Cincinnati Condo Connection

Condo Buyers Checklist: 3 Tips to Make Buying a Condo Less Stressful

Street in Cincinnati

People make the decision to purchase a home for a variety of reasons. For some, it’s all about the location. For others, it’s about pricing and amenities, but most of all, it’s about potential return-on-investment in the future. Regardless of what you are looking for, the home-buying process can be an arduous one. Here are a few tips that, if applied, will make your condo purchase less stressful.

1. Evaluate your finances

This may seem obvious but the importance of preparing your finances when before a home purchase cannot be understated. Condos, in particular, come with some unique financial challenges, due to varying Homeowner Association rules. To help avoid confusion, both buyers and sellers should make sure to utilize the Condominium and Homeowner Association Checklist provided by the Cincinnati Area Board of Realtors. You should also ensure that your own financial statements show a history of good credit and on-time payments. For a deeper dive into how to boost your credit rating, check out Credit Repair’s recent article on “How to Fix your Credit to buy a Home.” In addition, make sure that you have saved up enough to fund at least a 5% down payment (although 20% is typically preferable) on your home

2. Research, Research, Research

You can be prepared for many of the curveballs that the condo-buying process will likely throw your way by doing lots of research. The best advice we can offer is simply to start early. Even if you may not be looking to purchase a new home right away, the more time you have to familiarize yourself with the area the better off you will be. Look at price ranges, appreciation likelihood, availabilities, and amenities. Then, create a list of must-haves for your new home, and continue to proactively add and subtract from that list throughout the process

3. Get help from a professional

As a potential home-buyer, it is in your best interest to find help from a licensed real estate agent. Not only can they help you decide which home to buy, they can offer much-needed help and advice throughout the purchase process.

Here at Cincinnati Condo Connection, we understand the intricacies of purchasing a Cincinnati condo for-sale. We have a proven track record of quality with both buyers and sellers and often know when new units will be available before they reach the market. Contact us to begin your search for a Cincinnati condo today!

Best Deal on a Condo in Over-the-Rhine

There are many beautiful, affordable homes on the market in Cincinnati. With each neighborhood providing a unique culture and great amenities there is something for every potential home-buyer.

Over-the-Rhine, one of Cincinnati’s most popular and historic neighborhoods, is no exception. The area is home to some of the city’s best restaurants: The Mercer, Pleasantry, Sartre and French Crust, as well as, Washington and Ziegler Park. The recently installed streetcar connects Over-the-Rhine to both the city’s business district and riverfront neighborhoods. Most homes for sale in the area are recently upgraded condos with lofts that range from $200,000 all the way up to $550,000.

Homes for sale in Over-the-Rhine are known for being slightly more expensive than other Cincinnati neighborhoods. The current, average listing price is $324,950. However, given the area’s growth over the last 20 years, as well as proximity to dining, shopping and nightlife, a home or condo for sale in Over-the-Rhine is almost guaranteed to be a great investment. In fact, Zillow predicts that home values will grow at least 3.7 percent over the next year.

One such listing is the home at 1326 Vine Street B, in the Trinity Flats condo complex. Natural lighting fills this open concept, two bedroom, one bathroom condo with a built-in loft. Chic wood flooring, updated appliances and granite countertops, make this home perfect Cincinnati professional or young family. In addition, The Trinity Flats building offers a rooftop resident deck, and onsite shopping and dining. This home is also only a 10-minute walk from Findlay Market. Findlay Market is a trendy spot that that is known and beloved by locals as the best place in the city to buy locally sourced goods. Currently listed at $279,000, this property provides excellent value for the interested condo buyer.

Are you interested in purchasing a condo in Over-the-Rhine this year? Check out our listings page to view all of our available properties.

Looking Back: What 2017 Showed Us About Buying a Home in Cincinnati and US Real Estate Market Trends

Cincinnati Skyline

It is no secret that 2017 was a year of tumultuous political and economic change for the US, both on a local and national level, changes that had a direct influence on the US Real Estate Market.

At the beginning of 2017, Forbes predicted the following for the United States housing market:

Prices will continue to rise, albeit more slowly than in recent years.
Affordability will worsen, particularly in cities like Seattle, WA and Austin, TX, which continue to see huge amounts of real estate and job market development.
More Millennials will become homeowners.

Now that we are a few weeks into 2018, here at the Cincinnati Condo Connection we decided to do a little research to determine how those predictions played out on both a national and local level.

According to an article published by Trulia in October of 2017, demand for homes across US markets has continued to rise. In fact, the share of inventory sold in the US surpassed its peak for the first time since the recession of 2008. Unfortunately, that increase has done little for the affordability of homes on the market. A recent study by Realtor.com shows that the median list price for a home in the US in December of 2017 was $270,000, 8% higher than the median price in December of 2016. However, earlier in 2017, the median list price was at $275,000. These numbers show that Forbes’s prediction was correct, and that, while prices are still higher than they were in 2016, they are rising more slowly than in past years.

Numbers here in Cincinnati show a similar pattern. However, Cincinnati condo and home prices are actually rising more sharply than the national average.

According to a report released by the MLS of greater Cincinnati in November 2017, the median sales price for a home in Cincinnati was roughly $170,00 0up about 10.41 percent from November 2016’s estimated $150,000.

Although most 2017 pricing reports are still being collated, research by CoreLogic from April 2017 shows that home values were indeed increasing across the United States, rising by 6.9 percent as compared to April 2016. However, it is worth mentioning that these numbers can vary vastly by market. According to 2017 data from the Federal Housing Finance Agency, Cincinnati trends show a home value gain of 6.5 percent over the last 10 years. While, in more quickly growing areas such as Austin, Texas home values have grown 65.8 percent over the last 10 years.

So the final question remains, did more Millennials actually buy homes in 2017? According to the 2017 Home Buyer and Seller Generational Trends Report, the answer is yes. In fact, buyers 36 years of age and younger made up the largest share of homebuyers in 2017. However, that overall number is down 1 percent from 2016’s 35 percent. Are you a millennial interested in buying a home in Cincinnati this year? Research shows that an investment in “The Queen City” will be a smart one in 2018 given that Cincinnati was named one of Trulia’s top 10 best markets for Millennials who want to buy a home in 2017. The report evaluated housing market viability for Millennials based on the following criteria: job growth, vacancy rates, starter-home availability, online listing searches, and the percentage of people in the vicinity under age 35.

Overall, research from multiple sources shows that the housing market is finally beginning to even out, even in the nation’s most popular and expensive markets, and that the outlook for home values, prices, and inventory in 2018 is a relatively positive one.

Three Tips for Flipping a Condo in Downtown Cincinnati

The American

With the ever-growing popularity of HGTV shows like Flip or Flop and Fixer Upper, home flipping as a source of income is becoming more and more popular. While for some, it can be a great and lucrative investment; home flipping is not for everyone. Interested in flipping a home or condo in downtown Cincinnati? Check out the following tips to help you get the most bang for your buck.

1. Understand the home flipping market and the costs involved

Presently, the home flipping market in the United States is a saturated one. Atom Data Solutions’ Q2 2017 U.S Home Flipping Report, showed a home flipping rate of 5.6% of all home sales during the quarter and a gross flipping profit of $67,516. Inventory is tight nationwide, which makes flipping anywhere a tough investment. Before buying a home, make sure that you have done your research on the area in which you are purchasing. Check multiple sources to see what comparable properties are renting or selling for, and gauge the level of necessary repairs around those numbers.

The importance of understanding the growth potential of the neighborhood in which you are purchasing cannot be understated. For instance, a condo for sale in Over-The-Rhine may be more expensive and need fewer repairs than one in Oakley. However, given the rate in which home prices in Over-The-Rhine have grown in the last 20 years, a condo flipping project in that area is likely to be the better investment.

2. Be Wary of Costly Repairs

Allow your research to inform which repairs you undertake on your newly acquired property. While research shows that an upgraded kitchen and bathroom are large selling points on most homes, they are also the most costly upgrades, given that typically they will require plumbing work. Although some costs will vary by market. According to HomeAdvisor, the average kitchen repair will cost anywhere from $4,000 to $50,000. While the average bathroom repair ranges from $2,500 up to $23,749.

3. Work with the right contractor and construction team

Do your homework to find the best, most reliable contractor for the job. Check references, look at past projects and thoroughly interview everyone you bring on your team. The right contractor can also be a great sounding board for cost – effective re-model ideas but, be careful not to overdo it. Choose a few, impactful repairs that will help you to improve the value of the home without paying an arm and a leg and, do your own repairs where you can. The best way to save money on a home improvement project is to do-it-yourself.

Although the house flipping market is a saturated one, it is possible to make a decent profit given the right tools. Here at Cincinnati Condo Connection, we have condos for sale in a variety of price ranges, some of which may be a great flipping investment. Contact us today to begin your own project!

Is it Better to Buy a Condo Pre-construction or as a Resale?

This is often a topic of concern. I’ve heard many people state that condo values do not go up because condominiums are commodities. It’s not that simple. The same rules apply to single family homes. LOCATION. LOCATION. LOCATION. Got that?

New Construction

The Value of New and Choice

I’ve found that a lot of people really value the newness of new construction. They love choosing their finishes and living in a unit that no one else has lived in. You have the opportunity to pick the best view, floor plan and all of your finishes.

The Developer Needs You

Those first few buyers can often negotiate a bit more than later buyers. The developers typically need to presell a certain percentage of units (70%) to get financing for the project. While they are not inclined to reduce prices in a good market, they are often happy to give you some upgrades just to book the sales. They know that the first few are the hardest to sell, once they have sold a good percentage of them other buyers will hop on the train and buy too.

Lock in Pricing

In an upward moving market, you are purchasing tomorrow at the market price today. I’ll gladly pay you for a condo tomorrow.

Discounted HOA Assesments

If you aren’t there that long, this may be a good thing. The developer wants to sell unit and is not worried about putting the funds away today for problems that may develop 20 years from now. HOA payments will increase with time. They always do. Expect them to increase at the rate of inflation. It’s just good planning.

Tax Abatements

Many cities including Cincinnati offer generous tax abatements for new construction. 10 to 15 years at reduced prices. Leed Certified is the best but any tax abatement can save you a lot of money over the years.

Construction Noise & Mess

New construction can go on for years. Are you ready to live with the noise, dust and construction workers? Think about this if you are retired and home all day or if you work from home.

Who Controls the Building?

New construction is more complexity. How long will it take and when will the homeowners get control from the developer. The goal is for the homeowners association to run the building, but all new buildings are run by the developer until certain milestones have been met by the developer.

New Construction has More Complexity

How long will it take and when will the homeowners get control from the developer. Will it sell out or will it maintain it’s pricing? Will the developer have the financial wherewithal to complete the project? Low inventory today means less to worry about but that wasn’t always the case.

Reasons to Buy a Resale Condo

Location and View

Often the best locations and views are the older buildings. Most cities were developed a long time ago and people still want to be near downtown or to have views of water and minutes. River view and ocean view condos were usually built long ago. Park views are also sought after and the more established a park is the more expensive homes near it. There are always exceptions to this especially in newly revitalized cities.

Discount

Resales may have dated interiors or are being sold under a bit of distress. People get old and move to assisted living and sometimes their families are left to sell the units and aren’t as emotional as the owner. If you are willing to renovate, you can often get a very good deal and a good view.

The Community is Already Established

Once the building has been inhabited for a while, the community is established. They have institutional knowledge, a board and management with knowledge of the building. It can take a while to establish boards and processes. In a resale you can tell if the building is a quiet building made up of retirees and professionals or a rowdy building with young professionals and students. Some buildings are more social than others. It’s helpful to know which type of community you are seeking.

Size matters

New construction for the most part tend to be smaller units with higher SF costs. The exception is the luxury market. In Cincinnati, many of the new construction seem to be either 3,000 plus SF and over $1 million dollars or 1,000 SF and $300,000-400,000. Developers need to make money and are making smaller and smaller condos. Micro condos and one bedroom condos are becoming more prevelant.

Better Quality Building

Older buildings are often built better. Older condos were often made of better materials by better craftsman. Some new buildings can be pretty but not so well made. Take the time to learn about the developer. I’ve known more than one buyer who bought new construction only to find out that they can hear the neighbors walking above them. Consider a newly developed older building for the best of both worlds.

Buying a Condo? Get the Facts

Buying a condo is a little different from buying a house. You are buying into a community and delegating management and maintenance to others (the board and the manager). I often think that you are becoming business partners with your neighbors. I consider this a good thing. There are more resources to draw from and you can keep things together even when you have big life changes that may take you way from day to day maintenance and management of your property, however; you want to make sure that the other homeowners have similar values to yours. If it’s a luxury building, most of the owners will want things to be in top top shape and you will pay to keep it that way or you may be in a building with mainly first time home buyers or retirees living on very small budgets who may be more interested in doing the bare minimum and deferred maintenance could be an issue.

Get the Documents

Declaration, By-laws and Rules and Regulations: It is your responsibility to get these. If you are working with a real estate agent they will likely request these as part of the purchase contract (offer), however; there is no reason that you can’t review these before placing an offer. These are legal documents that describe the property and how it will be run. You and your real estate agent should be able to read understand them but don’t hesitate to have an attorney look at them if you are not comfortable with them.

Financial Statements: You’ll want to review the annual budget so you can see where the money goes and understand the financial priorities of the community. You will also want to see the income statement for year to date or previous year. This is sometimes called a profit and loss statement. This will help determine how good they are at sticking to the budget. The balance sheet will give you a picture of the assets and liabilities of the HOA. How much cash reserves are in place for large capital improvements or maintenance issues that my come up.

Meeting Minutes: Whether the HOA board meets monthly, quarterly or annually, you will want to see what the topics of concern are for them. Generally the larger the community the more often they meet. Request minutes for the last year. Your real estate agent or the management of the community should be able to get these for you. The community is required to keep minutes of their meetings.

Talk to the Stakeholders and Professionals

Residents: Find out if you already know someone that lives there or a friend of a friend. They will be able to tell you what the culture of the building is like and if they like living there. If you don’t know anyone, ask your realtor to help you find someone. Every community has their doers, complainers and regular people who just enjoy living in the space. Make sure you know which type of person you are speaking with. In other words a complainer might be a good resource to help you understand where potential problems may be but they may also be someone who always finds faults with the community, The doers are a good resource who may be a bit more positive and have better facts.

Management: The manager may be onsite or offsite. The manager may also be another resident or a professional property manager. They will often give you good insight into how the building is run and the culture of the building. They can provide you with more in depth information. Ask them if they’ve done a condo reserve study to determine what will need to be repaired or replaced and when.

Board members: They will be the most knowledgable resource about the issues. If you have concerns about anything that you found in the financial statements, meeting minutes or conversations with residents.

Lenders: Financing a condo with a mortgage is different than a regular house. Your lender will consider your ability to pay the HOA payments in addition to your principal, interest and taxes. Also not all condos are eligible for FHA financing. It’s best to find a local lender that understands condos. Your realtor should be able to help you with this.

Insurance Company: Condos are usually much less expensive to insure than a home since you are usually just financing the interior of your condo.

Home Inspector: Get a professional home inspector to conduct a full inspection of the condominium. You will want to learn the condition of the appliances, electric, plumbing, HVAC and more. Even if you don’t plan on asking for anything from the seller, it’s a good idea to get an inspection so you have a n understanding of how things work and what might need to be done to make your home functional for the future.

Maria Walley