If the idea of owning a single-family home is a bit intimidating, then you may be better off purchasing a condo. You'll own a piece of a shared community, which is quite the different kind of real estate purchase. Be sure to know these 3 things about condos before you make an offer on a property.
Management May Need To Approve Buyers
Be aware that the management company for the community that a condo is in may request that they approve all buyers, even if you are purchasing a condo through an individual instead of the company that owns the building. This is done for several reasons, but a common concern could be due to the type of financing you are requesting.
For instance, FHA loans could require as little as a 3 ½ percent down payment for those with a credit score above 580. The management company may see this type of buyer as risky, since they will also be responsible for paying condo association fees in addition to their mortgage.
Condos Have Specific Rules
Each condo building will have their own rules and regulations that owners must follow. These are rules that have been decided on by board members and unit owners, and breaking the rules can result in a fine. While many people like these types of rules because it ensures some order in a shared community, others may not be a fan of following rules when they are living in a unit that they own.
Common rules can include whether you are allowed to have a loud pet, what items can be placed on a balcony, and even what modifications you can make to the unit.
You May Pay A Special Assessment
It is always a good idea to look at the community meeting notes before you buy, and take note of how much money they have in reserve from association fees. If a big repair needs to be made to the building, such as tuckpointing or a new roof, the condo association may request that a special assessment be paid by all owners to cover the cost of repairs if they are short. This can be a large expense that you might not have the cash on hand to pay.
These are just a few things to consider when it comes to purchasing a condo. For more info, be sure to work with a real estate agent to get you more info about the specific building you are interested in.Share
4 May 2017
Although I've never worked professionally in the real estate business, I sure know my way around it. How, do you ask? Well, I have simply rented a lot of different places and worked with a lot of different landlords and real estate agents. In the past 7 years I've lived in 11 different houses or apartments, none of them my own. In finding those 11, I have looked at literally hundreds of apartments. I used to hate house hunting, but now it's kind of fun. You just need to know what you want and the right questions to ask. Hopefully this blog can help you learn some of the tricks of the trade from another renter like yourself.