Thinking about buying a condo? Great! It can certainly be an exciting process, and even more so when you know what you're doing.
But when you don't know what you're doing, the condo-buying
experience can be downright scary and costly. No need to fear though,
because we're going to cover the top seven things you should do when
buying a condo.
1. Get pre-qualified for a mortgage.
When you're
pre-qualified by a mortgage lender, you'll have more leverage with
sellers. Pre-qualification means a lender has informally reviewed your
financial situation and found you capable of taking on a loan in a
specified amount. It doesn't guarantee that you'll get the loan, but it
shows sellers you're serious about buying.
2. Choose the right location.
"Location, location,
location" is one of the most commonly used expressions in the real
estate industry – but with very good reason. People often choose condos
over traditional homes with a certain lifestyle in mind. So be sure
your condo's location can accommodate that lifestyle. Experiment. Test
out the drive from the potential condo to your work, school, shopping,
etc.
3. Conduct thorough research.
Condo life usually comes
with a number of bylaws, association rules and other declarations. Be
sure to get this documentation up front to avoid any surprises later
on. You're making a big financial investment, so you'll need all the
facts about what's permitted and what's prohibited. While you're at it,
get to know the developer too. Find out their history and expertise.
Talk to a few of the residents (when applicable) to get their input.
4. Ask about building services.
Condos often have
"built-in" services that residential homes do not. This can be part of
their overall appeal. But don't assume your prospective condo comes
with a certain service – find out for sure. Is there a door man? Is
there a maintenance man or building engineer? If so, what hours will
they be available?
5. Learn about pre-construction pricing.
Developers will
sometimes offer significant price breaks in the early stages of
development. They do this to attract buyers during the pre-construction
phase. As construction begins on the new development, demand usually
goes up. And we all know what happens to prices when demand rises! So
if you take advantage of pre-construction pricing, you could save a lot
of money in the long haul.
6. Remain flexible.
If you're buying during the
pre-construction phase, give yourself plenty of flexibility with the
closing date. Construction delays are not uncommon, so it's important
to consider this when locking in your interest rate and setting a
closing date.
7. Take advantage of tax deductions.
Speak with your
accountant to find out what portion of your assessment is
tax-deductible. Other expenses that add value to your condo may also be
tax-deductible. Get an understanding of these tax implications before
making your purchase.
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Brandon Cornett writes on behalf of
MetroSceneTV. If you're condo shopping in Chicago or the surrounding
area, visit MetroSceneTV.com for detailed information about Chicago condos and other luxury properties. Online at: http://www.metroscenetv.com
