Things to Look for When Buying a Condo
By Real Estate Team
Unlike buying a single-family home, buying a condo requires you to take into account a few different considerations prior to purchasing. Many real estate markets have a lower purchasing price for condos than a single-family residence. Here are a few things to look for when buying a condo.
Things to Look for When Buying a Condo
This post outlines some of the factors you need to bear in mind when buying your first condo and new home. They’re simple tips to consider when buying your first condo and preparing for homeownership.
Determine Whether a Condo is the Right Fit
Before buying your first condo, it’s important to ask yourself whether a condo is an ideal option for you. The trick here is to weigh the pros and cons of buying a condo over a single-family residence and whether you have to make any renovations or anything. For instance, the major difference between a single-family residence and condo is the proximity to your neighbors.
Hire a Real Estate Agent Who Is Experienced at Selling Condos
Selling a condo is different from selling vacant land, a single-family or multi-family home. A significant difference, for example, is that most communities will require you to sign a contract in addition to the typical sales contract before closing. The contract will usually require you to state that you agree and understand the association rules and regulations.
Obtain Financing
Financing a condo is typically different from a single-family residence. Obtaining financing to purchase a condo can be tricky as many loan products and lenders don’t allow condo purchases. Many lenders and programs have strict regulations for purchasing condos, which explains why condos are often purchased with cash.
Know What the Condo Includes
It’s always critical to find out exactly what your condo includes. This may seem like an obvious tip but you want to make sure your condo includes additional storage or reserved parking, for example. You want a condo where you at least get additional parking for your guests who visit.
Know What the Association Fees are and What They Include
Most condo communities have a periodic fee that is required by each resident. The association fees are used to cover common expenses such as maintenance and insurance. Well-run condo communities will be happy to share their financial statements with potential purchasers. It’s crucial, therefore, to find out how much you’re expected to pay for association fees as that could determine whether you can afford a condo or not. Otherwise, you can continue to search for the cheapest home you can afford.
Predict Your Future Plans
While it’s impossible to predict what will happen in the future, it’s important to have a good idea of your future plans — a good tip to follow before buying a home. For instance, if you’re planning to remain in the condo for a decade, then it’s rate of value appreciation is not as critical if you plan on moving in one or two years.
Bottom Line
These are just some of the things to look for when buying a condo. With the right tips, buying a condo can be a very exciting and smooth process. Do your due diligence and make sure you have as much information about the condo before making your purchase. It’s also important to research the maintenance and management company and review the association rules.