Condos which is short for a condominium are the most urban, dynamic, and cost-efficient choice that many buyers love to opt for. This is the most ideal housing option for those who value proximity to cities, want a walkable lifestyle and for those who tend to have fewer responsibilities of the house yet at the same could avail of amenities like fitness centers, tennis courts, and recreational facilities like pool or spa that too at affordable investments.
Structurally, a condo is a single residential unit that an individual owns inside a multi-family building. In addition to mortgage and principal amounts. Condo owners pay monthly or quarterly fees to homeowners association for the upkeep and maintenance of a condominium complex. Let’s take a look at the 6 of the best condo-buying tips. You should keep in your mind before starting your condo search:
Does Condo Fit Your Lifestyle:
Condo living may be an ideal option for you if you are planning to downsize. If you prefer a property that requires minimal maintenance; or when the budget on the upkeep of the residence is unaffordable for you.
Condo fits the lifestyle of many as it offers on-site amenities like; a fitness center, sauna, swimming pool, enhanced security features, on-site management, community room, on-site recreational activities.
It also does not require maintenance on the part of the resident; as condo owners make regular payments for such common areas and assets. Condos come with a lesser responsibility and lesser work; as compared to owning a single-family house where you have to mow the lawn or trim the hedges yourself. Otherwise were laying out $5,000 or more for a new HVAC unit or roof will be a burden for you.
Hire An Experienced Real Estate Agent Who Deals With Condos:
Employing real estate agents who know how to sell a condo is a key decision in the transactions involving condos. An experienced realtor knows and is aware of the contingencies, contractual obligations; and important documents that a purchasing of a condo brings in.
A real estate agent further has to have to know how to guide you through buying and selling process; of different types of residential houses which is different from selling a condo. Your agent must be knowing the latest condos developments in your areas; and also must be able to tell you issues and negatives effects that may come in condo living. Check our services, price, lifestyle, and more on homes for sale in Petaluma CA.
Obtaining Finance For Your Condo Is Complex And Lengthy:-
Mortgage investor like Fannie Mae, Freddie Mac, the FHA; and VA approves the loan only if your condo project is 100% complete; and is not subject to additional work in phases. The home loan process with these mortgage investors may find some complications; if these agencies have not maintained your condo project on their list.
For qualifying for a conventional loan also, the borrower must be buying in a complex that is 90% sold out. And, if you are taking the loan for an investment property; then the condo project must fulfill the criteria; that at least 50% of the properties must be a primary residence or second home.
Some mortgage investors also set guidelines for a homeowners association to have fidelity insurance; or set a cap on the number of homeowners within an association. Who can be delinquent on their association dues or set some budget rules that the associations must abide by?
These guidelines are imposed to ensure that the homeowners association isn’t likely to fail otherwise this can have a huge effect on your property value. The specific rules rely upon the sort of credit you’re applying for. You may also have a hard time getting a loan in your condo have hotel amenities like a concierge or maid service.
Know What The Condo Makes Room For:-
Each condo community is different in structure, amenities, and even condo association from the other condo communities. The similarity rests only until the same roof of each community but outside its different from one another.
When evaluating a condo, check both the interior of a single unit as well as the state of things in common areas. Look over the upkeep and maintenance and working conditions of the exteriors and shared common areas as run by the condo association. Also, check how many spaces for garages or covered parking are allotted to each resident. If visitor space is allowed and if yes, whether it is chargeable or free.
Know About The Condo Fees:-
Each condo community charges regular monthly, quarterly, or annual fees from each resident to cover expenses such as maintenance and insurance. Generally, condo fees are divided into three main categories: (1) Common areas; (2) Utilities; (3) the reserve fund.
If your condo has more amenities like pools, fitness centers, tennis courts, or a clubhouse then the condo fees will be high for its upkeep. Examine if the condo fees cover utilities such as water, sewer, trash, heat, electricity, cable, and Wi-Fi. Additionally, condo fees also include snow and garbage removal, landscaping, lawn maintenance, road maintenance, water and sewer services, and trash pick-up.
Every condo board must maintain a large amount of reserve fund as a savings account which will cover inevitable and big expenditures like roof replacement, etc.
Ask Whether Special Assessments In A Condo Is Applicable Or Not:
A special assessment is an additional charge paid for a specific period of time by condominium owners besides fixed monthly maintenance fees. HOA makes and enforces bylaws without any type of approval from individual owners to put this special assessment. There could be various motivations to add unique evaluation yet some normal instances of this charge are:
(a) Low Reserve Fund: Low apartment suite charges or unanticipated costs are the primary justification for the organizations to set down unique appraisals to expand the save store.
(b) Unexpected Expenses: There are some expenses like, when some disaster strikes or some emergency repairs or when your community does not have enough cash set aside in reserve funds, all these charges are not part of the budget. Homeowner’s insurance also does not cover such costs, and then such expenditures can be meted out by adding fees in the form of special assessments.
(c) Lawsuit: The condo corporation may impose a special assessment upon its owners to raise funds if you lose a lawsuit or judgments are not suitable for you.
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