Condo purchases are a bit different from single family home purchases. There are more factors to consider. This article discusses condominium purchasing tips for MA home buyers.
Definition of a Condo
Condominiums are properties with two or more units sharing land and amenities. Exterior areas belong to the association and each owner retains a percentage interest in it. The specific amount is commonly noted in the deed for a unit. Individual owners must maintain the inside of their own unit but share the cost of exterior items such as hallways. Because of the common spaces and expenditures, it is essential for MA buyers to obtain certain information before purchasing a unit.
Questions to Ask
Loan programs can limit condo purchases based on certain criteria. For example, FHA requires certain owner occupancy percentages, monetary reserves, and several other items. Complexes that are not FHA approved will be options for fewer buyers on the market. Buyers intending to use FHA must determine whether a complex is approved before making an offer.
Owner Occupied Units
All developments will have a certain number of units that are rented. If you are purchasing a condo for your primary home, you may prefer ones with higher owner occupancy rates.
Recurring Fees and Reserves
Most condo complexes have monthly fees. The fees help maintain the common areas. A percentage is also put into a reserve to prepare for future repairs. It is helpful for potential buyers to know how much the condo fee is, what is covered, the history of changes, and whether it is expected to increase. Ask about the amount of money already in reserve. If an association is not equipped to cover a expensive repair, all unit owners may be billed for the shortage. This is known as an assessment and can be a significant expense even if spread among the unit owners.
Know the Restrictions
Condo owners must comply with rules that single family owners do not. Condo buyers should find out about the rules and regulations ahead of time and determine whether they are acceptable. Rules may regulate both common amenities and interior spaces.
Condominium Purchasing Tips For MA Home Buyers
There are special considerations when purchasing any type of home, although there may be a few extra things to review when it comes to condos. Be sure to review all of the available information and speak to a real estate attorney for help. Also, think about the resale value of units based on the financial condition of the complex and different financing programs that can be used. Contact a real estate agent for the sales history and other stats. This article on condominium purchasing tips for MA home buyers was shared by Ken Chase at New Wampum Custom Homes. New Wampum may have new construction condos available for purchase in the Wellsley/Newton area. Contact Ken at 617-928-1900 or email@example.com for information.