3 Things To Ask About Before Making An Offer On A Condo
If you are thinking about buying a condo to move to, and if you have never lived in a condo, there are several things you should know about the differences between condos and single-family homes. It's important to understand the differences before you move, and here are three good questions you will need to ask if you want to buy a condo that you probably would not need to ask if you were buying a single-family home:
How Much Is the HOA Fee?
Condos are located within communities that have management companies. These management companies typically call themselves homeowner's associations (HOAs), and the HOAs are responsible for caring for the communities in many different ways. For example, the HOA handles the maintenance work for the exterior of the homes and the lawn work needed.
In return, people who purchase condos are required to pay monthly dues to the HOA managing the community. Before you purchase a condo, you should find out how much this fee is. HOA fees vary, depending on the location, value, and types of amenities, but it is not uncommon for the fee to be at least $200 per month. In some communities, it can be a lot more than this even.
How Much Money Is in the Reserve Account?
A second thing to ask about is the reserve account the HOA has. Every HOA should have a reserve account, which is a bank account designed to pay for long-term expenses of the community. If an HOA does not have a reserve account, beware. Without properly planning and saving for long-term expenses, an HOA might not have the funds to provide all the services and maintenance the community needs.
What Are the CC&Rs?
The other thing to ask about is the CC&Rs, which stands for Covenants, Conditions, and Restrictions. These are rules that govern the HOA and the homes within the HOA. If you buy a condo, you will be required to follow these rules. In many communities, the CC&Rs are very fair and standard, but some communities are very particular about what they let the homeowners do in the community. Always read through these before you buy a condo, just so that you know what they are.
Buying a condo is a smart move for many reasons, but it is always important to find the answers to these questions before you make an offer. To find condos for sale in your city, contact a local real estate agent.
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