What are the differences between Co-ops and Condos?

Many homebuyers ask me this common question as they search on the internet for homes in downtown Washington DC...What is the difference between Co-ops (cooperatives) and Condos?

What is a condo?
A condominium is a piece of real estate in a multi-unit building which is individually owned and shares use of and access to common areas such as hallways, fitness centers, elevators, lobby, etc. Each owner is responsible for the upkeep of the common areas by paying a monthly condo fee.

What is a co-op (cooperatives)?
A co-op is an organization which a group of individuals owns interest in the multi-unit building. Each owner owns shares of stock in the building.

What are the differences?
1. When you purchase co-op the shares permit you to "rent" the apartment, but when you buy a condo you own the property.

2. Some co-ops do not allow for financing and require the purchaser to pay cash.

3. Though the assessments in many co-op buildings seem higher than those in comparable-sized condos, they may not be since they include real estate taxes.

4. A co-op has a more extensive application process because you also have to be approved by the co-op board in order to purchase a unit. No matter how unfair it seems a co-op board may reject you for any reason other than your race, sex, religion or a disability.

5. Co-ops usually have a lower salesprice to encourage homebuyers to purchase.

What are the similarities?
1. A co-op and condo share the same tax advantages.

Let me know what you think.



Call me at 301-452-4767 if you have any real estate questions.

Best way to learn about DC neighborhoods: LOCAL EXPLORER

Washington DC is one of the few cities in the world with such an abundant activity of visitors and relocating residents.

The common question I get from callers inquiring about real estate is "What is the best neighborhood to live in?"

My first thought is the Washington Post's "Local Explorer!"

The Local Explorer is the best way to find out about the PROS and CONS of any neighborhood in the Washington DC metropolitan area. The details range from restaurants, schools, public transportation, crime stats, recent sold homes, and demographics. This website adds a local touch and knowledge that you won't find on any other neighborhood website.

Check it out: Local Explorer

Living in DC: Southwest DC--ARENA STAGE AND MORE...

Over the past few months, there has been alot of construction throughout the District. One such neighborhood is in the Southwest DC area. I just recently made my way over there to see the area change dramatically with a new redeveloped Safeway, Starbucks, WaterFront Station Metro Plaza, Arena Stage, Condominiums, etc.

All signs of improvement and progress. . .

ARENA STAGE:
A major renovation of the facility is underway, designed by Bing Thom Architects. These plans leave the Fichandler Stage and Kreeger Theater largely untouched, but call for demolition of the theaters' connecting structures, including lobbies and offices. This new "black box theater" will seat 200.



WATERFRONT STATION METRO PLAZA:
The newly constructed development project surrounds the entrance of the Waterfront Station Metro and spearheaded by the new Safeway. It will house about 900 of the total 1,500 city workers to be moved in by March 25th and the move will begin this Friday. By Monday, at the very least, 4th Street will be open for entry by foot by the occupants of both new buildings.



POTOMAC PLACE TOWER:
The Potomac Place Tower has condos starting under $200K with amenities such as fitness center, outdoor pool, business center, etc. The project is over 50% sold and is currently FHA/VA approved. Its southwest location is one of the city's dynamic urban neighborhoods-rapidly redeveloping, near three Metro stations, short walk to the site of the new baseball stadium and 3 blocks from the National Mall. For more information check out: http://www.potomacplacetower.com/default.asp



Tell the sales office you were referred by: Jason Trotman of Realty Pros

What is a 203k loan?

I've heard from many buyers and sellers in today's market, "What is a 203k loan?"

The 203k loan has been around for quite some time. This 203k loan is an alternative method of financing for homes which require substantial repair and the seller is not willing or able to make repairs.

Details about a 203k loan
203k loans allow you to FINANCE the cost of the repairs in the new loan amount. (Not to exceed 110% of the after improved value determined by the appraiser and 203k consultant). What does this mean? I buy a house for $200,000 that needs $50,000 in repairs and I can borrow the extra $50,000? Too good to be true? NOPE. That's it in a nutshell....

Down payment is based on the sales price PLUS the final cost of the repairs x 3.5%.



Call me at 301-452-4767 with any real estate questions!

Why is Fannie Mae self-destructive?

I woke up to see the on the front page of the Washington Post "Fannie Mae asks for 8.4 Billion from Taxpayers!"

This is NOT surprising at all.

Having worked with Fannie Mae and their foreclosures for the past year, I have had a unique opportunity to witness firsthand the systemic culture of mismanagement, waste, bureaucracy, inefficiency, and utter disregard for the local real estate market trends.

Let me give you some examples:

Mismanagement:
In any given transaction, very rarely does upper management know what is going on in each of their respective departments. A culture saturated with cronyism which bleeds the organization dry of quality service providers and rewards incompetence and inefficiency.

Waste:
Fannie Mae uses these "Fannie Mae approved" contractors to make any and all repairs on the foreclosures. The contractors are out-of-state companies who will under bid for a property and will end up charging upwards to 75% more than the original bid. There is NO oversight to see to ensure the quality of work and if the project is completed.

Bureaucracy:
In order to make any suggestions or concerns addressed, there is a barrage of middle management to overcome. There is a systemic culture of red-tape, lack of accountability, and inefficiency which permeates throughout the whole organization from the top down.

In other words, the top management in Fannie Mae just DON'T GET IT!

Solution:
We have to urge our representatives in Congress to dissolve Fannie Mae or break it up into smaller, more manageable agencies in order to plug this SINK HOLE of taxpayer's dollars!



Call me at 301-452-4767 with any real estate questions!

Misconceptions of Selling in a Buyer's market!

Are you thinking about selling your home? I'm sure you have heard the horror stories for sellers in today's Buyer's market.

The MOST difficult obstacle for sellers to overcome in this market is accepting the realistic, fair market value of their home.

YES, It's True:
1. Home prices have declined significantly since the housing boom.
2. Pricing is the ultimate determinant for selling a home.
3. Flexibility regarding Buyer incentives are necessary.
4. Open Houses are one of many great marketing tools.
5. Staging your home is great way to sell a home faster.

NO, It's False:
1. Sellers dictate a buyer's market.
2. Zillow.Com can tell me what my home is worth.
3. FSBO is the easiest and least expensive way to sell my home.
4. If you are selling your home in AS-IS condition, you don't have to make repairs.
5. Short-sale is a streamlined option for selling your home.

FACTORS TO DETERMINE FAIR MARKET VALUE
-Price of comparable sold homes in the neighborhood or building up to a 1-mile radius
-Comparable sold homes must be within the last 3 months
-Updated or upgraded amenities

BEST TIME TO SELL YOUR HOME
-Spring and Summer months are the best time to sell your home.

Share with me your thoughts.



Call me at 301-452-4767 with any real estate questions!

Zillow: PROS and CONS

What is Zillow?
-For those of you that are NOT familiar...Zillow is an online real estate database which can be used by sellers as a marketing tool for their property and buyers can access the information to track properties.

What are the PROS about using Zillow?
-From a seller perspective, Zillow allows you to see current real estate activity in your neighborhood.
-Zillow allow sellers an opportunity to estimate the value range of their home before listing a home for sale.
-Zillow provides an effective marketing tool for listing a home for sale.
-From a buyer perspective, Zillow provides access to over 92 million homes in their database.
-Zillow provides aerial views, square footage, number of bedrooms and baths, comparable sales and listings (ie. public information).

What are the CONS about using Zillow?
-Zillow's valuation tool known as "Zestimate" is based on undisclosed factors and does NOT take into account location, upgrades, finishes, levels, and add-ons associated with an appraiser's market valuation of a property known as "unzillowables".
-Zillow is NOT as updated regarding the status of available properties on the market (ie. Active/Under Contract/Sold.

"In 2007, The Wall Street Journal studied the accuracy of Zillow's estimates and found that they are "often are very good, frequently within a few percentage points of the actual price paid. But when Zillow is bad, it can be terrible." (Wikipedia)

What does this mean for YOU?
-As a seller and/or buyer in today's real estate market, there are many sources of real estate information to choose from...it is important to be knowledgeable about the real estate process and compare the information to knowledge of an experienced realtor who is familiar with the local market you are interested in pursuing.