When working with new buyers looking for investment or second home properties, my first question is always, what is your price range, then shall I include condos? The answer is generally, no condos please. So my next question is why not? The answer is surprising in most cases...Buyers think condos are just too expensive with the association fee. Actually in most cases they are not. Let me break it down for you. If you buy a single family home or condo, there will be maintenance. The difference is who is going to pay for it, who is going to handle it.
If you own a condo, there will be exterior painting, roofing, decking, etc. that will need to be addressed. That is generally covered through your association fee. Insurance too, all covered through your association fee. The only insurance you will need to cover in addition to the association fee is contents policy for the interior of your condo. Your Home Owners Association will handle the repairs. Your association fees are paid generally quarterly. Taxes yearly, and generally escrowed by your mortgage company.
For a single family home, you have the same maintenance issues, and insurance and taxes. But you will need to put the money aside to cover those issues as they arise. There is also the matter of having someone look after the property. A condo is covered by the HOA(Home Owners Association) and the single family home if not in an association does not have the watchful eye of the management company.
For many buyers a condo is a great option, but for many if the association fee is not the downside it may be the fact that you are sharing walls, floors, ceilings...less privacy. Some buyers only want a single family home, as that is what they are used to, and the condo just does not appeal to them.
A few other downsides to condos are the financing aspect. Condos do require more of a down payment, generally a 20-25% down payment as opposed to sometimes as little as 10% down, and not all financial institutions finance condos. Something to discuss with your lender prior to going out to view property.
Sometimes with this additional information, the buyer is willing to look at the condo, as now it makes more sense. My advice is don't count them out until you look at the bottom line, it just may surprise you.
Author:Michele Clark Phone: 252-305-2478 Dated: March 29th 2017 Views: 617 About Michele: I have had the privilege of selling Outer Banks property for over 21 years. Whether you are a first ...
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Since 1996 I have been proudly selling real estate on the Outer Banks of North Carolina. I can think of no other career than to help people realize their dream of home ownership on these beautiful barrier islands. I represent buyers and sellers, whether you are a first time buyer, seasoned investor or somewhere in between. You can count on myself and my team to be with you every step of the way. Honesty and Integrity are the core values of our company.