Condominium or Co-op? What's the difference, and which is best for you?

You may not have ever known there was a difference, or even cared, for that matter.  However, if you are about to embark on a purchase of a condo,  you have probably  seen a co-op or two in your search. It's certainly an appropriate  time that you know and understand  the difference.

Both condominiums and co-operatives are considered Common Interest developments (CID's) The terms 'co-op' and 'cooperative,' are short for 'cooperative housing project.' Cooperatives are fairly common in New York and are found more in the Northeast than in any other part of the country. There are only a handful of co-operatives in Fairfield County, so if and when you run across one, you  should be quite clear on the differences, so when given the choice, you can make the best decision

• Condominiums are  individual homes that are owned by the the Unit Owner, with  fee simple title. The Unit Owner also owns an undivided  interest in the common elements, such as hallways, exterior walls, recreational areas and roofs. Each unit has their proportionate share of expenses, called Common Charges, or Common Fees. When you receive your by-laws, there will be a section that lists your particular unit's percentage of the complex. Common fees  vary from complex to complex in monthly charges, and also what is included, so again- check those by-laws to see what exactly is covered by your fees.

• Cooperatives are owned by a Cooperative housing corporation.  I usually refer to ownership in  this way- You are buying shares of stock in a corporation, and rather than getting a dividend payment each month, you get a place to live. The corporation owns the common areas. So you do not OWN the co-op, the corporation does. The upside of co-op ownership? They are typically a lot less expensive than condominiums

• There  are roughly about 3200 co-ops in Fairfield County-  including over 2100 in Bridgeport alone. There are two in Stratford, and Norwalk has one cooperative complex. Stamford also has a number to choose from. Whether  you are in the market for a coop or a condo, your resident expert (That's me!)  is just a phone call, or email away.

 


Great reasons to look at homes in the pouring rain

Did you know that there are great advantages to looking at homes in inclement weather? I have always found the rainy days to assist in being some of the most informative showings. So if the weather outside is less than ideal, don't put off the house-hunt for that day. Here are some great advantages to looking at homes in the rain!

• When it's daylight and the sun isn't out, you will get to see the amount of natural light that exists in the home.

• You get to see for yourself how the well the gutters and downspouts are working, and whether or not some adjustments need to be made for drainage and run-off

•  If there are any hidden or masked odors in the home, the dampness from the rain will bring them out.

• and most importantly, you can check the basement for any water seepage.

The way I look at it-  is if  the house looks good in the pouring rain, it will look GREAT in the sunshine!   So if you are in the market to buy a home, get your umbrella,  forget about what Mother Nature is doing outside, and call me! Rain or shine,  I'm happy to help!

BUYER TIP #2: A house with no curb appeal? Don't dismiss it just yet-

..So your agent drives up to a house  and you take one look at it and think to yourself- NO WAY. You tell your agent that you don't even want to go in. Has that ever happened to you?

Well, let me tell you about that house with no curb appeal- The inside could be absolutely beautiful- you won't know unless you look. If your agent knows you well enough, and I assume he/she would, there is a reason why they made an appointment to see that house. Maybe the inside has everything you want, and more. If it's just a matter of replacing shutters, adding some landscaping or another minor fix, GO inside.

Do you realize how much of a discount that house probably has, just because it doesn't look absolutely beautiful on the outside? There are not many buyers that can see past the outside appearance, and would probably do the same thing that  you were about to- not even go inside. So the seller has had to reduce or discount the property to get people to even go inside. Take advantage of that! Almost always, the outside can be spruced up very inexpensively.  Would you rather buy a house that looked gorgeous outside, but the kitchen needed remodeling? what's the cost of remodeling a kitchen as opposed to a little something outside? Big difference, right? Outside will be a lot less. Remember, you LIVE inside the house- enjoy the beauty of the interior, and work on the outside later.  So the next time your agent takes you to that ugly house, just go in. You might be surprised at how nice the inside is, and you'll be VERY happy for the thousands of dollars you can save because of it.


What to know when buying a home that needs "systems" repairs

Last night I got a call  from a buyer who wanted to see a foreclosed home. She had called the listing agent, and the agent told her the house was a mess, and discouraged the buyer from even seeing it. Turns out that this buyer is not currently represented and knows a friend of mine, who told her to call me. So we set up an appointment to see the house this morning.

I'm not even going to rant about how that agent broke ethical code to her seller by dissuading a potential buyer, I'll just tell you about the house that we saw. The previous owner had purchased this home to make "a quick buck", and was going to remodel it and re-sell it. Unfortunately, he overspent for the house in the beginning, and midway through the renovations, he ran out of money, and the market turned. He tried to hold on to it with the bank, but it ended up being foreclosed.

When we arrived, the back door was unlocked and open, and the garage door was unlocked, and we had the contractor go into the house just to check that there were no unauthorized residents inside. The coast was clear, and the kitchen was nice enough- that made it through the  remodel. The hardwood floors were re-done, however they were somewhat wavy and buckled due to moisture and what have you. Not a big problem there- some sanding ought to handle that. The bathroom was remodeled, too, and essentially the house was pretty much ok... until we went into the basement to check out the componenets of the house.

The furnace was in pieces, and obviously not operating, and there was a BIG NOTE attached to the wall that the septic tank was not operational.   (It would have been nice if the agent mentioned that in the listing, but that wasn't the case- she did not even mention it on the phone with the buyer, either.)

As far as getting a mortgage on a home, the home has to be functional (heating, water and sewage systems need to be working) in order to obtain any type of conventional loan. So what does that mean for this buyer, or for you, given the same or similar set of circumstances? It means that besides having your downpament monies, you will need to have enough to fix the necessary components of the home as a contingency of getting the loan... or you would have to apply for a specific type of loan offered through the FHA, (called a 203K) where you get incremental amounts of money to re-hab the property. In that case, the property will have to appraise for the total amount of not only the purchase price, but the rehab costs  as well. A headache for most buyers. Not to get discouraged, though- all foreclosures are not in this bad of shape, just be prepared in mind and wallet for what comes ahead.

How the property tax is figured on your Fairfield County home

Property tax is figured by the value  (assessment) of the property, but it's not all that simple, or cut and dry. The reason you have an assessment of your property is to calculate your fair share of  taxes in order for the town to have enough income to run all of its departments. By law, each of Connecticut's 169 towns and cities have to re-valuate properties every four years. Let me debunk one popular myth: Your assessment doesn't change based upon the purchase price of the home- (otherwise, people would sell their home for a dollar, and pay virtually no tax)

The reason for the four year re-valuation is because both residential and commercial property values fluctuate  and cause an imbalance in appropriate rates for both. So in order to keep things in line, the re-assessment  is necessary.

The tax assessment for your home  is based upon a calculation  of square footage, amenities in the house, and location- much like a real estate appraisal, but there are a few major differences that I will try to explain to help you understand.

Here's an example: The town assesses your home at $700,000, and you just bought it for $1,000,000. Did you over pay for the house?  The bank appraised it at $1 million! So what gives? The town thinks your home is worth 30% less than you think it is, and somebody has got to pay!  There IS a simple answer as to why, so don't try to set things straight  at the assessors office. Complain to the tax assessor about being valued too low, and you might just be rewarded with higher taxes. 

The assessment that you receive on your house is 70% of the market value, so if your assessment is $700,000, the town believes it's value to be $1,000,000. The assessment figure and the appraisal figure are NOT THE SAME. The next time you receive your new assessment, if you look closely, there will be an appraisal  amount there, too. They are both on file with the town, and are considered public information.
 
When the town puts together its annual budget, and compiles all of the values, and expected taxes (a/k/a income) the mil rate is set to cover the budget based upon that income to the town. If the town is  coming up short with the budget, then you will see an increase in the mil rate, and an increase in property taxes. I could go on and on about this subject but my post is long enough. I have helped a few clients fight an asessment that was too high, and WE WON. But that's another post for another time.