Condo purchases can be different from single family property purchases. There is more information to assess. This blog discusses condominium purchasing advice for Bedford NH first time buyers.
Definition of a Condo
Condominiums are buildings with two or more units with shared common space such as land and hallways. The exterior belong to the association and every unit retains a percentage interest in it. The exact share is normally based on total number of units. Individual owners are responsible for maintenance of the interior of their particular unit but share the expense of common items such as land. Because of the common spaces and expenses, it is important for Bedford NH buyers to review certain condo documents prior to buying condos.
Things to Consider
Mortgage programs may limit condo purchases based on specific criteria. For instance, FHA requires certain owner occupancy rates, monetary reserves, and several other criteria. Complexes that are not FHA approved will have a smaller buyer pool. Buyers intending to use FHA must find out whether a complex qualifies prior to spending too much effort evaluating units there.
Number of Rental Units
Every complex has a certain number of rental units. High owner occupancy rates are more likely to meet mortgage requirements. Owner occupants also tend to better care for their units.
Reserves and Assessments
Most condominium complexes require monthly fees. The fees help maintain the common areas. A portion is also placed into a reserve to prepare for planned repairs. It is useful for potential buyers to know the amount of the condo fee, what is covered, how much it has increased in the past, and if it will increase again in the future. Buyers should also ask about the existing reserve. If a complex maintains insufficient funds to pay for a major repair, the required amount must be shared among the unit owners. This is referred to as an assessment and can be a significant cost even if divided among all the owners.
Know the Restrictions
Condo owners must abide by rules that single family owners do not. Condo buyers should learn the rules and regulations in advance and make sure the terms are acceptable. Rules may apply to both common spaces and interior spaces.
Condominium Purchasing Advice For Bedford NH First Time Buyers
There are risks to owning any type of home, but condo ownership has some added risks that buyers must evaluate. Entirely read through all documentation and speak to a real estate attorney if necessary. 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 furnish historical information on sales in the complex. Accurate information helps buyers make an informed decision about a condo purchase. This blog on condominium purchasing advice for Bedford NH first time buyers was shared by Jim Miller at Coldwell Banker Residential Brokerage. Contact Jim at 603-801-3987 or firstname.lastname@example.org for information on specific complexes in Bedford NH or for help with other real estate topics.