A condominium is an incredible real estate asset. Whether someone is purchasing one as their forever home, an investment opportunity, or a chance to downsize, condos present certain benefits that single-family houses do not offer. Additionally, condos are a great opportunity for first-time buyers to transition from renting to owning property, often times creating offering more affordability than buying a house. It’s important to do ample research before beginning the search, particularly because as a first-time buyer you won’t likely have much practical experience in the real estate market. Here are the top things to consider before making the exciting purchase.
1. Review the HOA
Before making an offer on a condo, it's important to carefully review the HOA documents. These documents include the bylaws, covenants, and restrictions that govern the association and the property. It's critical to understand the rules and regulations that come with owning a condo, including any restrictions on renting out the unit or making modifications to the property. Reviewing these documents can also give you insight into the financial health of the association, any upcoming special assessments or repairs, and any ongoing legal disputes.
2. Consider the location
When buying a condo, you should put plenty of thought into the location. Look for a condo that is in a desirable neighborhood and close to amenities such as public transportation, shopping, and restaurants. Consider the safety of the area as well and the potential for noise and other disturbances. Not only will these elements shape your day-to-day life, they’ll also affect the resale value of your condo, should you choose to sell it in the future. As a first-time buyer, you may not know much about the real estate markets in particular neighborhoods, but a savvy agent should be able to advise you on where up-and-coming areas are in order to make a smart purchase.
3. Review the condo fees and reserve fund
Condo fees cover the cost of maintaining the building and shared amenities and can vary widely from one property to another. Make sure to review the fees carefully and check that they fit within your budget. Additionally, review the reserve fund, which is used to cover unexpected expenses or repairs. A healthy reserve fund is important to ensure that the association can cover the cost of any unexpected repairs without having to impose special assessments on owners.
Buying your first home is a big deal and should be approached with enthusiasm and pride! And although it’s necessary to do your diligence during the process, with a trusted advisor at your side it is not as overwhelming as it may initially seem.