Purchasing condominiums is much different from purchasing single families. There is more information to consider. This article discusses condo purchasing advice for PA first time buyers.
Condo – Defined
Condos are properties with two or more units sharing land and other common areas. The exterior belong to the association and each unit has a percentage interest. The exact percentage is typically based on the size of individual units and the total units in a complex. Condo owners are responsible for maintenance of the interior of their particular unit but share the expense of exterior items such as common amenities. Because of the shared spaces and expenditures, it is essential for PA buyers to review certain information prior to purchasing condos.
Facts You Need to Find Out About
Mortgage Options
Certain criteria can apply to certain mortgage programs. For example, FHA requires certain owner occupancy percentages, satisfactory reserves, and several other items. Complexes that are not FHA approved may have a limited buyer pool. Buyers intending to use FHA must identify whether a complex qualifies prior to spending too much effort viewing units there.
Owner Occupied Units
Most complexes have a certain number of rental units. High owner occupancy percentages are more likely to fulfill loan requirements. High rental rates also tend to be less desirable.
Recurring Fees and Reserves
Most condominium complexes implement monthly fees. The fees cover expenses for common areas. A amount is also put aside into a reserve for planned expenses. It is critical for buyers to know the amount of the condo fee, what is covered, how much it has increased in the past, and whether it is expected to increase. Buyers should also ask about the current reserve. If a association does not have enough to pay for a significant repair, the cost is divided among the unit owners. This is known as an assessment and may be significant for owners to bear.
Rules and Restrictions
The biggest difference between single family and condo homes relates to rules. Condo buyers should obtain the rules and regulations before purchasing and decide whether they can live with them. Rules may regulate both common spaces and interior spaces.
Condo Purchasing Advice For PA First Time Buyers
There are conditions to owning any kind of listing, but condo ownership has a few added components that buyers must be aware of. Carefully assess all facts and get help from a real estate attorney for help. Also think about the resale value of units based on the financial condition of the complex and home loan qualification. Contact a real estate professional to provide the sales history in the complex. All of this helps buyers make an educated decision about a condo purchase. This article on condo purchasing advice for PA first time buyers was prepared by Pedro Teixeira at FIT Credit. Contact Pedro at 215-613-8130 or pteixeira.fit@gmail.com for information on particular complexes in PA or regarding other real estate matters.