So you’re thinking about buying a condo, but before you sign on the dotted line, take time to ask these questions. Doing your due diligence now, can save you from headaches later. A Condominium, or ‘condo’ for short, is an individually owned apartment within a larger building.
Condos have grown in popularity over the past few decades. Their reemergence as an affordable housing option for young professionals was largely driven by their secondary market value as an investment property that also happens to be cheaper than renting an apartment in most cities.
What’s included in the monthly condo fee?
Almost all condos collect an annual fee to cover the costs of maintaining the common areas and shared features. The monthly condo fee is usually collected by a building management company. The typical condo fee covers amenities like landscaping, snow removal, pest control, and security.
Some condos also collect fees for items like shuttle service and electric car plug-ins. The monthly condo fee also typically covers the cost of utilities. In some cases, however, utilities are covered by an individual electric meter.
It’s important to find out exactly what is covered in the condo fee before you buy an apartment in a building. Some condos charge a lower monthly fee but tack on higher utility costs.
What are the rules and regulations?
Find out what the rules and regulations are for the building you’re thinking of buying into. It’s common for condos to have a set of rules and regulations that govern everything from noise and trash disposal to pets and parking decisions.
You should also find out if there are any tenant association or board of directors meetings that you’ll be expected to attend.
What are the building’s current repair and maintenance issues?
Find out what the building’s current repair and maintenance issues are. If the building’s roof was replaced three years ago, for example, a new roof is probably not an imminent repair need.
That said, you should still ask your realtor or building manager if there are any upcoming large-scale repairs that the building needs to deal with.
Are there any upcoming renovations scheduled?
Find out if there are any upcoming renovations scheduled for the building. If you’re buying a condo and the building’s elevator control system is nearing the end of its life, for example, you could be looking at a down elevator for a few weeks while it’s replaced.
You might even be able to see what’s coming in the near future for your HVAC and other related systems.
Can you see what’s coming in the near future for your HVAC and other related systems?
Some condos are now making maintenance information available online. Others collect it in an online database accessible to owners and realtors.
You can also call the building manager and ask for an overview of the current situation and what’s coming in the near future.
Is there a new roof on the horizon?
New roofs are expensive and are often the biggest repair expense associated with a building. If the roof of the building you’re looking at buying into is anywhere near the end of its lifespan, find out when the roof will be replaced.
That way, you can plan for any renovations that may be required as a result of the roof replacement, like removing wall and floor tiles that have been covered by tarps while the roof is replaced.
Who is currently responsible for paying for which repairs and who can you contact if something breaks?
Ask your realtor or building manager who is currently responsible for paying for which repairs. Some buildings will share the repair costs equally, while others may have a sliding scale depending on the size of each apartment.
It’s also a good idea to find out who you should contact if something breaks.
When do leasehold improvements become common area expenses?
Some condos tuck leasehold improvements (LI) into their monthly condo fee. Others collect one-time payments from owners to pay for things like a new roof or elevator repair.
Still, others collect a monthly LI fee in addition to the monthly condo fee. It’s important to know when leasehold improvements become common area expenses and when they become the responsibility of the condo association.
What do you expect from your condo community?
Before you buy into a condo, you should have a clear idea of what you expect from your condo community.
Is this a quiet, family-friendly building?
Is it pet-friendly?
It’s important to know what you want from your condo community before you buy in.
What do you expect from your condo neighbors?
The same goes for your condo neighbors. You can’t force people to comply with your expectations, but you can be aware of the types of people who may be living in your building.
What do you expect from your condo association?
You may want to join the association or find out if you’re required to join the association and attend the board of directors meetings. You’ll want to find out how the board makes decisions, how often they meet, and what types of issues come before them.
You’ll also want to find out if you have to pay dues to be a part of the association.
What additional research do you need to do?
As you’re speaking with realtors about buying a condo, it’s a good idea to ask them to send you links to nearby condos and buildings. Once you have a list of buildings in your price range, you should take some time to do a little research on each one.
It’s a good idea to look for articles on the buildings and nearby condos. You might also want to search for reviews left by current condo owners.
What questions do you still have?
Buying a condo is an important decision. Make sure you’ve asked all the questions you need to ask before you make that decision. You don’t want to wake up one day and regret your decision to buy. If you’re ready to buy a condo, Real Estate Internet Marketing can help. they specialize in condo sales, and they can help you with everything from getting an accurate assessment of your current condo value to finding the perfect condo within your budget.
