Hi, friends.
Spring is a busy season for home buying. If you’re condo-curious or officially in the market for one, this one’s for you.
Buying a condo is exciting, but searching for, buying and living in a condo differs from going through the process with a more traditional home in several ways. Whether it’s your first-ever time buying or your first time shopping for a condo specifically, keeping these helpful tips in mind can help make the process a little easier, and a lot more enjoyable.
Picture yourself living there.
Keep in mind that, with shared amenities and neighbors potentially living above, below and beside you, living in a condo can be a lot like living in an apartment. Before signing on the dotted line, make sure you’ve considered what living in a condo would really be like. If low-maintenance living is your main goal, it’s probably a good match. If you want a sprawling backyard or round-the-clock, cocoon-like quiet, then maybe not so much.
Familiarize yourself with association fees.
When buying a condo, you won’t just be taking on a mortgage. You’ll also be required to pay association fees, which go toward things like property maintenance and seasonal services (think snow removal and landscaping). Find out how much each association’s fees are, when they’re due and what they cover.
Other costs to know about include homeowners’ insurance (a condo’s homeowners’ association, or HOA, typically offers insurance for the common areas, but in all cases, buyers should carry additional coverage and consult an insurance agent). Also: Ask about assessments—extra fees that might be charged ahead of a big remodel or maintenance project.
Make a list of must-have features.
Just as you would if you were shopping for a single-family home, make a list of the features and amenities you really want. Love swimming a few early-morning laps or catching some sun on warm weekends? Put a pool on that list. All about that Sunday Funday cookout? Get a place with a shared grilling space. Plan to bring Fluffy or Fido with you? Make sure pets are welcome. Even if you don’t use that state-of-the-art gym or swanky parking garage, remember: Future buyers might go bananas over them, which is good news for your condo’s resale value.
Check out each condo’s property management company.
Property management companies oversee every aspect of a condo community’s operations, from big-picture (maintenance, upkeep) to everyday (rent collection, guideline enforcement). A little extra legwork (read: Googling, reading reviews) will reveal a management company’s reputation, track record and reliability. A condo’s value within the marketplace largely depends on how well kept its community is, and a good, experienced management company always keeps that in mind.
Find the right real estate agent…
Condos come with unique characteristics (associations, fees and regulations, to name a few). A real estate agent who specializes in, or has experience with, condos can help you navigate the search process and will know what questions to ask. Savvy agents will be aware of problems within condo communities, ranging from structural to financial to managerial, and be able to advise on potential resale value.
…and mortgage professional.
Securing financing for a condo can be more complicated and complex than for buying a more traditional home. Lenders impose specific restrictions and criteria on condos: They might require that a certain percentage of units in the building are owner-occupied, and they might be particular about what percentage of units in a building one individual owns. Loan-to-Value, or LTV, ratios and restrictions can be more arduous for condo buyers, too. Work with a mortgage pro who knows the ins and outs, and who’s knowledgeable about potentially helpful tools, such as Federal Housing Administration (FHA)-backed loans.
Ask to see—and actually read—the condominium documents and rules and regulations.
Doing this before you buy will make you aware of what’ll be expected of you as an owner, and it will eliminate any surprises.
Until next time,
The BRIGS team
