Tips for Buying a Condo

Tips for Buying a Condo

If you are looking to buy real estate, a condominium could be the way to go. Condos are basically individually owned apartments. Buyers like them because they provide them with the advantages of owning appreciable real estate that is not as expensive as a house.

Condos are located in a buildings managed by the Homeowner’s Association. The association takes care of all repairs for a monthly fee and makes decisions for the collective. This eliminates the need for homeowners to take care of costly repairs, but some monthly fees can be quite expensive.

Condo living is not for everyone, but some home buyers see them as a great way to start building real estate wealth. If you are shopping for a condo, here are some things to keep in mind.

Work with an Agent with Condo Experience

If you are looking for a condo, it’s advisable to work with an agent with condo buying experience. He or she will help you address specialized concerns and assist you in reviewing condo association documents. Your agent will also be able to tell you if the HOA has a history of issues or if there are any structural problems with the building.

Find a Condo That’s FHA Approved

Mortgages for condos may be more complicated than other types of mortgages because, in addition to the condo, the building the condo is in also plays into the equation. The Federal Housing Association (FHA) has a list of condo approved buildings on their web site. Lenders may also have requirements similar to those of the FHA. An experienced mortgage professional will help you find recommended properties that suit your needs.  

Research the Property Management Company

The property management company will be in charge of all repairs on the condo and in the building. When checking out the condo, it’s a good idea to ask questions about who is responsible for maintenance and how responsive they are to issues that may occur. You can also do your own online research to find out what residents have to say about the building’s management.

Review Fees and Regulations

During the purchasing process, you will want to find out how much the association charges. This monthly fee can range in price. Make sure you can afford the rate before agreeing to the purchase. Also check if there are any ‘special assessments’ on the horizon for bigger projects.

HOA’s may also have rules and regulations regarding everything from how much noise you can make in the condo to what color you can paint the walls. Make sure you can live with these rules before signing on the dotted line.

Consider Amenities

Like an apartment building, a condo building may come with amenities like a gym, parking, a swimming pool, a rec room and more. Be sure to find out what each building offers and factor them into your purchasing decision.

Condo living is a lower cost way to get in the real estate market. However, there are special considerations that must be made. The tips in this article will serve as valuable guidelines on your journey.