Purchasing condominiums are much different than single family home purchases. There is more information to evaluate before purchasing condominiums. This blog provides condo purchasing guidance for Saint Augustine, FL buyers.
How Condos Differ From Single Family Real Estate
Condominiums are complexes with two or more units sharing common space. The exterior belong to the association and each owner retains a percentage interest in that. The specific percentage is indicated in the deed for a unit. Condo owners must maintain the interior of their own unit but share the cost of common areas such as roofs. Because of the shared spaces and expenditures, it is important for Saint Augustine buyers to review paperwork before purchasing a unit.
Information You Need to Find Out About
Using Different Loan Programs
Mortgage programs may restrict condo purchases based on specific criteria. For example, FHA requires certain owner occupancy rates, satisfactory reserves, and several other items. Complexes not FHA approved will be options for fewer buyers on the market. Buyers using FHA should determine whether a complex qualifies before preparing an offer.
Rental Percentages
Every complex has a certain number of rental units. Higher owner occupancy percentages are more likely to meet financing requirements. Owner occupants also tend to better care for their units.
Recurring Fees and Assessments
Most condo complexes require monthly fees. The fees are for common expenses. A certain percentage is also put aside into a reserve account to cover significant maintenance. It is important for buyers to ask the amount of the condo fee, what is covered, how much it has increased in the past, and whether it is expected to change. Buyers should also evaluate how much is already saved in reserve. If a association has insufficient funds to cover a costly repair, the amount must be shared among the unit owners. This is referred to as an assessment and can be a lot for owners to cover. Ask about past assessments and any upcoming ones.
Know the Rules
The biggest difference between single family and condo homes has to do with rules. Condo buyers should learn the rules and regulations in advance and decide whether they can accept them. Rules can regulate both common areas and interior spaces.
Condo Purchasing Guidance For Saint Augustine Buyers
There are risks to owning any type of home, but condo ownership has some additional risks that buyers must evaluate. Entirely read through all information and get advice from a real estate attorney. Also think about the resale value of units based on the financial condition of the complex and mortgage qualification. Contact a real estate broker to provide a report on past sales trends in the complex. Accurate Information helps buyers make an informed decision about a condo purchase. This article on condo purchasing guidance for Saint Augustine buyers was written by Marjorie Taylor at VIP Staging. Contact Marjorie at 904-591-9121 or marjorie@marjorietaylor.net.
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