Kevin McCormally: I am Kevin McCormally of Kiplinger's. I am here with Pat Esswein, the Housing Editor of Kiplinger's Personal Finance Magazine, to talk about buying a condo today. Pat, for several years we have been saying there are great buys in condos out there, is it still true?
Pat Esswein: It is still true. The National Association of Builders says that we can expect heavy oversupply of condos through 2009. So, sellers are still having to cut prices and offer a lots of incentives like upgrades and other amenities.
Kevin McCormally: So, this is a good time to buy?
Pat Esswein: It can be. If you expect you'll own this place for at least the next several years, you won't be able to expect quick appreciation in the value of the condo. So, you need to be able to stick with it for a while.
Kevin McCormally: Well, what kind of homework do I need to do before I make an offer?
Pat Esswein: You really need to educate yourself about your local market. You can go to the websites of your local multiple listing service to see what kinds of units are on the market and what the prices are currently. You can go to the websites of the condo developers or the individual condo developments.
Kevin McCormally: Pat, you mentioned before that Craigslist is a good resource too?
Pat Esswein: It can be a really interesting resource. Often times, sellers who are selling their units themselves will put ads on Craigslist and they may reveal quite a lot about why they are selling, or how desperate they are to sell.
Kevin McCormally: Pat, we know there are lot of condos that are purchased during the boom by speculators hoping they will flip them for a quick profit. Is there a problem if I buy into a project that a lot of speculators have bought into?
Pat Esswein: Yeah, because speculators are the most likely to buyers to end up ultimately for closure. If they bail out, they won't be paying their condo dues and viewing your fellow owner occupants will have to make up any sure fault to pay the building's bills.
Kevin McCormally: Thank you, Pat.
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