condos

7 Mistakes To Avoid When Buying A Condo

Buying a condominium is a great investment and also a means for people to become homeowners at a reduced cost – especially when people cannot afford to buy a house. So, are you looking forward to buying a condo?It is truly quite exciting and fun to be acquiring a new

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Issue 324 : Jan 2025

condos

7 Mistakes To Avoid When Buying A Condo

Buying a condominium is a great investment and also a means for people to become homeowners at a reduced cost – especially when people cannot afford to buy a house. So, are you looking forward to buying a condo?It is truly quite exciting and fun to be acquiring a new property, especially if you’re looking at homes for sale in Cranston. However, in order to avoid any mistake that will cost you your property or leave you in a state of financial catastrophe, take a look at these 7 mistakes to avoid when buying a condo. Not Getting Pre-Approved Getting approval is one of the most important factors to look out for when buying a condo. Some buyers can get so engrossed in the activities of buying a condo, and leave out booking an appointment with a mortgage broker to obtain a pre-approval. Not getting approval will not avail you with the exact information on what you can afford and what you cannot. Not Obtaining Buyer’s Representation Buying a condo is quite an expensive investment that needs the involvement of an experienced attorney in the area. A realtor is only there to give their fiduciary duties to the seller and not to you. So, why rely on just working with the realtor? Get an attorney to help represent your interest. Location When buying a condo, go for one with a location avails you with amenities and basic social facilities. It won’t be nice to be filled with regrets about not opting for other locations at the time of purchase. The aesthetics of a building is only secondary when choosing the perfect condo. Carry out a survey of the location and know of any long-term plans for the area. A city centre location for a condo is quite lucrative if you are looking to get a return on your investment. Say for example, Los Angeles has a lucrative real estate market. You can choose from luxury LA condos for sale. Santa Monica is a popular location in Los Angeles you can consider buying a condo. You can visit the websites of Santa Monica realtors to find so many condo units. Not Checking If the Building is Under Litigation A controversial condo can be a nightmare to buy or live in. with owners of condos suing one another, one has to be careful of the property to buy. However, a lawsuit doesn’t outrightly mean the property is useless, but there are a few matters to be taken seriously to avoid issues in the long run. As such, always involve an attorney before buying a property. This is the best way to decide whether to go ahead with making a purchase. Failure To Check The Conditions, Covenants, and Restrictions (CCRs) CCRs are the rules and regulations that the residentials living in the community abide by. These rules are created by the Home Owners Association (HOA) and outline the appropriate norms and standards for people in the community. Always read and fully understand the CCRs of any community, and know if you will be able to cope there, before buying your condo, to avoid future issues. Not Checking For The Adequacy Of Funds For Reserve Study A reserve for condos is set aside for the sole aim of preparing cost related to building expenses, replacement, and repair of parts of the building, for a particular time. From studies of the physical state of a building, and a thorough financial analysis, a reserve is set aside to make sure the project is well funded when the need for repair arises. Check if the HOA dues can cover for at least 50% of what will be needed for the project. A reserve not being available or well-funded will give you a big increment on the dues from the HOA. Buying for Beauty It is common practice for a property that is put up for sale to get a face beat before inviting buyers. Buyers can easily get carried away with the look of the property and how sparkly and bright it is, even when their criteria for a home is not met. Guess what? That is a very huge mistake to make. Sometimes, sellers can change the look of an old building by using cheap materials, just to make quick money. This is like a temporal cover up that wears off with time. Buyers should carefully look at what they are buying.

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