The real estate blog.

On Friday we talked about the benefits of living in condos. If that got you interested be sure to read this article about three things every home buyer should know before they purchase a condo unit.

First of all know what your monthly condo fee covers. Does it include any utilities? What are the fees or consequences if it’s late? Some condo owners have lost their homes due to missed payments or ignored fees. Condo fees are included in the debt to income ratio when calculating the mortgage. If the fees are high in comparison to surrounding communities, try to find out why. Are there additional amenities included? Are utilities calculated in?

Secondly, ask for a copy of the condo’s CC&Rs (covenants, conditions and restrictions) before you buy. Are there limitations to satellite

dishes? Can you put up a screen door or a paneled door? Are pets allowed? Can you paint the outside of your unit? Can you put a for sale or for rent sign in your unit? These are the types of things many people forget to or don’t know to investigate.

In the case of an established homeowner’s association, how is it doing financially? A prospective homeowner can get a copy of the financials, but often don’t. A good question to ask to figure out the financial health of the community is how many “special assessments” have been made in the past couple of years. Are there any upcoming assessments. How much were they. An HOA that is forced to levy assessments often has problems financially or is facing large infrastructure improvements that should be a warning sign. New condos don’t have this problem as their HOAs are run by the builder until the majority of units are sold.

As was stated in the previous article, condo living can have great benefits to first time buyers and people who aren’t sure they want a house. However condos can have pitfalls namely in unexpected costs and heavy restrictions from the HOA. Do your research and you’ll be able to make the best choice to suit your lifestyle and pocketbook.