Selling a Condo vs. Selling a House

Four Reasons Why Selling a Condo is Different Than Selling a House

Selling a Condo vs. selling a house is a delicate dance. From the initial marketing to the final price negotiations, everything needs to be tailored to the type of home being sold. However, because of their main differences, this process can look very different when selling a condo versus selling a house. 

Reason #1: The Homeowners Association or HOA

As all condo owners will know very well, almost all condos come with some type of HOA, or homeowners association. 

The HOA generally handles common areas like swimming pools, the exterior of the building, and landscaping. Sometimes, the HOA is also responsible for holding social events throughout the year.

However, all of this comes at a few costs. The first is money; a HOA cannot operate or pay necessary expenses without charging residents a monthly fee. The second is freedom; most HOAs have rules that need to be followed.

When selling a condo, potential buyers will balance the costs of each HOA with the benefits.

Reason #2: Real Estate Investors 

When selling a condo, it's reasonable to expect a larger number of investors considering the property than when selling a home. After all, renting out condos is a big business.

As a result, selling a condo could mean a faster closing, a cash offer, or even competing bids if the condo is on prime property.

Reason #3: The Type of Buyer

Different types of buyers look at a condo versus a home. For starters, condos are generally smaller, don't have yards, have all landscaping handled professionally, and frequently come with amenities like a swimming pool or fitness center. 

While a good majority of potential buyers with children would love a swimming pool with zero maintenance, they aren't willing to make the trade for a smaller space. This means that when selling a condo, potential buyers will generally be single adults, newly married couples, or retired professionals looking to downgrade to an easier property.

Reason #4: Location, Location, Location

Every real estate agent knows that one factor, above all others, is most important when selling a property: location. Being close to town versus far away from traffic, near downtown excitement versus in a quiet neighborhood, or near shopping centers versus on the edge of nowhere all come into play for a property's value and desirability.

Generally speaking, condos tend to be closer to urban areas, shopping, and entertainment. This also means that their price per square foot is frequently higher. As a result, owners looking to sell their condo should carefully consult with their real estate agent about the best way to market their property and a fair listing price. Please Contact me if you have any questions or like insight on the value of your property.

Down Payment stopping you from buying?

The down payment is everything

The Down Payment: Everything You Need to Know About Your Down Payment on a New Home

The downpayment is everything. Whether you're just starting to shop for a new home or you've found the perfect house and are crafting your offer, if you're taking out a mortgage to help cover your real estate purchase you've likely given some thought to your down payment. Let"s explore the topic of down payments and share how the amount you put down on your home will affect your mortgage.

How Your Down Payment Affects Your Mortgage

As you know, your mortgage is essentially a large long-term loan that is paid back with interest over a set time period. If you put a large down payment against the purchase, you will not only reduce the amount that you'll need to pay back, but you'll also reduce the lender's risk, and this may allow them to provide you with lower interest rates. Conversely, if you can't place very much down on your home and you're left borrowing as much as you can you may find that your mortgage comes with higher interest rates or that some mortgage lenders refuse your business entirely.

The Gold Standard: 20% of the Purchase Price

For the vast majority of homeowners, it's expected that they will be able to contribute at least 20 percent of the home's purchase price. For example, if you are buying a $200,000 house you'll need to have at least $40,000 available for your down payment. Note that the 20 percent figure isn't a hard requirement; some mortgage lenders will be willing to approve you with less, but you may be subject to private mortgage insurance, higher interest rates and more.

Saving Up Your Down Payment

Depending on your financial situation and the cost of your home you may find that saving up 20 percent of the purchase price to put toward a down payment places a strain on your finances. If you still have a year or more before you're ready to jump into the real estate market, consider putting some money aside each month that can be used for a down payment. If you receive any lump sum payments as a tax return, save this in your down payment fund as well.

Down payment help

Florida is the second most state in the nation only behind Texas that offers over 260 plus programs in assisting first time home buyers, home buyers as well as those with credit below par. Strong consideration and different guidelines to those that served or serving in law enforcement, Firefighter, healthcare, education and those serving in our military. There are programs for surviving spouse of a military member or public protector. Bottom line, there is help out there, and you may qualify for it. There nothing to lose and better to know about these programs before you buy that house you want and not after.

FHA, Home Step plus many other Programs

There are also many Fannie Mae programs that allow you to place as little as 3.5% down and in some few cases 3%. There are also, HUD, Government programs.  The is the information home buyers should be aware of and less frightened with when dealing with the home buying process. It can overwhelm and scare capable home buyers away. Work with leaders, and mortgage companies that your Realtor can best advise you to check on. They would know some reliable, and problem-solving lenders best suited to help people not capable of the 20% down payment. VA loans require zero % down.  Contact your realtor, hire one. Test them and work with just that agent.  You find loyalty brings home buyers the best service.

As you can see, your down payment is one of the most important considerations you'll have to make.

Remember to use the FIND DOWN PAYMENT HELP above.

Pathways to Real Estate Resources

USDA Mortgages: Take Advantage of These Low-rate Mortgage Loans to Buy a New Home

Are you thinking about buying a home in a rural or suburban area? If so, you'll want to take a look at the United States Department of Agriculture's mortgage programs as you may qualify for them. In today's blog post, we'll introduce the USDA Rural Development Single Family Housing Guaranteed Loan Program, explain the benefits of this mortgage program and how to determine if you qualify.  

What is a USDA Mortgage Loan?

  The USDA mortgage program is one of many programs in which the federal government will guarantee a mortgage loan as long as the recipient meets certain criteria. The intent of this program is to provide a boost to residents of rural or suburban areas who are struggling to obtain a traditional mortgage. USDA mortgage loans are an ideal solution for those who are looking for 15 or 30-year amortization periods as they tend to have lower interest rates than mortgages offered by banks and other lenders. There are many other programs available that can do equality as good as the USDA Loan. All one has to do, is click on the link below (Find Down Payment Help) and fill in the short questionnaire to receive what programs are available. Florida, Fort Myers, Cape Coral, Lehigh Acres as well as throughout SW Florida Lee County there are programs. Presently Florida has the second largest assistance home buying programs, over 250 plus various aid, in the country. Take advantage of them. Nothing to lose in filling out the form and receive your quick response.

USDA Mortgage Loan Benefits

  There are numerous benefits to USDA mortgages that make this an enticing option compared to a mortgage from a traditional lender. As these loans offer full 100 percent financing, you won't have to place a large down payment when buying the home. The USDA offers very competitive 15 and 30-year fixed interest rates, something you won't find from many banks or other mortgage lenders. There's also no maximum home purchase price with USDA mortgages, however, note that you'll still be limited by your risk and your ability to manage the monthly mortgage payment.  

USDA Mortgage Loan Requirements

The USDA mortgage program is open to all homebuyers that meet a number of initial requirements. The home you intend to purchase has to be located in a rural area (as determined by the USDA) and it cannot be a vacation home or investment property. As with any mortgage, you'll need a relatively clean credit history. Finally, note that your annual income will also be assessed, and you'll need to prove that you're within 115 percent of the region's median income.   As you can see, the USDA Rural Development Mortgage program can be an excellent option if you're planning on buying a home in a rural or suburban area.