Hot, Hot, Hot:
The condominium and cooperative market in Washington, DC is very hot now, according to the most recent sales statistics made available by the Greater Capital Area Association of Realtors®.
Supply Side:
There were 465 condos and co-ops available for sale at the end of January. That’s a 43.1% drop in available homes compared to 2012, which was a strong year.
By way of comparison, the highest level of inventory of condos/co-ops was in June of 2008 when there were 1,684 available. That means inventory has plummeted 72.4% from its highest level.
Before there is too much celebration it’s important to remember where the levels were at the lowest point. In April of 2005 there were only 376 condos and co-ops available. That means that inventory is still 23.7% above where it was at the lowest point.
Demand Side:
Equally impressive has been the level of demand for condominiums and cooperatives. In January 2013, 281 contracts were ratified versus 210 in January of 2012. That’s a 33.8% increase in the number of contracts year-over-year. This indicates that despite the limited inventory there is great demand for more condominiums.
Again, for comparisons sake the slowest month of contract acceptance was December of 2008 when only 132 were accepted. This January’s market is 53% better than that.
On the other hand, the peak month of contracts accepted for condos and co-ops was May 2005 when there were 508 accepted contracts. That’s 80.1% more contracts than were accepted last month.
Prices Increasing:
With supply restricted and demand increasing prices have started to rise. There are generally multiple offers on properties and those offers are competing on price to get the seller’s attention. A good guidepost at this point is that prices are at, or very near their highs in 2005 in most neighborhoods in DC.
Appraisers are now the biggest constraint on price increases. They will not value homes at the price agreed to by the buyer and seller. Low appraisals are forcing buyers and sellers to reopen negotiations after the contract has been accepted. Frequently the seller will simply refuse to lower the price and the buyer is stuck deciding between walking away, changing loan terms or bringing more cash into the transaction.
What’s Next?
While nobody can predict the future, the trends indicate that there will continue to be a restricted number of available properties. Primarily there are three reasons that the market will remain tight.
First, there has been very little new condominium development for the past several years to meet this new demand.
Second, during the downturn owners who had units that were underwater rented them out rather than take the loss. Now that the market is perking up they can’t simply kick-out tenants to sell; they must wait for the tenants to leave of their own accord. This prevents the market from being flooded with many new listings.
Third, owners who would be willing to sell have nowhere to move because there is a limited supply of move-up homes available.
With interest rates still at historic lows and employment slowly improving there is a continued expectation for demand to be strong. And this combination of low inventory and high demand foretells more price increases in the near-term.
Saturday, February 9, 2013
Sunday, July 15, 2012
DC Condo Market Tightens Again in June
What a difference six years makes in real estate! The peak for condo & co-op inventory in the history of DC occurred six years ago in June of 2006. On the sixth anniversary of the peak, inventory has dropped 49.1% (827 vs. ,1684) according to the most recent data released by the Greater Capital Area Association of Realtors. (Click here for the report)
Supply Side
On a monthly view, new inventory coming on the market dropped 6.4% from a year ago (470 vs. 440), while that’s good news it lags the pace that was set in the spring of the year. The total available homes to buy is down 31.5% compared to last year, which is incredibly strong. (1,027 vs. 827).
Unlike the house market, the condominium inventory is down pretty evenly across all price ranges except the $600,000-$700,000 and $800,000-$900,000 ranges where the inventory is actually up year over year.
Demand Side
One major divergence between the condo/co-op market and the house market is on the demand side. Unlike houses, condos and co-ops have seen demand pick up in the last month versus the year as a whole. The total number of contracts for the month is up 21.9% last month vs. 2011 (283 vs. 345); this compares to the total contracts for the year which is “only” up 17.5% (1,512 vs. 1,777).
Summary
It’s interesting to see that the market for condos/co-ops is able to absorb everything on the market and continue to bring down the inventory levels. This inventory decline is drawing the “shadow inventory” onto the market.
In the past six years owners who could not sell rented their condos/co-ops to defray costs. Now that the inventory is shrinking and pricing is starting to firm up, the owners are putting their units on the market. But, we are not going to see a flood of shadow inventory come on the market.
The ridiculous tenancy laws in DC effectively prevent owners from selling their homes for market price while tenants are occupying the home. This means that landlords are waiting until tenants leave their properties before marketing them. This process of getting rid of tenants can take months or years and this artificial restraint on the market is slowing the pace at which the shadow inventory reappears.
Supply Side
On a monthly view, new inventory coming on the market dropped 6.4% from a year ago (470 vs. 440), while that’s good news it lags the pace that was set in the spring of the year. The total available homes to buy is down 31.5% compared to last year, which is incredibly strong. (1,027 vs. 827).
Unlike the house market, the condominium inventory is down pretty evenly across all price ranges except the $600,000-$700,000 and $800,000-$900,000 ranges where the inventory is actually up year over year.
Demand Side
One major divergence between the condo/co-op market and the house market is on the demand side. Unlike houses, condos and co-ops have seen demand pick up in the last month versus the year as a whole. The total number of contracts for the month is up 21.9% last month vs. 2011 (283 vs. 345); this compares to the total contracts for the year which is “only” up 17.5% (1,512 vs. 1,777).
Summary
It’s interesting to see that the market for condos/co-ops is able to absorb everything on the market and continue to bring down the inventory levels. This inventory decline is drawing the “shadow inventory” onto the market.
In the past six years owners who could not sell rented their condos/co-ops to defray costs. Now that the inventory is shrinking and pricing is starting to firm up, the owners are putting their units on the market. But, we are not going to see a flood of shadow inventory come on the market.
The ridiculous tenancy laws in DC effectively prevent owners from selling their homes for market price while tenants are occupying the home. This means that landlords are waiting until tenants leave their properties before marketing them. This process of getting rid of tenants can take months or years and this artificial restraint on the market is slowing the pace at which the shadow inventory reappears.
Saturday, July 14, 2012
DC House Market Tightens Further - Lowest Inventory Since 2005
The market for houses in Washington continues to tighten according the most recent sales statistics for released by the Greater Capital Area Association of Realtors (Click here for the report). The available inventor y of houses is the lowest it has been in seven years and the cheapest homes on the market lead the way.
Supply Side
For the month, inventory dropped 11.9% compared to a year ago (486 vs. 428), which is still strong, but not a strong as the spring season was. The number of available houses declined 35.1% this year compared to last (1,092 vs. 709) and is now at its lowest level since August of 2005, which was two months before the market started to slip.
Generally the inventory rises and falls at all price ranges at approximately the same rate, but that’s not the case this month – the low end of the market is much tighter than the high end. Last month the number of new listings for properties under $400,000 dropped 39.2% (214 vs. 130). Whereas number of new listings for properties that are $900,000+ increased 32.1% (78 vs. 103); the highest priced homes had a 53.8% increase in inventory this month (40 vs. 26)!
Demand Side
As supply is constricting, demand is waning. Total number of contracts accepted last month declined 9.7% from a year ago (408 vs. 452).
The reason for this is mostly due to the restricted supply, had there been more properties available, the number of contracts would have increased as well. The proof of that is that the demand for properties has the same disparity as the supply side. Low-end properties are showing weak demand, while the high-end side has shown strength.
Pricing is King
These market trends show an important difference between the current market and the peak of the market in 2005. Buyers are willing to wait for the right home at the right price. There is not the insane desire to buy “anything.” If a home is priced too high, buyers will simply wait for the seller to lower the price of the home.
Summary
If you have a house that is $900,000 or more, it’s critical to price correctly at the beginning. With large numbers of competitors coming on the market and finicky buyers it’s a tougher market on the high-end. If you have a home that languishes for 2-3 weeks without interest it would be prudent to cut the price sooner rather than later.
Supply Side
For the month, inventory dropped 11.9% compared to a year ago (486 vs. 428), which is still strong, but not a strong as the spring season was. The number of available houses declined 35.1% this year compared to last (1,092 vs. 709) and is now at its lowest level since August of 2005, which was two months before the market started to slip.
Generally the inventory rises and falls at all price ranges at approximately the same rate, but that’s not the case this month – the low end of the market is much tighter than the high end. Last month the number of new listings for properties under $400,000 dropped 39.2% (214 vs. 130). Whereas number of new listings for properties that are $900,000+ increased 32.1% (78 vs. 103); the highest priced homes had a 53.8% increase in inventory this month (40 vs. 26)!
Demand Side
As supply is constricting, demand is waning. Total number of contracts accepted last month declined 9.7% from a year ago (408 vs. 452).
The reason for this is mostly due to the restricted supply, had there been more properties available, the number of contracts would have increased as well. The proof of that is that the demand for properties has the same disparity as the supply side. Low-end properties are showing weak demand, while the high-end side has shown strength.
Pricing is King
These market trends show an important difference between the current market and the peak of the market in 2005. Buyers are willing to wait for the right home at the right price. There is not the insane desire to buy “anything.” If a home is priced too high, buyers will simply wait for the seller to lower the price of the home.
Summary
If you have a house that is $900,000 or more, it’s critical to price correctly at the beginning. With large numbers of competitors coming on the market and finicky buyers it’s a tougher market on the high-end. If you have a home that languishes for 2-3 weeks without interest it would be prudent to cut the price sooner rather than later.
Thursday, July 5, 2012
The Only 3 Reasons a Home Doesn't Sell
Everyone has seen it. A house languishes on the market month after month. Why isn’t the house selling? Sellers have a thousand excuses, but at the end of the day there are only three reasons a home does not sell:
1. It’s priced too high
2. It’s not properly marketed
3. It’s hard to show
That’s it. There are no other reasons.
Pricing:
The marketplace knows what homes are worth. Anyone with an Internet connection can find out what homes are selling for now and what they’ve sold for in the past. When buyers see a home they will decide what to pay based on what other homes that are similar have sold for. If a particular home is priced outside of the right range, buyers simply won’t buy the home.
What are the telltale signs the home is overpriced? When the feedback includes:
1. It’s too small – That means the buyers expect a bigger home for the price.
2. It’s on a busy street – For the price the buyers expect the house to be quieter
3. The rooms are too small – Other houses in the price range have bigger rooms
4. The house is a mess – if it were priced low enough the condition would not matter
5. The home has been on the market for a long time – The price is too high.
But pricing isn’t everything.
Marketing:
Let’s pretend for a moment that you are a seller who is willing to give away your home for free to anyone who brings an offer; but you never tell a soul that you’re willing to sell. How long will it take to sell your home? The answer is “forever” because nobody knows it’s for sale. You can’t sell something unless buyers know it’s for sale!
If the home is not properly marketed it does not matter how well priced the home is. Sometimes a property can be entered in the multiple listing service (MLS) and still be badly marketed. How is that possible? Because the listing agent does not fill out information about a home completely. For example, a listing agent may have a 3,000 square foot home but does not fill in the square footage for a home. The MLS shows the home as being ZERO square feet. When a buyer looks online and enters “Find homes over 2,000 square feet” the MLS will not find the home that has “0” square feet! Thus, the home is hiding in plain sight.
But marketing isn’t everything either!
If you have a house that is overpriced it does not matter how much marketing you do. Let’s pretend you are a seller who is selling a house for one-billion dollars. It wouldn’t matter if your agent gave the world’s best individualized presentation to every human on the planet, the house would not sell because the price is too high.
Access:
You can’t sell what you can’t see. When owners don’t allow easy access the home won’t sell. Ideally, the home should be available 24-hours a day, seven days a week on a lockbox without an appointment required. The more restrictions on easy showings the harder it is to sell. You’d be amazed at how many houses require appointments to be seen, or require the listing agent to be present for showings, or only allow showings at inconvenient times. All of these are obstacles to the sale of the home.
Whose Fault Is It?
When a home is not to selling the seller naturally wants to know why that’s happening. The answer is simple, it’s either the agent’s fault or the sellers fault. That’s because the agent is responsible for marketing the home. The seller is responsible for the price and access.
As a seller you must determine if the house is being properly marketed. Frequently, when a home fails to sell, it’s because the agent is working for such a low commission that he/she doesn’t have enough money to properly market the home. Even if the agent has the money, the question is whether the right marketing is being done. If not, find an agent who can properly market the house.
If the marketing is being done well and the home isn’t selling, make it easier to show.
If the home is properly marketed and easy to show, but has not sold: Lower the Price!
1. It’s priced too high
2. It’s not properly marketed
3. It’s hard to show
That’s it. There are no other reasons.
Pricing:
The marketplace knows what homes are worth. Anyone with an Internet connection can find out what homes are selling for now and what they’ve sold for in the past. When buyers see a home they will decide what to pay based on what other homes that are similar have sold for. If a particular home is priced outside of the right range, buyers simply won’t buy the home.
What are the telltale signs the home is overpriced? When the feedback includes:
1. It’s too small – That means the buyers expect a bigger home for the price.
2. It’s on a busy street – For the price the buyers expect the house to be quieter
3. The rooms are too small – Other houses in the price range have bigger rooms
4. The house is a mess – if it were priced low enough the condition would not matter
5. The home has been on the market for a long time – The price is too high.
But pricing isn’t everything.
Marketing:
Let’s pretend for a moment that you are a seller who is willing to give away your home for free to anyone who brings an offer; but you never tell a soul that you’re willing to sell. How long will it take to sell your home? The answer is “forever” because nobody knows it’s for sale. You can’t sell something unless buyers know it’s for sale!
If the home is not properly marketed it does not matter how well priced the home is. Sometimes a property can be entered in the multiple listing service (MLS) and still be badly marketed. How is that possible? Because the listing agent does not fill out information about a home completely. For example, a listing agent may have a 3,000 square foot home but does not fill in the square footage for a home. The MLS shows the home as being ZERO square feet. When a buyer looks online and enters “Find homes over 2,000 square feet” the MLS will not find the home that has “0” square feet! Thus, the home is hiding in plain sight.
But marketing isn’t everything either!
If you have a house that is overpriced it does not matter how much marketing you do. Let’s pretend you are a seller who is selling a house for one-billion dollars. It wouldn’t matter if your agent gave the world’s best individualized presentation to every human on the planet, the house would not sell because the price is too high.
Access:
You can’t sell what you can’t see. When owners don’t allow easy access the home won’t sell. Ideally, the home should be available 24-hours a day, seven days a week on a lockbox without an appointment required. The more restrictions on easy showings the harder it is to sell. You’d be amazed at how many houses require appointments to be seen, or require the listing agent to be present for showings, or only allow showings at inconvenient times. All of these are obstacles to the sale of the home.
Whose Fault Is It?
When a home is not to selling the seller naturally wants to know why that’s happening. The answer is simple, it’s either the agent’s fault or the sellers fault. That’s because the agent is responsible for marketing the home. The seller is responsible for the price and access.
As a seller you must determine if the house is being properly marketed. Frequently, when a home fails to sell, it’s because the agent is working for such a low commission that he/she doesn’t have enough money to properly market the home. Even if the agent has the money, the question is whether the right marketing is being done. If not, find an agent who can properly market the house.
If the marketing is being done well and the home isn’t selling, make it easier to show.
If the home is properly marketed and easy to show, but has not sold: Lower the Price!
Thursday, June 7, 2012
DC Condo & Co-op Market Sizzles in May
The Greater Capital Area Association of Realtors has
released the most recent market report for condominiums and cooperatives in DC
and it shows the market is very strong. (Click here for the report.) The
inventory is severely down, the contracts taken are way up.
The market for condos and co-ops has clearly shifted to a
seller’s market. The inventory of available condos and co-ops is down 33.1%
year over year (857 vs. 1,281) and demand is up with an increase in contracts
taken of 16.7% (1,452 vs. 1,244).
Supply Side
The drop in inventory is particularly striking when looking at historic trends. For the past seven years inventory of available condos and co-ops builds an average of 33.7% between December and May. From there it drops until September when it builds again for the autumn market. However, this year the increase has only been 13.5%. This indicates that there will be a continued shortage of available condos and co-ops throughout the summer.
The drop in inventory is particularly striking when looking at historic trends. For the past seven years inventory of available condos and co-ops builds an average of 33.7% between December and May. From there it drops until September when it builds again for the autumn market. However, this year the increase has only been 13.5%. This indicates that there will be a continued shortage of available condos and co-ops throughout the summer.
The only indication of a slowdown on the supply side is that
the inventory of new condos coming on the market increased by 3.4% year over
year in May (429 vs. 415).
Demand Side
The number of contracts accepted in May was up 6.9% year over year (324 vs. 303). Here again, this is a strong number, but it’s not as strong as the rest of the spring has been. Also, May is typically a stronger month for contracts than April is and this year contracts were down from April to May, which is an indication of a strong market, but not one that’s continuing to tighten dramatically.
The number of contracts accepted in May was up 6.9% year over year (324 vs. 303). Here again, this is a strong number, but it’s not as strong as the rest of the spring has been. Also, May is typically a stronger month for contracts than April is and this year contracts were down from April to May, which is an indication of a strong market, but not one that’s continuing to tighten dramatically.
Stand Out Performance
Out of the entire market for condos and co-ops in DC, the price bracket between $500,000-$600,000 has been the strongest. The number of available properties has dropped 39.3% year over year (71 vs. 117) and the number of contracts for these properties has jumped 44.9% year over year (171 vs. 118).
Out of the entire market for condos and co-ops in DC, the price bracket between $500,000-$600,000 has been the strongest. The number of available properties has dropped 39.3% year over year (71 vs. 117) and the number of contracts for these properties has jumped 44.9% year over year (171 vs. 118).
The Bottom Line
The market is clearly on the seller’s side. As a buyer it’s critical that you bring a strong offer and be prepared for multiple offers on a home. We’re still not seeing large price increases, but escalation clauses are de rigeur now. If you are a seller and you are not getting an offer within a week your home is either not being marketed correctly or is priced too high.
The market is clearly on the seller’s side. As a buyer it’s critical that you bring a strong offer and be prepared for multiple offers on a home. We’re still not seeing large price increases, but escalation clauses are de rigeur now. If you are a seller and you are not getting an offer within a week your home is either not being marketed correctly or is priced too high.
Strong DC House Market Tightens Further
The Greater Capital Area Association of Realtors has
released the most recent market report for houses in DC and it’s striking what
it shows. (Click here for the report.)
The market for houses in Washington, DC has shifted to a seller’s
market. Indications of this come from
both the supply side with a decrease of 34.7% in available houses to buy versus
last year and from the demand side with a .2% increase in the number of
contracts accepted this year vs. last.
Supply Side
Typically in DC the inventory of homes to sell rises from December until May and then slowly drops throughout the summer before a small autumn bump. But, for the first time in over eight years the available inventory is lower in May than it was in December.
Typically in DC the inventory of homes to sell rises from December until May and then slowly drops throughout the summer before a small autumn bump. But, for the first time in over eight years the available inventory is lower in May than it was in December.
The current level of available homes is down 34.7% from the
same month in 2011 (814 vs. 1,247). But the majority of that decline happened
from September 2011 through December of 2012 when the inventory plummeted 26.6%
from 1,124 to 825 available homes.
The number of new listings on the market for the month of
May dropped 8.3% compared to last year (483 vs. 527). This shows that the
supply is still tightening but not at the torrid rate that it did from last
autumn to last winter.
Demand Side
Interestingly, the demand side is actually increasing even as the inventory shrinks. The number of contracts accepted year-to-date is up only .2% (1,828 vs. 1,824). But last month the number of contracts was up 3.5% compared to May of 2011 (443 vs. 428). This indicates that the demand is increasing as the year has progressed despite the lack of inventory.
Interestingly, the demand side is actually increasing even as the inventory shrinks. The number of contracts accepted year-to-date is up only .2% (1,828 vs. 1,824). But last month the number of contracts was up 3.5% compared to May of 2011 (443 vs. 428). This indicates that the demand is increasing as the year has progressed despite the lack of inventory.
Stand Out Performance
Out of the entire market for houses in DC, the price bracket between $800,000-$900,000 has been truly exceptional. The number of available homes in that range plummeted 51% year over year (25 vs. 51); and the number of contracts for those homes has increased 31.8% year over year (116 vs. 88).
Out of the entire market for houses in DC, the price bracket between $800,000-$900,000 has been truly exceptional. The number of available homes in that range plummeted 51% year over year (25 vs. 51); and the number of contracts for those homes has increased 31.8% year over year (116 vs. 88).
The Bottom Line
If you are a buyer in today’s market you need to bring your best offer right from the beginning; there is no room for second chances on a house you love. As a seller, if your home is on the market for more than two weeks and has not generated an offer either it’s not being marketed correctly or the price needs to drop.
If you are a buyer in today’s market you need to bring your best offer right from the beginning; there is no room for second chances on a house you love. As a seller, if your home is on the market for more than two weeks and has not generated an offer either it’s not being marketed correctly or the price needs to drop.
Monday, June 4, 2012
Special Considerations for Co-op Special Assessments
The worst news most condo and co-op owners can hear is that
their building is doing a reserve analysis and it appears that the building
does not have enough money in reserve. What this means is that the building should
have been saving more money (for necessary building repairs and improvements)
and is now short. When this happens the building will need to levy a “special
assessment” on owners to raise more money for repairs and improvements. This
special assessment can range from just a couple of hundred dollars to well over
$100,000 per owner!
When a special assessment comes due co-op owners are in a
much better position to handle it than condo owners. That’s because
cooperatives can take out an “underlying mortgage,” which means the co-op can
mortgage itself as collateral for a loan. (Condos don’t have this option and
the assessments usually have to be paid in one lump sum!) There are several
nuances that a co-op owner must consider when they find out that their building
is about to take out an underlying mortgage.
Generally, when a cooperative building finds that it is
short on funds it will allow owners to either pay for the assessment in cash
when it come due OR finance the assessment as part of an underlying mortgage
(ULM). So, what should a co-op owner do?
If You’re Not Moving
it Doesn’t Matter
If you are not moving during the course of the underlying mortgage (ULM) then it doesn’t really matter if you pay off the assessment or take out a ULM. Whatever meets your financial needs is fine. But, the reality is that most ULMs are at least 20 years and the odds are that you’re not going to be in one place for 20 years. So it is important to consider the long-term consequences of your decision.
If you are not moving during the course of the underlying mortgage (ULM) then it doesn’t really matter if you pay off the assessment or take out a ULM. Whatever meets your financial needs is fine. But, the reality is that most ULMs are at least 20 years and the odds are that you’re not going to be in one place for 20 years. So it is important to consider the long-term consequences of your decision.
Should you pay off
the special assessment?
Buyers are very sensitive to what the fee for a particular unit is. When a fee is very high the buyer will be less inclined to buy the home. Even when the fee is mostly comprised of a ULM the buyer will be less interested in the home because the buyer’s monthly holding costs will be higher.
Buyers are very sensitive to what the fee for a particular unit is. When a fee is very high the buyer will be less inclined to buy the home. Even when the fee is mostly comprised of a ULM the buyer will be less interested in the home because the buyer’s monthly holding costs will be higher.
Underlying Mortgages will generally have a higher interest
rate than a regular “institutional” mortgage. That’s because the bank is
generally making a loan that cannot be resold like a “regular” mortgage could.
So, if you own a co-op and have equity in the home, it may
be better to get a “cash out” refinance than take the ULM. That means that you would
get a whole new mortgage to pay off your existing mortgage and take out extra
cash from your equity to pay off the special assessment. This will allow you to
pay off the assessment over 30 years (instead of the usual 20 or few years) and
have a lower interest rate; the lower rate and longer repayment mean you’re
monthly payment will be lower than paying a ULM.
Or, if you have the cash available to pay off the assessment
why would you pay interest on a ULM for 20 years? That’s a whole lot of
interest on money that you don’t need to pay.
These points would indicate that an owner should pre-pay the
assessment when possible. But things are not always what they seem.
Should you take the
Underlying Mortgage?
Buildings get reputations for having high fees. Once a
building gets that reputation agents and the public will not necessarily take
the time to review what the fee for a building is. They’ll see the address and
the photo of the building and dismiss it as having a high fee immediately.
This means, as an owner many agents and buyers will not take
the time to read through information about a property to discover that the fee
is actually lower than usual because the owner pre-paid the special assessment.
Even if the agents and buyers do look at the unit and
discover that the fee is acceptable they will undervalue your home. That’s
because they’ll look at the most recent sales in the building and compare your
sale price with the prices of other units that have substantially higher fees. It’s
hard to get agents and buyers to acknowledge that your unit is worth more money
because the fee is lower when they see everything else sells for less.
Another consideration is that underlying mortgages are
always assumable. So, with interest rates exceptionally low right now, you can
lock in an assumable mortgage at a very low rate. In the future, when you sell
the odds are very high that rates will be much higher than they are today.
Thus, the underlying mortgage actually becomes a benefit! The next buyers can
borrow money at a much lower rate than they will be able to with an
institutional mortgage.
Remember, the interest on ULMs is tax deductible so they
give you the same financial benefits as an institutional mortgage.
The Devil is in the
Details
Before you can make a decision about whether to take an underlying mortgage or not you will need to know the details of the ULM. You will want to carefully consider if you can afford to pay off the assessment in cash. If not, you will want to carefully consider whether to take a cash-out institutional refinance or just accept the ULM. You will also want to think about how long you plan on staying in the property and how the assessment will affect your long-term financial position.
Before you can make a decision about whether to take an underlying mortgage or not you will need to know the details of the ULM. You will want to carefully consider if you can afford to pay off the assessment in cash. If not, you will want to carefully consider whether to take a cash-out institutional refinance or just accept the ULM. You will also want to think about how long you plan on staying in the property and how the assessment will affect your long-term financial position.
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