Tip #1: Know your why.
Think about the reason you’re looking for condo units. If it’s to get closer to your workplace, but you don’t see yourself working there for five or more years, wouldn’t renting be a wiser idea? But if you have the means and are willing to make it a passive source of income, it could be a good investment choice.
Tip #2: Research on financing options.
Many other fees come with buying a condo unit, and you may not instantly realize them (e.g., parking fee, unit maintenance and repair, utilities, realty tax, and so on). Determine the best financial option for you to help you pay for the property and not burden you further. Also, make sure that everything is clear before you sign the contract.
Tip #3: Hire a real estate agent who has experience with condos.
Selling a condo unit is different from selling a vacant lot or family home. Likewise, a condo’s purchase contract isn’t the same for other types of residences. This is why you must work with an agent with solid experience with condos, for they would know things you may overlook and guide you in reviewing critical legal documents.
Tip #4: Review the association rules.
Association rules and regulations are among the first things condo buyers should ask. This involves details about unit modifications, restrictions, garbage disposals, use of amenities and features guidelines, and other house rules. If you have a pet, you’ll want to ask about the building’s pet rules.
Note that you will immediately become a part of the property’s association; hence, you will be required to pay the monthly fee for building maintenance and other necessary costs.
Tip #5: Know the resale potential and lifespan of the property.
Condominium buildings have a lifespan of fifty years. When hunting, ask the agent about the property’s lifespan to help you determine how resaleable your future unit will be in five or more years. Another factor to consider is the location of the property. This is one of the major contributing factors to its resale value.
Tip #6: Review the legal documents.
Since this will be your first time purchasing a condo, it’s crucial that you examine the legal documents and ensure that the transaction is properly documented. You will come across five legal documents when purchasing a condo:
- Intent to Purchase Real Estate or Letter of Intent
- Contract to Sell
- Deed of Absolute Sell
- Condominium Certificate of title
- Tax Declaration