When a condo that you love comes up for sale, you often have to act quickly. The best condo communities have no shortage of interested buyers, and if you don't make an offer within a day or two, you might miss out. That does not mean, however, that you should be rash in your decision. The real estate you're buying is going to be your home for the foreseeable future, after all! Here are some things a wise buyer should look into before making a formal offer on a condo.
What is the real market value of the condo?
When the real estate market is booming and there is a shortage of condos available, it is not uncommon for buyers to over-pay. All it takes is two interested buyers to bid against each other, and suddenly someone is paying $30,000 more than the listing price. This then comes back to haunt buyers years later when they go to sell and find out their condo is not really worth what they paid. To make sure you do not overpay, do your research on other condo units in the community. If all of the other units are sold in the last year sold for between $150,000 and $170,000, then you should aim to be paying about the same for yours. If the price gets bid up higher than that, walk away and find a different condo.
What are the HOA terms and fees?
HOAs are very involved in condo communities as they maintain the exteriors of the homes and all community amenities. A high HOA fee can make a seemingly affordable condo less budget-friendly, and an overly restrictive HOA can make it tough to live within the rules. Read through the HOA bylaws and fee schedule to make sure you're comfortable with them before you make an offer.
Will you use the amenities?
When you live in a condo community, you are paying for the use of whatever community amenities are on-site. If they are not amenities you will use, then you're basically paying for nothing. Get a complete list of community amenities before you make an offer on a condo. If they make you excited to move in, then that's the condo for you. If you think you'll never use them, then it's time to call your real estate agent back and look at some other condo communities.
If you look into the topics above before putting an offer in on a condo, you'll make a wiser purchase in the end.
If you're looking for condos for sale, contact a real estate agent.