Purchasing condominiums are much different than single family home purchases. There is more information to consider before buying condos. This article offers condo buying guidance for Mercer County NJ first time buyers.
What is a Condo?
Condominiums are buildings with two or more units sharing land and amenities. Shared components belong to the association and each owner has a percentage interest. The specific percentage is based on factors such as unit size. Condo owners are financiallyresponsible for repair of the interior of their own units but share the cost of common items such as land. Because of the common spaces and fees, it is essential for Mercer County NJ buyers to review condo documents prior to purchasing condos.
Information to Inquire About
Mortgage Options
Financing approval may be contingent on certain information on a condominium complex. For example, FHA requires specific owner occupancy rates, sufficient reserves, and several other criteria. Condo complexes that are not or cannot obtain FHA approval will be options for fewer buyers on the market. Buyers using FHA should find out whether a complex is approved prior to submitting an offer.
Rental Units
Every complex will contain a certain number of rental units. Higher owner occupancy percentages are better from a mortgage perspective. Owner occupants also tend to take better care of their units.
Reserves and Assessments
Most condo complexes implement monthly fees. The fees cover expenses for common areas. A portion is also set aside into a reserve account to prepare for upcoming maintenance. It is helpful for buyers to understand how much the condo fee is, what is included, how much it has increased in the past, and expected changes in the future. Buyers should also look into how much is already saved in reserve. If a complex has insufficient funds to cover a extensive repair, all unit owners will be billed for the shortage. This is referred to as an assessment and can be a lot for owners to bear. Ask about past assessments and any anticipated ones.
Rules and Restrictions
Condo owners must comply with rules that single family owners do not. Condo buyers should obtain the rules and regulations before purchasing and make sure the terms are acceptable. Rules can apply to both common areas and interior spaces.
Condo Buying Guidance For Mercer County NJ First Time Buyers
There are conditions to buying any type of property, but condo ownership has some added considerations that buyers should understand. Entirely review all documentation and get help from a real estate attorney. Also think about the resale value of units based on the financial condition of the complex and financing qualification. Contact a real estate agent to provide historical information on sales in the complex. Details helps buyers make an educated decision about a condo purchase. This article on condo buying guidance for Mercer County NJ first time buyers was offered by Joseph Giancarli at REMAX Tri-County. Contact Joseph at 609-587-9300 or jgiancarli@yahoo.com for details on a particular complex in Mercer County NJ or regarding other real estate topics.
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