Whether for you’re looking to invest or simply find a new home, the process of buying a condominium is much like buying a house. But there are a few issues
that are unique to condo ownership that require some special consideration... For one thing, not all buildings and homeowners associations are created equal.
When you purchase a condo, you are “buying-in” to a community of people with its own mini government. You’ll need to make sure not only that the unit and complex suit you, but that the association suits you as well. To help you figure that out, there’s an extra step in the purchase process requiring delivery of a Resale Certificate to you, prepared by the condo association management. The Resale Certificate includes financial statements, bylaws, rules and regulations, as well as minutes from recent board or association meetings. Buyers generally have 5 days to review this information, so make sure you read it carefully before completing the sale to ensure that the rules and regulations are ones you can abide by, and that the association is well-governed and fiscally responsible.
Many complexes have restrictions on the number of units that can be rented at any one time… this may limit you if you’re planning to purchase the condo as an investment property, or if a change in your personal circumstances might require you to rent it out — or even take a roommate — in the future. Pet policies, too, will vary dramatically from complex to complex, so read this section carefully if you’ve got a cat, dog, or even a lizard with whom you’d like to share your life.
Next, virtually all condos have some form of monthly homeowner dues collected by the association for utilities and maintenance of common areas. It’s important to factor in an additional amount per month into your financing calculations -- exactly how much depends on the specific complex, but your agent can help you with a placeholder number according to the market you're shopping. A Special Assessment is a temporary increase in the monthly dues that are occasionally levied to cover big-ticket repairs that were not fully budgeted by the association. Read the meeting minutes in the Resale Certificate to determine if a Special Assessment is being discussed for the future.
How long will you own it? With the surge in new condo construction boosting supply, it may take longer to recoup your investment in a condo than it would in a house. Talk to your real estate agent about current trends and recent market activity in and around the complex before you buy.
Condo living has many advantages: you can save money; save time not spent on yardwork or other maintenance; and perhaps buy in to a neighborhood or a view you might otherwise not be able to afford.
Call me today for help finding your new condo!
