 | |
February 14, 2012 | | | Things You Need to Know Before You Buy a Condo | | | The Tip:
Make sure you're asking the right questions—and getting straight answers—before you decide to buy a condo.
Owning a condominium can be great alternative to single-family home buying. You can often get more bang for your buck in square footage and features, and you're not solely responsible for maintenance and upkeep.
Here are some of the issues to look out for while you shop for your condo.
HOA Dues
Most condo developments operate with a Homeowners Association (HOA), a group of residents who enforce community rules and collect monthly or annual dues. Leigh Gillig, real estate Endorsed Local Provider (ELP), advises buyers to always find out how much the dues are and what they cover.
"Association fees usually cover insurance on the exterior of the building, but coverage can differ," she said. "Utilities are always a question. Ask if any of them are included in the fees."
You also need to know the last time the HOA dues were raised. If it's been several years, you can bet a hike is coming soon.
FHA Approval
Even if you're paying all cash or getting a conventional mortgage to buy your condo, you'll want to buy in a development that's approved by the Federal Housing Administration (FHA), real estate ELP Patrice Miles said.
An FHA-approved condo will have a stable community and HOA that operates on a budget with healthy cash reserves. "It also means their rental-to-occupant ratios are normal and everyone is up-to-date on their dues," Patrice added.
You can look into these issues too. An HOA shouldn't have a problem allowing a potential buyer to review its books or answering your questions. If they do, this isn't the condo for you.
Assessments
Periodically, condo residents are required to share the costs for assessments—development-wide improvements like new roofing or road maintenance
"A buyer will want to know if there are any upcoming assessments before they buy," Patrice said. "Who wants to buy a condo and then get hit with a $2,500 roof assessment?"
Get Professional Advice to Make the Right Choice
These are just some of the issues unique to purchasing a condo. Why not work with a professional who's been there before to make sure no stone goes unturned? Whether you're buying or selling a house or condo, one of Dave's experienced real estate ELPs will help you save time and money. Contact your ELP today!
| |  | | | | | |
No comments:
Post a Comment
Keep a civil tongue.