NORFOLK,
VA, May 08, 2014—If you're currently considering buying a home, you may be
playing with the idea of purchasing a condo. Condominiums are buildings in which
individuals separately own the air space inside the interior walls, floors and
ceilings of their unit, but they jointly own an interest in the common areas
that they share – such as the land, lobby, hallways, swimming pool, and parking
lot.
Most housing condominiums are apartments, although there are mobile home
condominiums as well. Below, Louis Eisenberg, Associate Broker REALTOR ABR SFR
of Prudential Towne Realty outlines some pros and cons of going with a condo,
and highlights things you should know before buying.
Why Buy a Condo?
“Condos are an appealing way to enter the housing market if the cost of a
single-family home is out of your reach,” explains Eisenberg. “Condos are
especially popular among single homebuyers, empty nesters, and first-time buyers
in high-priced housing markets.”
The high price of single-family homes and the influx into the housing market of
more single homebuyers have made condos relatively hot national investments.
They have held their value as an investment despite economic downturns and
problems with some associations.
Eisenberg notes that condominium associations have also worked hard in recent
years to clean up their image. Disputes and lawsuits were once rampant. But now
associations have become savvier about property management and have taken steps
to prevent legal problems and disputes.
Condo vs. Single-Family Home
“Unlike a house, condos offer a lifestyle that is free of yard work and
exterior maintenance and repairs,” says Eisenberg. Many condominium communities
also offer amenities such as exercise rooms, tennis courts, and swimming pools
that you might otherwise be unable to afford if you purchased a single-family
home.
However, there are financial differences between condos and traditional homes.
“In addition to paying a mortgage, each owner is responsible for paying a
monthly fee to the condo association, which is made up of the unit owners,”
explains Eisenberg. The fee covers maintenance, repairs, and building
insurance.
How Do you Choose a Good Condo?
“If you're considering buying a condo, seek ownership in a well-maintained
building, and pay special attention to the financial health of the condo
association,” suggests Eisenberg. Lax maintenance may be a sign of financial
trouble, which could result in higher maintenance fees and problems trying to
resell the property later.
Things to consider:
•
Get a copy of the latest financial statement from the condo association.
• Ask the board of directors – which is elected by the unit owners from among
themselves – if major repairs or improvements are imminent. If so, find out how
much they will cost and whether there is enough money in the reserve to cover
them.
• Check the by-laws, rules and the covenants, codes and restrictions
(CC&Rs). You may find, among other things, that they prohibit or restrict
pets and the renting of units. Some may require that the board have the right
of first refusal on the sale of any unit.
• Learn everything you can about the homeowners association, including legal
disputes and conflicts. Start by reading the minutes of the association
meetings.
• Find out the owner-to-tenant ratio. Because many condominiums are often
purchased as investments, there could be a high percentage of tenants in the
building.
For
more information on purchasing a condo, please contact Louis Eisenberg, Prudential
Towne Realty, leisenberg@prudentialtownerealty.com, 757-572-7244, or www.LouisEisenberg.com
