by Nora Spero

Created on: March 13, 2009

How to buy a Condo

You've made the decision to go for condo living, and you've even found the place you'd love to call home. Do a little preparatory investigation before you tie things up (one advantage of a slow Real Estate market is that you generally don't have to worry about competition). Below is a list of things to be aware of in a condo purchase.

Pricing. Have your Realtor show you comparable (similar in size and amenities) recently sold (one to three months back) condos preferably in the same complex, at least in the general vicinity geographically. If you don't have a Realtor, you can go to the town/city assessor's office and look up the records yourself. Some localities have this available online, others do not and you'll have to physically go to the town or city hall. This should give you a good idea of value. Now you can make and negotiate your best deal knowledgeably. You can always make the offer contingent upon your reviewing and accepting the Condo Rules and Regulations, the Financial Statement and Meeting minutes; see below.

Verify what is included in the monthly fee get it in writing.

Due diligence. Check with the city or town hall zoning or planning boards to find out if there are any issues current or pending that could affect value or living experience such as a major highway/airport/tramway expansion close by.

Ask for the Condo association's financial statement, and board meeting minutes if appropriate. Get your favorite accountant or someone with business experience to look at the financial data if it's not something you can understand. You want to be certain there is enough money in the association to cover maintenance, insurance and repairs. What kind of ownership is in place does everyone vote, for example? Looking the meeting minutes over may seem boring, but this is where you will find out if there are problems within the community that you won't know about otherwise, until it's too late!

Meet the neighbors! Go round on a weekend and speak to people in the common areas, the clubhouse, park or laundry. Ask them how they like living there and if there are any issues they wish they'd known about before they moved! (Good way to make some friends, too!)

Once you have reviewed the information you've gathered and it is acceptable, your next step will be a home inspection. Get a certified or licensed inspector as required by your state or province. Be present when the inspection is done. Walk through the building or around the grounds and be observant do you like what you see, hear and smell?

Finally, be prepared that you may have to pass muster yourself! Many condominiums require potential owners to submit to credit and character checks, ask first and be ready with references, etc.
Condo living can be a great experience, but go into it with your eyes wide open so you won't be surprised by something that, had you known about it, would have changed your mind.

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