Purchasing a Condo - Things to ask....

Purchasing a condo - things to ask....
Condo living is one of those tricky areas in real estate that you need to do your homework on before you pursue purchasing one.  Living in one can be one of the greatest things to have for those not wanting yard maintenance, as a 2nd home, investment purposes or the frequent traveler.  But, if you are in the market to purchase a condo, there are certain things you should be aware of that is different than a normal single family home.  Be sure you have clarity in the issues upfront before you make your offer. (Condo abbreviated for condominium)

 Find out about the condo's HOA. 
1. See exactly what is covered in the fees and what is not.  Sometimes they have things like water or gas included which would affect your monthly expenses.

2. Ask for their insurance policy to see what is covered and what the limits are.  Usually they have "blanket" insurance which makes you responsible for everything on the inside (sheet rock in or sometimes even the plumbing).  In other words, in most cases, if there is a fire that destroys your unit and they choose to rebuild, you will be left with only a "shell".  Your insurance needs to be able to cover all new fixtures, flooring, probably windows and doors, etc. and of course your personal belongings.

3.  Make sure there is not an HOA within an HOA.  An example would be a gated community with single family homes and condos.  You pay the community's HOA plus the condominium HOA.

4.  Some condos have a 1st right of refusal.  Even though this is to be disclosed in the listing information, but in some instances, the owner is not even aware of this in their rules and bylaws.  What this means, once you have an agreed contract with the seller, it is still not "officially" yours yet.  The contract has to be posted at some designated place for all of the current residents to see.  If there is a resident who wants to purchase that same unit with the same terms, they can override your contract.  Not a pleasant outcome for the hopeful buyer.  Just make sure you know what to expect.

5.  If you are obtaining FHA financing for your condo purchase, check out this website https://entp.hud.gov/idapp/html/condlook.cfm to see if the complex you are interested even qualifies before you tour the complex.

The above items are just some guidelines to help make you more aware of some of the things you need to be prepared to deal with.  Just remember that if you do your homework beforehand, it will save you afterhand! 

If you are looking to purchase a condo in the Lake Ray Hubbard area, I would love to represent your best interest!

HAVE A GREAT DAY!