Tips for Buying a Condo — Know Before You Buy!

Buying a condo is a great option for many that are anxious to become homeowners but aren’t ready to buy a home, or for those who want to own property without the responsibility of maintenance and upkeep. However, before you take the dive into buying a condo, there are a few important things to consider.

1. Know Your Fees

It is vital to find out how much you’ll have to pay in fees once you buy the condo. Look at the rates for the condo association fees, and check if you have to pay for trash pickup, snow removal, and the like. Factor all of these into your budget. You don’t want to buy a condo and then realize that you can’t actually afford it once all of the extra fees are included.

2. The Condo Association

It is important to get to know your condo association before buying a condo. The condo association sets up rules to ensure that the condos are a nice place to live, but not everyone has the same idea of what that entails. Do you want to have a home office? The association might have rules against running a business out of your home. Do you have a pet? Certain pets may not be allowed. Make sure that you are joining a condo association that has the same viewpoints as you, or you’ll run into a lot of aggravation.

3. What is in the Reserve?

Condo associations have capital reserves built up so that they can cover emergencies. Make sure that there is enough money in the reserve so that in the case of a catastrophic event they will be able to cover the repairs on multiple condos. You don’t want to get stuck having to pay for maintenance yourself, because it can add up quickly. Also, find out where the money for the reserve is coming from. You may end up having to pay for the repairs on other condos, even if yours was not affected.

4. Who Lives There?

Find out what kinds of people live in the condominiums. Are they couples with young children? College students that stay up late? Make sure that you will be able to fit in with your neighbors and that their lifestyles are similar to yours so you don’t run into any conflicts.

It is also important to find out how many of the condo owners actually live in their condos, or if most of them are rented out. Too many rented out condos might indicate that there is a hidden reason why the owners don’t want to live there.

5. What Does Insurance Cover?

Typically, condo owners are only responsible for a portion of the insurance for their property. Insurance for building exteriors and common facilities are paid for the by the condo association, while it is the duty of the individual to insure the interior of their condo. Check the master policy before buying your condo.

If you would like to learn more about condo insurance, please contact H & K Insurance Agency, Inc. in Watertown, MA. We offer competitive rates from international, national, and regional insurance agencies.