Some buyers will grapple with the decision whether to purchase a single family residence or whether to purchase a condo. There is a difference between buying a home and a condo. Once a buyer decides that buying a condo is the right choice, it's important they know how to do so and what they should be on the lookout for!
About a month ago, I wrote an article here on ActiveRain that was a dummy proof guide for buying your first home. It was very well received and the feedback was positive.
Without further ado, I'm pleased to present a dummy proof guide for a buying a condo. Below are three tried and true tips for buying a condo. Read on to learn about the condo buying process in general and also what you you should be on the lookout for!
Hire A Realtor® Who Has Experience With Condos
One of the biggest mistakes that condo buyers make is they do not understand the importance of hiring a Realtor® who has experience with selling condos. Since there are some major differences between buying a home and a condo, it's important that a buyer has an agent who knows what they are.
Depending on the location of a condo, it's highly likely that the purchase contract for condos is different than a single or multi family home. Having an agent who has experience will know how to properly fill out the contract and also what contingencies to recommend to a buyer.
Three of the most important interview questions to ask real estate agents when buying a condo are;
- How many condos do you sell on average in a year?
- What additional things should I know about buying a condo?
- Are there any additional contingencies that I should be aware of when buying a condo?
Understand That Condo Financing Is Different
The financing for a condo, in many cases, is much different than the financing for a single family home. If you're going to be obtaining a mortgage, knowing what type of mortgage is best for you is very important when buying a condo.
It is fairly common that some condominium communities are not eligible for FHA financing. If a buyer is going to be applying for an FHA mortgage, it's important to understand what the FHA condo approval requirements before looking at potential condos.
Be Aware Of Potential Homeowners Association Fees & Rules
When buying a condo, it's important for buyers to be aware of any homeowners association fees and rules. There are PROs and CONs of homeowner associations and condo buyers need to understand a few things.
First and foremost, when buying a condo, it's critical to understand what fees are associated with the homeowners association. These fees are commonly referred to as an HOA fee. An HOA fee is an additional fee that a buyer is responsible for on either a monthly, a bi-annual, or annual basis. Typically an HOA fee will cover the maintenance of the exterior of the condo, utilities, master insurance, and a variety of other items.
Condo buyers also need to be aware of any rules and regulations that the homeowners association may have. These rules are frequently referred to as covenants, conditions, and restrictions or CC&Rs. CC&Rs can potentially restrict the number of pets in a condo, the color the exterior door can be painted, what the quiet hours are, and a variety of other things.
An experienced real estate agent is going to suggest to a buyer that they make the offer contingent on review of any CC&Rs. Not only does the buyer have the ability to review the CC&Rs but so does their attorney, if they decide to hire one.
Final Thoughts
In my previous experiences helping buyers who are thinking about buying a condo in Rochester NY, I always make it a point to first help a buyer understand the difference between buying a home and a condo.
Once a buyer determines that they want to purchase a condo, it's vital to their success that they understand what to expect. As you can see from the above dummy proof guide for buying a condo, there are certainly a few additional considerations that need to be carefully evaluated. The last thing a condo buyer wants to have happen is to purchase a condo that is part of a nightmare homeowners association.
If you're looking for more information pertaining to buying a condo (or selling a condo), check out this resource from Bundlr that provides the best articles for buying or selling a condo!
Other Condo Buying Resources
- Complete Guide To Buying A Condo via Storify
- 6 PROs and CONs to Buying A Condo via NJ Realty Homes
- Is Condominium Living Right For You? via Frederick Real Estate Online
- Should You Buy A High Rise Condo via Las Vegas Luxury Home Pro
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