So you’ve decided to finally move out of that dusty old apartment, stop paying someone else’s mortgage, and invest in a condo of your own. Congratulations! Buying a condo can certainly be an amazing step forward in your life or great investment opportunity!
But while you should look forward to the purchasing process with optimism, it’s important to keep in mind that the process of finding the perfect condo to purchase is very different than buying a home or renting an apartment. Don’t worry – we’re not here to scare you, but rather to help! There are a number of things you need to make sure to look out for when buying a condo. We've listed out buying
Typically, a big fear of anyone looking to purchase property is that it’s part of an association such as a homeowners’
Insurance covering condos works a little bit different than homeowners’ insurance when you’re purchasing a residence or renters insurance when you rent an apartment. Condo associations typically have a master policy that covers the entire condo property itself, and it’s very important to look out for yourself and review the coverages on this policy. You’ll want to make sure to check what the policy covers and what it may not (personal belongings, flood damage etc.), and it may require you to take out an additional policy of your own, resulting in an additional expense. Don’t be afraid to work with your insurance agent on this as well!
This is probably the biggest tip that we can offer because it’s something that’s very easily overlooked, but can make the biggest difference in your investment in the long run. Each condo association has a reserve fund, which is the amount of money they have set aside to make repairs to the shared property. If the reserve fund seems low, take this as a potential red flag! A low reserve fund means that if the property were to receive severe damage (such as from a storm), you could find yourself having to help contribute to the repairs and an unexpected big bill.
Buying a condo can be a confusing, yet incredibly exciting endeavor, and if you need any more advice or have any questions, know that the professionals at Sunset Realty Services are ready to assist you at any time! So don’t hesitate to call us with any questions or concerns you may have today.