCS Seattle Condo Map Added To Blog

So, I ‘m really excited to share that I have just added “The UCS Seattle Condo Map“, to the front page of the blog.   Although it is still a work in progress, I’ve spent long hours placing our logo Circle Medver2 e1282834855883 The UCS Seattle Condo Map Added To Blog over each major condo location in Seattle.  On some locations, I have added building descriptions, websites and project reviews.  Most if not all locations have a picture of the project.

This is a great tool when doing your research for your next unit or something that you can share with friends and family.  Check it out and let me know what you think!

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Filed Under: Buyer Tools, Home, The UCS List, The UCS Seattle Condo Map Added To The Blog Tagged With:

A 24 Hour Multiple Offer Nightmare

June 16, 2010 By 1 Comment

signing contract 300x230 A 24 Hour Multiple Offer Nightmare

I was here (at my desk) Sunday night until 2am.  Two friends of mine were writing an offer for their first home.  They left my office around 10:30pm. I prepped the documents, e-mail, faxed and texted the listing agent to make him aware the offer.  I went home around 1:30pm.  Just hours later as I was getting ready to go to work and I received an e-mail about another offer coming in on the same townhome that my clients wanted to purchase.  I had instant flashbacks to 2005/2006 when this happened all the time!

What a nightmare.  When it was all said and done, the other offer ended up writing an escalation clause that would have increased the price $20,000 more than what the seller was asking.  In addition, the offer was “all cash” and a very quick close.  It was painful and disappointing to tell my friends that they lost the place.  With that being said, we were back over at the homes tonight.  They picked out a new unit and we wrote another offer.  They left at 10:30pm, and I’m still here at my office.  I’m hoping for a better result tomorrow when I hear back from the listing agent.  I can’t handle the task of doing this for a 3rd night in a row!

Remember that “time kills deals”.  You never know if multiple buyers like the same home that you do.  It is in your best interest to make sound decisions quickly.  Don’t rush, but be swift.  It could change the entire outcome of your purchase.  In many cases, it may help you avoid the risk of being in a multiple offer situation.

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The New Buyer Orientation

March 23, 2010 By Leave a Comment

key.with .buildings 300x200 The New Buyer Orientation

I’m off to meet a client/friend at Brix Condos this morning who is closing on her new unit this week.  We are actually meeting today for her orientation.  For each project the orientation is different.  Some will cover just the basics, while others take you through a detailed process highlighting everything that would be pertinent to know as a new homeowner.  What I have found as important during this process as a new buyer is to ask lots of questions.  Here is list of the most important items to cover before moving in:

  • What does the home owners warranty cover?
  • How do I file a claim?
  • Did you provide the appliance suppliers information in my homebook?
  • Where is the water shut off valve in case of an emergency?
  • Where is the quickest way out of the building?
  • Where are my quickest points of access to both the garbage and recycling?
  • Do I have keys for doors to the building in addition to the main entrance?
  • Did you supply me with my storage keys?
  • In the event that I lose my key-fob, who shall I contact?
  • Do you provide a list of preferred vendors/contractors for additions or repairs?
  • Do you have a contact number for the association?
  • Does Insurance carrier for the building have a point of contact?
  • In my home book is there anything I should know about besides what we have covered today?

There are a number of other questions you should ask when going through the final stages of your home purchase, but this is a great start.  Most new projects are doing a pretty thorough job in proving a large “buyers book” for you when you move in.  It serves two purposes:

1.  It gives you everything that is required legally.
2.  A seller hopes it answers most of the questions that I’m encouraging you to ask icon smile The New Buyer Orientation .

Good luck on your new purchase and as always if you have questions, feel free to e-mail us at info@urbanimg.com

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Filed Under: Buyer Orientation, Buyer Tools, Home, The UCS List Tagged With: , , , , , ,

Price Reductions-Be Careful What You Read

March 3, 2010 By Leave a Comment

motivated seller 300x240 Price Reductions Be Careful What You Read

Careful what you read.

When a condo project advertises that it is reducing or cutting its prices by 50% this is not a true reflection of the overall pricing strategy.  As transparent as we want these projects to be, there is no way that they will show the public how they intend to sell their entire inventory.  A campaign that suggests a building is reducing prices by 30-50% is simply a marketing ploy to capture the public interest. At the end of the day, the market will dictate when the units sell and for how much.  It is simply supply and demand and the perception of value vs. cost.  Condos sell on momentum.  Developers and their sales teams are motivated and need to get you in the door to view their product.

Here are a few suggestions I would give you to ensure that you are not “sold” on these extraordinary reductions:

  • View as many units as possible
  • Ask the sales team how they are pricing the same units on different floors (i.e.  What would it cost me to move up to the 14th floor from the 12th?)
  • Ask for a floor plan and a cost per square foot for each unit (example…$500,000 / 950sf = $526psf)
  • Ask to see the units with the largest amount of reductions (within your price point).  This will allow you to see if those units were reduced due to potential issues (i.e…..Site plan, functionality, poor views, quantity, square footage etc….)
  • Don’t by into the usual sales tactics.  There is still plenty of inventory to choose from.  Take you time and make a great decision.

As always, if you have a questions, please feel free to e-mail me at info@urbanimg.com

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Filed Under: Buyer Tools, Home, The UCS List Tagged With: , , , , ,

Can I Buy A Condo in Litigation?

February 12, 2010 By Leave a Comment

condo.litigation 300x225 Can I Buy A Condo in Litigation?

Condo litigation can be devastating for both buyers and sellers.  I have touched on this topic in the last 3-4 months, but felt that you might benefit from understanding how a lender looks at litigation.  Steve Tedrow was kind enough to put together this piece for your review.  I hope it brings some perspective on the difficulties of lending in these problematic situations:

One of the most common reasons that a lender may refuse to grant financing in a condominium complex arises when there is any type of litigation.  This applies to both FHA and conventional financing.  The only exception to the rule is if the HOA is named as a plaintiff in a foreclosure action or action for past due HOA dues.  There are certainly many instances where the litigation appears harmless or insignificant, but there is still uncertainty in the lenders eyes.  They have no idea of the outcome or the magnitude of potential legal fees which could be involved.

In the past, lenders were sometimes able to make exceptions.  Then, if the investor decided not to purchase the loan, the lender would just place the loan in their portfolio.  In the current mortgage environment, most lenders will only make mortgage loans if they are saleable.  There are a few portfolio lenders who may make exceptions, but only in very unique situations.  One of the questions on the resale cert addresses Pending Litigation.  If you see this section marked yes, find out the details and consult the potential lender immediately.

Financing a property in litigation is obviously a difficult task.  In lieu of trying to buy a condo in this situation, I would focus on how to avoid them.  The best defense in avoiding condo litigation has everything to do with your due diligence.  Here is a short list of how you can avoid this major mistake:

  1. Do your research (Your reading a condo blog.  Thats a good start!)
  2. Hire a professional (A good real estate agent or a qualified attorney)
  3. Read your resale certificate thoroughly
  4. Think about the future (any upcoming assessments, budget shortfalls etc…)

As always, feel free to call me with any questions at info@urbanimg.com

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Filed Under: Buyer Tools, Condo Litigation, Home, The UCS List Tagged With: , , ,

How To Buy A Short Sale

January 16, 2010 By Leave a Comment

Short Sale How To Buy A Short Sale

If you haven’t noticed the incredible amount of short sales on the market, I would venture to guess that you have not been looking for a new home. Since the begining of 2009, I have noticed more and more short sales hitting the market.  It boils down to a few different contributing factors:

1.  Unemployment
2.  Loss of assets (Stocks, 401 plans, retirement savings)
3.  Investors that over levered and are willing to “give” up.
4.  Simply; a homeowner is underwater and their home is worth less than what they paid for it.

Short sales by definition are “A property sale negotiated with a mortgage company in which a lender takes less than the total amount due”.  This is an opportunity for both the bank and the owner to avoid foreclosure.  What I am suggesting is to embrace these sales.  It is an chance of a lifetime to get an unbelievable deal on the purchase of your home or condo.  Short sales can represent discounts of up to 35-%40!  The caveat is evaluating the property and doing the initial research to make sure you buying a short sale that fits the category of success.  Or put a little more simply, the home that gives you the best chance to close.

The advice I would give you would be to understand ahead of time what type of short sale it is.  The most important ways to evaluate the property is by asking the listing agent these exact questions:

1.  Do you have bank approval for the price that you are currently listed at today?
2.  Does the owner have more than one lien that needs to be removed?
3.  Have you received any other offers?
4.  Do you have a negotiator that will be handling the file?
5.  Who is responsible for paying the short sale negotiator?

Sometime in the future I will explain the importance of these questions in greater detail.   If you have any questions or need further assistance, please feel free to contact us at info@urbanimg.com

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Filed Under: Buyer Tools, Home, How To Buy A Short Sale, The UCS List Tagged With: , , ,

Buying Real Estate-The Right Way

January 9, 2010 By Leave a Comment

rsz buying real estate the right way 300x175 Buying Real Estate The Right Way

Real estate is a great example of a purchase we make in our life that makes us emotional.  At one time or another, you will get caught up in the moment of a purchase and you will make “emotional” decisions instead of “strategic” decisions.  I want to help you understand a few ways to overcome the tendency of getting emotional over your new home or condo.  Before we get there, lets go through the steps you need to take before you get to the negotiations:

1.  Get Pre-Approved.

Getting pre-approved by a lender should be the first step on your way to home ownership.  It is quick, easy and FREE.  Until you are pre-approved, you may be looking at homes that you simply can’t afford.

2.  Pick a GREAT agent/broker to help you identify your goals and needs for a new home.

This is obviously a pretty big piece to your new purchase puzzle.  You don’t want to just choose anyone.  Interview them.  Write down your goals and desires for a purchase and ask your prospective agent;  ”Do you have the experience to help us find this kind of property?”.  ”Are you willing to negotiate for us as if it was your own purchase?”  ”If we respect your time, are you willing to take the time to help us choose the best home for us?”.

Getting off on the right foot with a qualified, experienced and intelligent agent is the first step in the process.  Think of them as an advisor.  This is an important decision; you need someone in your corner, acting with your best interests.  Pick an expert in the area that you would like to purchase.  Don’t settle for a friend, family or acquaintance.  Interview first, hire second.

3.  Treat a purchase like a report

Does everyone remember book reports in grade school?  I do.  Here were the steps then that led to success then and how they relate to your purchase now:

-research (Pick three neighborhoods and stick to them.  Get to know them, and make it a priority to understand the ins and outs of where you may call home. Having three neighborhoods identified early, will force you to stay focused.  It can be easy to look all over the city, but if you do, you will get distracted, you’ll get frustrated and the number of homes/units to look at will seem endless!)

-an outline (Write down the contents of your new home.  What does it look like?  What floor?  What type of amenities do you need?  Do you want the unit closest to the grocery store, or with a better commute to work?)

-a draft (This is where your hard-work will lead to success.  Take the time to sift through the junk.  Everyone has their own way of researching homes Craigslist, Google, Windermere, John L. Scott, Coldwell Banker, Redfin etc…. It doesn’t matter what site you use; just pick a horse, sift through the homes you don’t like so it will reveal the homes you do like!

-The final product (now that you have the neighborhoods of choice and the homes/units identified,  you need to build confidence in your decision).

4.  What does your gut tell you?

This may be an old saying and one that doesn’t help the analytical type, but I’m telling you that you need to trust your instinct first.  If the place feels like an investment that you would enjoy, be happy with and something that you would be proud to show your friends and family; it probably is.  Let your “gut” help you make that decision.

5.  I’ve found the “place”!  Now what?

This is where you start to build your strategy.  You need to remove the emotion and the feeling that you can’t live without it.  You need to quickly identify two other units or homes to help you negotiate.  Ask your agent to build a negotiation strategy, based on those units as well.  What I mean by that is when I represent a buyer I typically like to show the sellers they are on a list of  ”3″.

Here’s an example:  ”Mr and Mrs. Seller, we have identified your home as one that we may purchase. It is on a list of our three favorites.  Once we go through the pros and cons and we make our decision, we will let you know”.

At this point, the sellers know that there is competition.  By doing so, you “create” emotion that the seller has to deal with.  They may ask themselves, “if we don’t take this offer, they will probably take one of the others, right?”  or “I think we should just give them what they want.  We don’t need to be on the market any longer…..do we?”.

The other side to this method is that it is often a much better experience for you as a buyer to give yourself another option in case your first options falls through.  This helps remove emotion; thus forcing you to make better “strategic” decisions which ultimately lead to getting a better deal.

6.  Make your offer sing!

The biggest part of getting an offer accepted is how it is written and presented.  It needs to be clean.  If your agent knows their stuff, they will add very little.  The offer needs to be simple, straight and to the point.  You need to do your homework so that you may touch on items that may be important to the seller.  For instance:

Are they moving?  Are they on a tight timeline?  Would it help to give them a “quick close” so they can get on with their life and get to where they need to be “on time”.  If that is the case, you can structure your offer to give, so that you may receive.  A quicker close for a seller, could mean an additional $5,000 dollars off the purchase price for you.  Bottom line is; find the opportunities to leverage and use them to your advantage.

7.  Stand firm, but use deadlines to your advantage!

Now that you have submitted your offer.  Stand firm.  Don’t expect to always get an answer over-night.  Getting everyone on the same page can take time.  Use the deadlines in the contract to your advantage.  For example:

“We’d like to have a response by tomorrow at 5pm.  We are still waiting on a response from our other offer as well.  We do like your home the best, but if it gets down to it.  We may move in another direction if we don’t hear from you in a timely manner”

Time-lines create more decisive action from a seller.

8.  Enjoy your new pad

Buying real estate is living the American dream.  Enjoy it.  Its not only a place to rest your head or to enjoy your friends and family; its the best investment you can make for your future.  Home ownership will ultimately be your best investment.  Treat it that way.  I think if you follow the steps I’ve laid out for you, it will put you a step ahead.  When you do finally own your first home; enjoy it, you deserve it.

As always, feel free to send me any questions, comments or feedback to info@urbanimg.com.

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Filed Under: Buyer Tools, Buying Real Estate-The Right Way, Home, Remove Emotion-Add Strategy, The UCS List Tagged With: , , , , , , , ,

10 Questions That A Condo Buyer Should Ask

December 20, 2009 By 3 Comments

rsz bellevuetowers big 300x150 10 Questions That A Condo Buyer Should Ask

*Don’t buy a condo without reading this post*  Buying new construction is tricky, put an expert list of questions on your side.  You’ll be thankful that you did!

1.  How many units have sold in the building?
This is important because it can reveal the “momentum” of a project. Don’t buy into the explanation of units “under” contract; ask them for the recorded sales!

2.  When do you expect to sell out?
Every good developer has a projected sales number.  Builders that fail to sell, have failed to plan!

3.  May I see the units that are not listed on the MLS?
It has been studied that at a given time, only 5-8% of the available inventory is every marketed on the mls.  It is often not what you see, but what they hide!  Pay attention and ask questions about their remaining inventory.

4.  Do you have a price sheet that I can review?
When you tour a site you’ll often see the sales agents with a clip board.  That is their price sheets.  They keep these pretty close to the vest.  However, it never hurts to ask.  Ask them to see it.  Why not right?  It is said that you can’t get what you don’t ask for.  Right?!?

5.  Are there any owners that would be willing to share their experience here at the building thus far?
People love to talk about things they are proud of.  Especially when it was a good deal, or great service was rendered.  Ask the sales agent if they know of anyone who purchased who would love to share their experience.  Ask for 3 people or more.  That way you are getting an un-biased view and not just an opinion from a person that would say great things about the project regardless if they liked it or not.

6.  Would you explain the warranties that are included with my purchase?
There are a number of different warranties that come with a purchase.  State mandated, Building, Developer, appliance and many others.  It is important for you to find out what warranties are covered by the developer.  If you know everything ahead of time, it will be that much better when you go to have the work handled.

7.  Are there any rules that restrict my ability to lease my unit.
Life can change quickly.  Some of us get married, deal with financial hardship, have to relocate and the list goes on and on.  You should always find out what your limitations are with renting.  It can be a devastating mistake when you “need” to rent and the project won’t allow it.  These types of rules and regulations are found in your public offering statement (new construction) or re-sale certificate (re-sale unit).

8.  Has a Home Owners Association been assigned?  Will the building be professionally managed?
There is a certain time that the HOA is formed and turned over to the owners of a building.  Dues are instated and the developer takes a huge step back in terms of responsibility.  Ask when the HOA will be formed (how many sales until it is turned over?).  Also, make sure that building is managed by a professional management company.

9.  Do I trust the sales agent?
I think one of the biggest mistakes made by buyers is they rush into a purchase without a qualified professional.  We don’t work on our own teeth, cut our own hair or fly a airplane without the help of others; so why do we insist on handling such a big purchase on our own?!?  Treat real estate like you would your other professional service.  It will pay off in the long run. (see my opinion here)

10. Will I love where I live?
Ask to see a map of the location.  Can you walk to a grocery store, movie theater, great restaurant or to buy your medical prescription?  If you can’t, make sure what you are buying suites the other needs in your life.  As cheesy as it sounds location, location, location is the most important mantras in real estate.

Overwhelmed?  Don’t be.  Just learn from the questions provided and apply them to your research when buying a home.  You’ll thank me for it!

As always, if you have any questions, feel free to e-mail me at jreynolds@urbanimg.com

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Filed Under: 10 Questions, Buyer Tools, Home, The UCS List Tagged With: , , ,

Should I Use A Buyers Agent?

December 16, 2009 By Leave a Comment

4190616549 af1dac109c o Should I Use A Buyers Agent?

Ever wonder if you should use a buying agent to purchase?  A few years ago, I was approached by a developer to find out what my take was on this issue.  At the time, there was a lot of discussion on self-representation or models like Redfin.  I thought I would dust off the piece written and post for your enjoyment.  Your feedback is always welcomed as well.

_________________________________________________________________________________________________________________________________________

Do I need a buyers agent?

Jeff Reynolds
Principal and Founder of Urbancondospaces.com

Buying Real Estate in the Seattle market can be challenging and overwhelming.  There are a number of different projects, developers, construction styles and floor plans to choose from.  Where do you start?  Urbancondospaces.com was created to assist Seattle Condo buyers in this difficult decision.   Not only  do we provide the most current information, but believes in good buying representation; and here is why.

Buyers agents help you with the following:

1.  No Cost Representation

One of the biggest myths’s associated with buyers agents is that the buyer could get a better price without an agent.  This is rarely ever the case.  The price you pay for a unit at the sales center will be the same if you are buying the unit with or without representation.   Most sellers/developers need and encourage the work of a buyers agents to drive traffic through the site and to eliminate the liability of representing both parties during the transaction.  Typically after a gross sellout of a project, the ration will be 75% represented and 25% through the on-site sales team.

2.  Understanding

Buying in this market requires an extensive knowledge of the market conditions, locations, and site specific information. Using a buyers agent will help you to analyze and research the important facts before making a purchase.  Buying will require an understanding of the cost per square foot, the current comparables in the marketplace, the best floor plan that suits your needs, the developer and their track record, and the quality of the finish work.  Bottom line, having someone in your corner to help educate you throughout this process will help to give you confidence in your decision.

3.  Support

The sales staff at each project has a vested interest in selling as many units as possible for their developers.  Most “site agents” have an extensive knowledge of their project, but will not provide an objective view on other projects and what may be in your best interest as a buyer.  A buyers agent on the other hand, will be paid once you find the unit that is right for you, regardless of where it is located.  Use a buyers agent to your advantage!  It will allow you to view many different projects, which will build your confidence in making the right decision.  They can handle the pressure from each sales agent and that will allow you to have think clearly throughout the whole process.

4.  Details

A buyers agent will prove to be a jack of all trades.  Throughout the process, you will need help with many details–picking your upgrades, choosing the right storage unit, parking stall, negotiating un-advertised incentives and managing the important timelines in the closing process.  In addition, not all experiences in buying a condo are perfect.  Many times with new construction, delays can occur.  If you are delayed and have to sign an extension, you can lose your rate lock, and the sales staff that continue to represent the developer, will not always look out for your best interest.  Its important to have someone to give you support.  Be attentive, engaged and invested in your purchase, but lean on the expert to handle what they do best–making sure that you get to the closing table with all the details handled effectively and with ease.

If you have any questions, and or concerns, e-mail us at info@urbanimg.com  We will be happy to go over our process of representation or answer any questions that may come up as you search for your new home.

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Filed Under: Buyer Tools, Home, Should I Use A Buyer's Agent?, The UCS List Tagged With: , , , ,
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