Real Estate: Condo-Buying 101
So you’ve made the exciting decision to purchase a condo – congratulations! While buying a condo is extremely exciting, there are also a lot of differences in comparison to purchasing a house. But as long as you know what you’re getting into ahead of time, you should be all set. Here are a few things to think about to make purchasing a condo much easier and enjoyable for you.
Finances:
Something you need to keep in mind is the monthly cost of Homeowners Association (HOA) fees – this covers the cost of typical maintenance and repairs. Dues can range up to over 50 cents per square foot of your condo – every month.
But when it comes to getting a good deal on your condo, it’s not always just about the lowest monthly fees. Sometimes, condo community fees pile up for years from not collecting enough dues from residents, and then current residents end up paying huge amounts to fix doors, walls, elevators, and more.
So when it comes to getting the most out of your bills, don’t just look at the price of the condo and the lowest monthly fees – think about the value. If two properties come fairly close in price, make sure to look into what amenities you’re getting for your monthly dues – a doorman? a cleaning service? a pool? a work-out facility? Looking into these assets will help you figure out where you’re getting the most for your dollar.
Make sure to sit down with your real estate agent and look through the financial documents of the community you’re considering moving into, so that you’re aware of upcoming assessments, and whether or not the property can afford to cover all needed repairs and upkeep. After all, this is an investment, and you want to make sure you’re getting enough value out of this purchase. If you don’t have a real estate agent yet, get one!
Community Policies
The rules and regulations of the community you move into will actually be just as important as the finances. These are most often known as covenants, conditions, and restrictions – or CC&Rs. It’s crucial that you pay special attention to these policies BEFORE you purchase your condo, so that you know exactly what you’re getting into, what’s allowed, and what’s not. For example, you don’t want to purchase a condo and then find out that they don’t allow pets if you have a special companion.
Other regulations can affect how you decorate and invest in your condo – including bans on hardwood floors, design aspects, and more. Sometimes the regulations can be extremely specific too – such as whether you can put something on your front door, or your balcony, and more. This could mean that the grill or patio furniture you’ve dreamed about may not be allowed.
You’ll also want to ask about parking rules, if you can have guests park overnight, how many spaces you get, and more. There are plenty of communities that will have exactly what you want and need, but there are also some communities that won’t give you what you hoped for. That’s why it’s important to know exactly what you’re getting into.
The Condo-Living Lifestyle
You also need to remember the condo lifestyle – you’ll be working a lot with the property’s management, so you’ll want to make sure they’ve gotten good reviews from other residents. Community living also means sharing walls with neighbors, occasionally having to abide by quiet hours, and more.
There are plenty of positive aspects of purchasing a condo as well – there’s a strong community feel, you get to know your neighbors easier, it often feels safer if you are living alone, and more. Think about all of the pros and cons when it comes to deciding if you want to purchase a condo or a home. The more you have thought about ahead of time, the readier you’ll be!
Make sure to sit down with your real estate agent and look through the financial documents of the community you’re considering moving into, so that you’re aware of upcoming assessments, and whether or not the property can afford to cover all needed repairs and upkeep. After all, this is an investment, and you want to make sure you’re getting enough value out of this purchase. If you don’t have a real estate agent yet, get one!
