To Condo or Not To Condo. That is the Question!
July 29th, 2009
When working with first time home buyers, the question of whether or not they should explore purchasing a condo inevitably comes up. The subject often arises after the buyer looks at a few homes and realizes they’ll need a lawnmower to cut that grass, perhaps do some exterior painting, pay for their water, trash and sewer and eventually get down on all fours to weed the flower beds.
If these tasks seem overwhelming, purchasing a condo is a good alternative. For what is typically a monthly or quarterly condo association fee, you can often get someone else to mow, weed, pick up your trash and perhaps even pay for your water and sewer service. Often too these fees include exterior liability insurance for the buildings and common grounds of the condominium, as well as exterior termite treatments for those of us in the muggy south.
But along with all these possibilities of someone else handling the dirty work around your new condo, comes the probability that there will still be some things you’ll need to manage yourself. Before you buy, make sure you do your homework with your Realtor® to understand who is responsible for what in and around your new potential home.
First, understand in clear detail what the condo fee does and does not cover because it varies from complex to complex. Secondly, see if a portion of your monthly fee is being saved for larger, one-time expenses such as replacing the roofs, repairing exterior walls and driveways. Ask if there are any special assessments for these larger projects currently being collected for or may be assessed in the next twelve months. Usually by reviewing a recent set of financial records for the condo association, which you should request prior to buying a condo, you can easily tell if the association is properly saving for the future or has little financial cushion to rely upon should a major repair be needed. Finally, take the time to read the condo documents that govern the condo association since they lay out the responsibilities of the management and members of the group.
As always, if you have any questions call me at 985-707-5035 or email me a pbennett@latterblum.com. Let’s get you moving! Anywhere in the country, I can get you there.
Posted by:
Patricia Bennett
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