More Americans have been buying condos because of the lifestyle and affordability. There are different types of condos to consider for your situation. If you want to develop a condo shopping strategy, keep reading.
In this guide, you’ll learn about standard condo amenities and how to compare the prices. Think about the condo unit size and if it’s the right size for your family.
If you want to learn more, check out the common condo buyer mistakes to avoid below.
1. Forgetting to Get Your Loan Pre-Approved
Before shopping, save yourself the stress of financing by getting pre-approved.
The loan pre-approval will give you an idea of how much you can pay for your condo. You’ll get an idea of how much you’ll spend each month.
If you can’t afford to live in the condo, you’ll end up disappointed. Get the pre-approval done, so you know what to expect.
2. Not Understanding Condo Living
Condo living isn’t going to suit every personality. You should consider whether living in a condo will fit your needs. It usually comes down to a personal preference. Some people don’t want to have a bunch of neighbors.
Find a reputable developer and property manager if you choose to buy a condo. Turn to them when you need help. Your property manager will ensure the living situation remains high-quality.
3. Working With a Random Real Estate Agent
Find a trustworthy agent who has found condos for previous clients. Your agent will be your guide as you shop around for condos. They will help you make the right decision.
Work with a local company or Your Community Realty.
4. Forgetting About Mortgage Insurance
Mortgage insurance is the protection you’ll have if you can’t cover the payments.
It isn’t necessary to have mortgage insurance. Insurance payments won’t count toward the mortgage amount.
5. Overspending on the Condo
You should think about your budget and finances carefully before making a decision. You want to avoid overspending on a condo. Think about if you can buy or rent a condo. Don’t let an agent talk you into overspending.
Think about what you can afford each month.
6. Relying on a Verbal Agreement
You should never solely rely on a verbal agreement from a seller. You need a written contract that outlines the details of the sale.
Make sure things you agree on get put into writing. You and the developer will understand your responsibilities and duties.
7. Not Understanding the Condo Regulations and Rules
As a condo owner, you will end up dealing with new rules and regulations, unlike owning a house. Ask for a copy of the condo’s laws and regulations. Read through the booklet, so you understand the rules.
The HOA is the main part of condo properties. The rules are put in place to make sure that the property gets well-maintained. HOA’s will collect dues and make assessments.
The money that the HOA will spend comes from the unit owners. You should find out more about the HOA financials.
Can the HOA maintain expenses? If the reserve fund gets depleted, you could face some problems.
You might end up having to pay higher HOA dues. As a result, you’ll pay way more than you anticipated. Some people will have a reduction in services like janitorial services or pool maintenance.
You could lose property value over time. Neighbors might have to go into foreclosure because they can’t cover the higher HOA fees.
Find a condo community that has a stable financial situation. The HOA finances should remain open to potential buyers. Access the information about yearly balances, annual revenues, and pending lawsuits.
8. Not Inspecting the Condo Grounds
When shopping around for a condo, you’ll want to walk around the property. Don’t take this for granted and base it on how the interior looks.
Examine the property. You could also plan a home inspection before you buy the condo. Avoid issues like clogs, pests, leakage, or mold problems.
9. Choosing the Wrong Location
Some people will need to live in an urban setting close to where they work. If you have access to a vehicle, consider living a little outside of the city center.
You might find a condo with a stunning natural backdrop. Units that have a stunning view will cost more than ones that don’t have the view.
If you can afford to, buy a condo with a lovely view. This will give you an excellent area to look out for and improve the investment. You will likely get a higher amount when you sell the condo in years to come.
When you resell your condo, you’ll find a buyer faster if the area has a lovely view.
10. Forgetting About Common Condo Amenities
When shopping for a condo, think about if you would like particular amenities. Would you like a swimming pool or access to a gym? Some people would like a restaurant, grocery store, or pharmacy in the building below.
You will pay for the amenities, so think about if you would use them.
You Can Avoid Common Condo Buyer Mistakes
Avoid these common condo buyer mistakes. Shop around with an experienced real estate agent. Understand what you’re pre-approved for, how much you can afford monthly, and if you want amenities.
Learn about the condo association’s regulations and rules before signing anything.
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