Buying a Condo
Buying a New Condo
Brand new condos appeal to
most buyers. However, buyers of brand-new condos should
know that most new buildings have construction defects.
Builders / developers correct construction problems.
However, defects aren't discovered until several years
later. When buying a condo unit that is several years old
is usually more predictable than buying a brand-new unit.
After a few years, the "defective problems" have been
resolved. Of course, older condo complexes have problems
also, which are usually related to repairs / replacements
and perhaps increasing monthly fees.
When buying a condo that is several years old, be sure to
ask several current resident / owners, "What do you like
least and best about living here?" Ask about
"soundproofing" upstairs, downstairs or neighbors?" To
minimize sound, it's better to buy a condo on the first
floor or the top floor.
Whether buying a brand-new or a resale condo, when you
become seriously interested in a particular unit ask the
seller or the sales agent for a copy of the condo CC&Rs
(covenants, conditions, and restrictions), by-laws and
rules. Check especially for restrictions on pets and
rentals. You might disagree, but I recommend condos that
prohibit or at least restrict pet size, and that make
rentals very difficult and expensive for owners who want
to rent their units.
About Generation Y Home
Buyers
Generation Y home buyers are
fearless shoppers who are changing the way moderately
priced homes are sold, say observers of this tech-savvy
generation.
“They already have their minds made up before they get in
the car,” says Justin Juarez, broker-owner of Metro
Brokers Liberty Home Group in Denver.
The 65.3 million members of Generation Y — people born
between 1979 and 1994 — are always looking for the best
deal, says Angela Burdick, owner of Angela Burdick Real
Estate.
“Location is very important to this group,” Burdick says.
“They like light rail and public transportation and
walking where they want to be. They value their
recreational time, and they don't want to be home mowing
lawns.”
Gen-Y also doesn't shy away from spaces as small as 500
square feet. “They're really into organization and
multifunction of furniture,” Burdick observes. “You see a
lot of Murphy beds, and they like multifunctional rooms.”
Source: Denver Post, Margeret Jackson
Real Estate Investing
- Common Real
Estate Mistakes By Buyers
-- Bought properties to flip at top-of-market prices.
Thinking the bubble headlines were wrong or didn't apply
to them, newbie real estate investors wanted to become
week-end millionaires.
-- Utilized Interest-Only Mortgages. Many home-hungry
buyers discovered the only way you can pay top-of-market
prices is to get an interest-only mortgage. With declining
prices and no monthly principal payments, these homebuyers
could fuel a foreclosure market in 2006. Fixed-rate
mortgages will become the majority in 2006 as mortgage
underwriters and educated consumers are reunited.
-- Overlooked Resale Characteristics. New construction was
the rage in 2005, everyone wanted to select finishes,
floor coverings and kitchen cabinets. Buyers should beware
when this year’s home buyers become sellers, buyers could
bypass their resale that was new in 2005 for the chance to
design their own new home. Look to future before signing
on the line.
-- Skipped Performing a Home Inspection. Before some
markets shifted away from sellers markets, many homebuyers
waived their right to a property inspection. Never, skip
or waive the right to a inspection, the benefits far out
weigh the costs and could save you numerous headaches and
expenses later. Hire a professional, not Uncle Bert.
-- Misinterpreted developers’ giveaways. Two years free
condominium assessments, stainless appliances and plasma
TVs were thrown in to induce buyers to write contracts to
purchase. What many buyers thought were a freebie were
actually a signal that markets were softening and that
projects were slow to sell from increased competition and
a lack of buyers. Incentives are a Band-Aid for a
languishing development.
-- Were represented by the same agent representing the
sellers. Thinking they might get a better deal or out of
ignorance used the listing agent to represent them as
well. Most states require written acceptance of this
situation known as dual-agency by both parties under agent
license laws. All buyers should be represented by an agent
who has a fiduciary responsibility to them. Hire an
Exclusive Buyers Agent.
-- Didn't Read Homeowners Association Documents. Getting
rid of Fido because you didn't know you were moving into a
no-dog building is an example why every buyer should
request and read home owner association declarations,
rules and regulations, association meeting minutes and
budgets. Ask if there are any special assessments
(typically for capital improvements; new roofs, windows,
elevators) or planned ones. Special assessments can run
into the thousands.
-- Neglected to request rates of state, county or local
transfer taxes paid by buyers at closing. Some buyers
learn too late that they might need large amounts of extra
money to pay transfer taxes in the state, county and city
where they are purchasing property. Transfer taxes which
typically can't be financed can kill a transaction.
Inquire when you start your search how much transfer taxes
are and who pays them.
