Planning to Buy a Condo? Here’s What to Ask!

Are you looking forward to buy an oceanfront condo? Well, you have reasons to be intrigued about living in an apartment enjoying the sunset view. It’s a pretty god way to say goodbye to yard work and exterior maintenance.

For many first-time buyers condos offer an attractive path to homeownership at a significantly lower price than single-family home. well, buying a condo is pretty different from buying a home. If you find advertisement like Oceanfront Condos for Sale in St. Petersburg Florida – you need to keep in mind, you are buying into community with rules, financial obligation and management structure. 

Well, its crucial to do necessary homework. This blog aims to guide as your road map and make an informed decision about condo ownership. Here is some crucial financial question you should ask before you sign on the dotted line:

What are the HOA fees? 

No one wants to be surprised by the monthly HOA fees after purchasing the property. It can range from a few hundred to over thousands dollars. Ideally, HOA fees pay for maintenance of the common areas, building insurance, amenities and other building maintenance. Some condo building involves utilities like water or heat in the monthly fee. 

What is the Reserve Fund? 

If you are preferring condo over Ocean View Homes for Sale in St Petersburg Florida, consider the reserve fund as the condo building’s saving account food major repairs and replacement. The reserve find can protect you from special assessment in future.

You should ask them whether the fund is adequate to cover long-term maintenance and replacement. The Real Estate agent can help to determine if the reserve fund is fine for building’s age and condition. 

What is the Insurance Coverage? 

The community insurance coverage may affect your savings as well. The master policy essentially covers the building structure and common areas however, you will need a condo insurance policy to protect the personal property. You should also ask for flood and earthquake insurance.

Is it a Warrantable Condo? 

Well, the technical-sounding question should directly affect the ability to get conventional mortgage. It also makes financing easier and include limits on how many units a single entity can own and also the ensures the stability of the condo association. 

What’s the Owner Vs. Renter Ratio? 

Well, the balance between owner and renter in your building matters a lot. A high percentage of owner-occupied unit often means better property management and stronger sense of community. It is better to prefer at least 50% owner occupancy.

Is there Any Pending Legal Issue? 

Legal trouble may impact your quality of life and ability to get a mortgage as an owner. You should ask: 

•              Current and Pending Lawsuit 
•              Past Legal Issues and Resolution 
•              Any Dispute with Developers 

Red flag includes multiple lawsuit, ongoing construction defects and frequent disputes.

Wrapping Up 

Buying a condo is indeed an exciting step especially if you are first-time buyer. While these questions may seem like a lot to ask this will help you to understand what condo ownership mean for you. 

For more information, please get in touch with us.