So You Wanna Buy a Condo?

Condominiums are great for first time buyers and investors, but what should you know before making your offer?

A condo is part of a planned unit development (PUD) that consists usually of attached residences. These can take several forms, from high rise residential complexes, to low impact, attached single or two story homes. They also consist of common areas that may include greenscapes, swimming pool(s), play areas/tot lots, sports facilities (Such as tennis or basketball courts) and even laundry facilities.

While condo owners may give up the perceived “personal space” of a single family residence surrounded by a front and back yard, they are still building equity and value in their property.

So why would you buy a condo, and what should you look for?

Price

Usually condominiums are priced lower than their single family counterparts. For the most part, it’s due to the fact that there’s less (or no) land that has to be included in the price.

That being said, they usually come with a Homeowner’s Association Fee (HOA) that’s added to your monthly mortgage payment.

Lower Maintenance Than Single Family Home

Condominium exteriors and landscape maintenance are handled through your HOA fees. Your responsibilities for maintenance, decor, upkeep and upgrades are usually limited to the interiors. For those “on the go” or upwardly mobile professionals, a condo can better help you manage your time.

FHA Buyers Beware!

If you are obtaining a loan through the Federal Housing Administration (FHA), make sure your agent checks with the condo’s HOA to insure they will allow FHA loans. There are certain rules that guide just how many FHA owners are allowed within a condominium complex. Contact me with your questions about FHA loans and condos. 

I am here to help!

I am a licensed real estate professional with experience helping home buyers and sellers in the Santa Clarita Valley achieve their real estate goals. Contact me for a no obligation consultation.

 

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