Q & A with Dottie Herman

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Q1 - What type of loan (equity line of credit or loan) would be better to take out to pay off credit cards and do minor home improvements on an investment property? Total debt is $87,000 and have 2 credit scores over 710.

A - There are a few ways to use equity from your home to pay off debt and make home improvements. A home equity line of credit is a variable rate, and is tied to the Prime Index Rate. Or, a conventional loan with an equity refinance would provide a fixed rate. There are many mortgage options available depending on the product that will best fit your needs. It would be best to complete a complimentary consultation, which would involve a mortgage pre-approval to determine which product makes the most sense for your situation.

Please contact us if we can be of further assistance.

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Q2 - I have an opportunity to purchase a Fannie Mae property that needs work, 75% of which I can do myself. I plan to make an offer of about $40,000 less than they want, because the house not only needs a lot of work, but I won't be able to sell right away, I will rent. Is there anything I should check out beforehand? I know the house is offered AS IS, so I think I have a chance. Thanks.

A - Without seeing the property, it's hard to answer your question. Generally speaking, it's always advisable to have a qualified engineer and/or home inspector view the property before committing.

"As is" means that you are getting the home in the condition that it is presently. An inspection can help to make you aware of defects, and can estimate how much work needs to be done to get the property ready for sale and/or rent.

Also, check comparable sales and rentals in the area for properties similar to the one you are considering to ensure that the work won't overprice the property. A real estate professional can assist you in determining market price.

In addition, if you do choose to proceed, consult an attorney with experience in this field, as they can guide you through the process.

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Q3 - Does your "average price per square foot" refer to gross feet, which sometimes includes a percentage of public spaces, such as elevator shafts, or "carpetable" feet? Do you have data on maintenance and real estate taxes per square feet? If not, can you get it?

A - The average price per square foot is based on the net square footage, also known as the "interior perimeter," which means inside wall to inside wall. Some condominiums do include certain common areas in these totals, but that tends to be the exception, not the rule. We do track the maintenance per square foot (per month) for the co-ops and common charges/real estate taxes per square foot for condo sales that occur in each quarter. Our latest Elliman Report on Manhattan provides this information in the narrative. I recently created a chart on this metric for both co-ops and condos. I hope you find it useful.

Please note, the enclosed metrics are a study of the market as a whole and are not intended to provide a basis for a specified condominium unit.

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Q4 - Hello, I am a freshman in college. If I am interested in working for a real estate company when I graduate, what major/minor would you suggest for me? What does the interviewer look for in an agent? Thank you so much, I hope to be an agent in NYC one day.

A - We applaud you for considering a career in real estate! Many colleges and universities offer a variety of courses of study and degrees in the field, whether it be in Residential or Commercial Brokerage, Investments, etc. Many different skill sets come into play in becoming a successful agent, including communication, marketing, and technology. Taking courses in these areas will prove helpful, as will acquiring an internship with a successful brokerage firm.

To be an agent, you will need to be licensed. A first step is to check the licensing requirements of the state in which you plan to work, so that you can enroll in a State Approved Course of Study. If you need help in finding a school to take the course in New York, please let us know. We will be glad to give you a list of accredited schools.
Good luck in pursing your passion.

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If you have a real estate question for Dottie, please send it to; Reporters@WPCnews.com