A few days ago I wrote about condo living in which I discussed the positive points of condo living.
Here I would like to point out a few "cons"-iderations before purchasing that Florida condo. Your real estate agent will probably have a few more as well!
- A major consideration these days is the number of vacant units in the complex. Lenders are especially concerned before handing over a loan. This should be one of the top concerns of any prospective buyers as well!
- How many units are up for sale at the present time? How many of these units are bank owned/foreclosure properties? How many of these units are short sales?
- How many of the units are rented and what percentage may be rented should you decide to move and keep your unit.
- What are the monthly assessment fees? When was the last time the assessments were changed?
- What about the condo association's financial status? When were the books audited and what is the financial stability of the association? How much is the association reserves? What is the current budget?
- What about the covenants, restrictions, bylaws?
As a condo owner you have ownership rights in the common areas. Likewise, as a condo owner, you have responsibilities when it comes to maintaining the entire complex.
The bottom line - every owner is on the hook for the association responsibilities and liabilities so know where you are headed!
Depending on the location checking with a real estate attorney may just be the right choice for you.
Gary L. Waters PLLC, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.
Whether your interest lies in a 55+ community such as Heritage Isle, a golf course community such as Baytree National Golf Links or water front, give me a call!
Read my blog Florida Homes for Sale, Moving to Brevard County, Florida, and Brevard County Florida Real Estate Information.
All good points Gary....I live in a condo and luckily it is very well run and the association does a good job keeping on top of the management company....out of all our units we now have one who is 4 months behind on their fees and that is being addressed but it still can be a concern when you hear this. For me the big one is the financial status....
Great article! Obviosly you have seen condos get denied financing for many of the reasons that you ask your clients to consider. Condos are tough these days. There is no shortgage of inventory, and lending guidelines are tight, and not loosening. Weather you are financing or not, it is important to ask the questions, get the answers, and decide if that association is strong enough to continue to operate without dues going through the roof.
joeknowsmortgages.com
Dennis - Thanks. The financial one is a biggy.
Joe - I have had some listed where the mortage did not happen! Thanks.
I'm living in my condo while my house is being rebuilt. I've gotten so addicted to the swimming pool, hot tub, and tennis court, as well as the very central location, that I'm considering never moving back to the house!
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