Before Purchasing a Homes for Sale, Check Out the Condominiums on the Market

When considering to purchase homes for sale, we generally think first of single-family homes. There are many advantages, however, to condominiums that single-family homes for sale cannot give you.

According to the National Association of Realtors, condominiums are most popular for first-time homes for sale buyers, especially single women. Next, come retirees and empty nesters, who do not wish to have all the physical upkeep required by single-family homes for sale. Thus, condominiums make up an increasing share of the output of the top homebuilders across the nation, even with the decrease in homes for sale since the bubble deflated.

In addition to new condominiums being built, many apartment buildings, hotels office buildings, and even warehouses that have been vacant or partially filled are being converted into condominiums. These condominium homes for sale take less than a year to convert, with upgrades to the exterior and common areas. They add amenities to the interior; and in some, they add a pool, spa, gym and/or clubhouse to attract the upscale homes for sale buyers.

The best deals in condominium homes for sale are those in the process of being converted or built. You usually can purchase during construction/renovation at a 10-15 percent discount. Look carefully at the purchase contract, however, if the condominium is being converted from an apartment building. Ensure you will not be required to allow current renters to stay for a specified length of time.

A condominium homes for sale has many benefits. Like a single-family home, they appreciate in value and have the same tax advantages. Unlike a single-family homes for sale, your homeowner association and maintenance fees covers all major upkeep costs of common areas, landscaping and so on. Sometimes, several other amenities and benefits are covered, as well.

Converted Condominiums

Before buying a homes for sale in a converted building, find out how old the building is and what updates they made during the conversion. Older buildings generally have more frequent and higher cost repairs. Ask if the homeowners association has enough money in reserve to cover major costs, such as roof replacement. If not, will the owners have to meet the costs. How old are the appliances, especially the furnace, hot water heater, and air conditioning? If the appliances are not new, consider purchasing maintenance and repair contracts to save large expenses later.

Established Condominiums

Before buying a homes for sale in an established condominium complex, ask to see all available documents, including minutes of the association for the past few years. Ensure your potential homes for sale will not see a major increase in maintenance or association fees, taxes, and so on. Also, look for any noticeable disputes that residents have had with the association. You do not want to purchase a condo that will give you a lot of headaches. As with converted buildings, consider purchasing maintenance and repair contracts If the appliances are not new.

Buying Any Condominium

Always check the contract and association rules for the following:

• What is the consequence of late payment of association or maintenance fees? Possible actions are lien against your condominium, foreclosure, and court action.

• What are the restrictions? Do they restrict age of residents; pets; who and how many people may live in your homes for sale; no renting or subleasing; number of guests at one time in your unit, home business; and so on?

• Make sure you understand the definitions of the restrictions (such as, what constitutes excessive noise).

• What are the consequences of the different restrictions?

• How and when can you access the pool, spa, gym or clubhouse?

• Does the association have to approve all buyers? Do they conduct a criminal background check before approval? A condominium can offer you more safety than a single-family homes for sale in that the association can ensure its residents do not have criminal backgrounds.

Once you purchase your condominium homes for sale, insure the inside against liability and damage. Consider the extra cost for flood (if even a remote possibility exists — think Hurricane Katrina) and wind insurance (especially for units above ground level).