E90Post
 


Studio RSR
 
BMW 3-Series (E90 E92) Forum > BIMMERPOST Universal Forums > Off-Topic Discussions Board > Buying a condo



Reply
 
Thread Tools Search this Thread
      06-23-2010, 02:17 PM   #1
Freakazoid
Captain
Freakazoid's Avatar
181
Rep
962
Posts

Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

iTrader: (0)

Buying a condo

anyone here know anything about it? Brand freaking new to the idea, and it in general....
I know the ins and outs of the 'house' world, but no idea of condos (including whatever fees, are related to it).

Any tips/suggestions?
Appreciate 0
      06-23-2010, 02:23 PM   #2
CollinsE90
Where my bitches
CollinsE90's Avatar
United_States
739
Rep
1,924
Posts

Drives: Cadillac coupe deville
Join Date: Mar 2009
Location: street corner checking profits

iTrader: (0)

buy one near the gulf in a couple months for a beach house, you will probably be able to pick one up cheaper do to BP's spill
__________________
Appreciate 0
      06-23-2010, 02:30 PM   #3
Freakazoid
Captain
Freakazoid's Avatar
181
Rep
962
Posts

Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

iTrader: (0)

Quote:
Originally Posted by CollinsE90 View Post
buy one near the gulf in a couple months for a beach house, you will probably be able to pick one up cheaper do to BP's spill
Appreciate 0
      06-23-2010, 02:30 PM   #4
Feyd
Major
Feyd's Avatar
344
Rep
1,288
Posts

Drives: a DEEZZULL
Join Date: Aug 2007
Location: Chicago, IL

iTrader: (2)

First and foremost, find a good real estate agent.... Choose someone who has been doing this for a long time. Their experience will help you navigate things with much greater ease than someone who is just starting out. Remember, they are there to help you and it is in their best interest that you go through with a deal, so don't be afraid to ask "stupid questions", or to divulge information like you maximum limit for purchase prices, etc. They aren't like some car salesman where you want to play it close to the chest. They are essentially your representative on the purchase, so they need to know everything.

There are also lots of resources available online to help with the condo purchase, but take all of what is said on these with a grain of salt because laws will vary from state-
to-state.

On that note BofA has a really great (very thorough) virtual walk through on the home buying process. I'd recommend you going through that (there is no sales pitch at the end and it is free) so you at least are familiar with your terminology when you start to move forward.

You'll need to get pre-approved from someplace. You can either go directly to a bank, or find a reputable mortgage broker to work through. This is a pretty painless process and can typically be done inside of a day. It's essentially the same kind of credit check that you go through when you buy a new car. This will be important to have as some places won't even schedule a showing unless you are pre-approved for a purchase at (or below) the amount the condo is listed for.


Also, to get a "conventional" loan for a condo, some states will require a minimum of 10% down for a non-FHA approved condo development. Some developments are already FHA approved, and some are not. There are a few programs that will allow you to do a 5% down loan on a Condo, but there are special requirements for how old the development is/how many owners there are vs. renters, etc. Again your real estate agent can help you navigate this type of stuff and only show you places that are FHA approved (if that is the type of loan you are after).



It can be really overwhelming at first, but really really concentrate on finding a good agent. Most agents will be connected with all of the right people (attorneys/mortgage brokers/ins. agents, etc) and can really make the whole process much less scary..

Good luck!
Appreciate 0
      06-23-2010, 02:31 PM   #5
BTM
Banned
United_States
479
Rep
10,309
Posts

Drives: A///MERICAN!!!
Join Date: Mar 2010
Location: A///MERICA!!!

iTrader: (11)

Garage List
Quote:
Originally Posted by Freakazoid View Post
anyone here know anything about it? Brand freaking new to the idea, and it in general....
I know the ins and outs of the 'house' world, but no idea of condos (including whatever fees, are related to it).

Any tips/suggestions?
I was under the impression it wasn't too much different than buying a house w/ HOA fees...but I am unexperienced in house/condo buying. Make sure the parking is deeded
Appreciate 0
      06-23-2010, 03:14 PM   #6
Freakazoid
Captain
Freakazoid's Avatar
181
Rep
962
Posts

Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

iTrader: (0)

Quote:
Originally Posted by BTM View Post
I was under the impression it wasn't too much different than buying a house w/ HOA fees...but I am unexperienced in house/condo buying. Make sure the parking is deeded

see that's what I'm wondering as well... even some of the more silly things like are condos automatically furnished when you buy them? Or are they like houses with stripped down?
Appreciate 0
      06-23-2010, 03:17 PM   #7
Freakazoid
Captain
Freakazoid's Avatar
181
Rep
962
Posts

Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

iTrader: (0)

Quote:
Originally Posted by Feyd View Post
First and foremost, find a good real estate agent.... Choose someone who has been doing this for a long time. Their experience will help you navigate things with much greater ease than someone who is just starting out. Remember, they are there to help you and it is in their best interest that you go through with a deal, so don't be afraid to ask "stupid questions", or to divulge information like you maximum limit for purchase prices, etc. They aren't like some car salesman where you want to play it close to the chest. They are essentially your representative on the purchase, so they need to know everything.

There are also lots of resources available online to help with the condo purchase, but take all of what is said on these with a grain of salt because laws will vary from state-
to-state.

On that note BofA has a really great (very thorough) virtual walk through on the home buying process. I'd recommend you going through that (there is no sales pitch at the end and it is free) so you at least are familiar with your terminology when you start to move forward.

You'll need to get pre-approved from someplace. You can either go directly to a bank, or find a reputable mortgage broker to work through. This is a pretty painless process and can typically be done inside of a day. It's essentially the same kind of credit check that you go through when you buy a new car. This will be important to have as some places won't even schedule a showing unless you are pre-approved for a purchase at (or below) the amount the condo is listed for.


Also, to get a "conventional" loan for a condo, some states will require a minimum of 10% down for a non-FHA approved condo development. Some developments are already FHA approved, and some are not. There are a few programs that will allow you to do a 5% down loan on a Condo, but there are special requirements for how old the development is/how many owners there are vs. renters, etc. Again your real estate agent can help you navigate this type of stuff and only show you places that are FHA approved (if that is the type of loan you are after).



It can be really overwhelming at first, but really really concentrate on finding a good agent. Most agents will be connected with all of the right people (attorneys/mortgage brokers/ins. agents, etc) and can really make the whole process much less scary..

Good luck!

Feyd, greatly appreciate the insight... as you seem to focus completely around the agent perspective... I'll be blunt. Given the costs of condos, is the real estate agent really THAT necessary? Can't I essentially team up with some of the 'part time' agents I know that are into the process?

The reason why I ask, is I would assume I would be paying the commission, would reach the tens of thousands extremely quickly.

Also appreciate the heads up about the down payment/deposit, I was assuming more on this given the nature of a condo. Surprised it's the same amount as a casual house purchase!
Appreciate 0
      06-23-2010, 03:23 PM   #8
OC Guy
General
OC Guy's Avatar
United_States
530
Rep
18,123
Posts

Drives: AW 335D E90
Join Date: Oct 2006
Location: Irvine/Aliso Viejo, CA

iTrader: (9)

Garage List
2007 335i  [0.00]
Check out the city-data forums.
__________________

Current: 2010 Alpine White 335D LCI l 19" BBS LMs l KW V2 Coilovers l BMW Performance Grilles l MSport Front/Rear l Karbonwerke Trunk l F1 Pinnacle Tint 35% Former: E92 Space Grey 335i Latest pics
Appreciate 0
      06-23-2010, 03:51 PM   #9
kyleb350
Brigadier General
kyleb350's Avatar
United_States
422
Rep
4,709
Posts

Drives: '21 X3MC
Join Date: Jun 2008
Location: Milwaukee

iTrader: (6)

Make sure to compare association fees with other similar condo associations and consider what they include (maintenence, free water, heat, cable, etc.)

This is a great time to buy, especially if you are looking for your first place.
Appreciate 0
      06-23-2010, 04:47 PM   #10
Feyd
Major
Feyd's Avatar
344
Rep
1,288
Posts

Drives: a DEEZZULL
Join Date: Aug 2007
Location: Chicago, IL

iTrader: (2)

I've never heard of the buyer paying for agent (not saying that doesn't happen), but typically the seller will pay their agent's fees as well as your agents fees.

Percentages vary, but what will usually happen is the seller will sign an agreement that they will pay a fixed rate commission (lets say 6% for sake of argument) and then they'll split that percentage between the listing agent and the buyers agent. Sometimes it's 50/50 sometimes it's 60/40, etc.

If you are getting into a larger (newer) development like a high-rise, etc. where there is lots of inventory then you might be able to get by with ONLY a real estate attorney, but again since it shouldn't cost you anything to hire a licensed broker you might as well get one to help you out.

I know here in Chicago there are buildings that basically have 100% dedicated agents who essentially guide people through buying units ONLY in those buildings. The developers spin it as it allows you (as the buyer) to get the "best deal" and in a way it should help your bottom line, but in the end it's just a way for the builder to make a bit more money... they'll agree to a 4% sales fee rather than a typical 6-7% fee, etc.


Condos will typically be just like a house when you take possession. No furniture, sometimes no appliances, etc. All of that will be divulged when you are checking places out + looking at MLS listings, etc.

BTM also makes a good point about parking. Sometimes it's included... sometimes it's not. Here in downtown Chicago you will typically take out a separate loan for a parking spot since it's essentially an "owned piece of real estate". Not sure where you are looking and what the parking situation is, but make sure you ask the questions...

Association fees are crappy... but you really can't do much to get around them. Sometimes they are worth it and sometimes they just aren't. But some new buildings will have pools/gyms, etc. that make it easier to swallow since you'll be able to cancel your gym memberships, etc.

One other thing that you need to check on is transfer taxes. Most cities either (1) don't have them or (2) they are paid by the seller. Unfortunately for me here in Chicago, they are paid for by the buyer @ $7.50 per thousand. So that adds up to 3-4k of additional expenses that wasn't planned on when we bought our place.

Again, you really should talk to a bank/agent sooner than later in this process. They will take you through step by step and let you know what to expect for all of your closing costs, etc.
Appreciate 0
      06-23-2010, 04:55 PM   #11
ABQ325i
Private First Class
ABQ325i's Avatar
United_States
14
Rep
158
Posts

Drives: 08 E60 535i + 06 E90 330i
Join Date: Apr 2010
Location: Albuquerque

iTrader: (4)

Garage List
2008 535i  [0.00]
2006 330i  [0.00]
Just for the record I am a Realtor and this is pretty much what I tell everyone.

#1 Rule - DO NOT SIGN ANYTHING with a Realtor unless it is an offer. If a Realtor tells you that you need to sign an agreement before they show you properties, tell them where to go. Do not get tied down to one Realtor, once they have you they might not be as motivated to work.

#2 If you purchase a property which is listed on the local MLS (Multiple Listing Service) then you will not be paying a commission, the seller will be. Realtor.com will also give you the listings.

#3 Get pre-approved. Find out ahead of time what you can get approved for then go from there.

#4 Don't fall in love with any property, there are thousands of properties on the market and I guarantee you will find another one you like as much further down the road.

#5 Don't be afraid to make an offer below asking price.

#6 Short Sales and Foreclosures are a pain in the ass, never think you are going to get a steal because most of the time they don't work out.

#7 There is nothing wrong with going with a new Realtor as long as they have a good QB (Qualifying Broker) these will usually bend over backwards to help you out and will sometimes go a little further than the more established Realtors (I know I did)

#8 NEVER NEVER NEVER Sign a purchase agreement/offer unless you are 100% happy and have every single question answered no matter how trivial.
Appreciate 0
      06-23-2010, 05:02 PM   #12
Freakazoid
Captain
Freakazoid's Avatar
181
Rep
962
Posts

Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

iTrader: (0)

Quote:
Originally Posted by kyleb350 View Post
Make sure to compare association fees with other similar condo associations and consider what they include (maintenence, free water, heat, cable, etc.)

This is a great time to buy, especially if you are looking for your first place.
is this the best terminology to use that incorporates EVERYTHING? (all fees). I'm trying to figure out how to word this such that.... i don't sound like a dumbass, and i don't get screwed
Appreciate 0
      06-23-2010, 05:38 PM   #13
kaykay
Lieutenant Colonel
kaykay's Avatar
United_States
87
Rep
1,769
Posts

Drives: 2011 E92 M3 ZCP
Join Date: Apr 2010
Location: SoCal

iTrader: (0)

Garage List
Always check the HOA fees, some condo's might be "competitivly" priced and then have $1,500 / month HOA fees.

A few places I was looking at on Ocean avenue in Santa Monica had HOA fees of $2k on a $1.2 million condo... That was pretty ridiculous. Not to mention the property taxes you have to pay to the city and the HOA loves special assessments where they can charge you even more HOA fees.

Buying property is a big deal, make sure you thoroughly understand, study, ask questions and know what you're doing.
__________________
'12 CLS550 Palladium Silver - loaded
'11 E92 M3 ZCP - SG/B-EXT/CF, M-DCT, loaded
'11 E93 328i, BSM over Saddle Brown, sport, loaded
'08 550i M-Sport, Carbon Black (Gone but not forgotten), '06 W211 E55 AMG (Gone, miss this animal),'01 E39 540i Sport
Appreciate 0
      06-23-2010, 08:05 PM   #14
Feyd
Major
Feyd's Avatar
344
Rep
1,288
Posts

Drives: a DEEZZULL
Join Date: Aug 2007
Location: Chicago, IL

iTrader: (2)

Same here on the waterfront in Chicago. You can get a nice 2bd/2bth condo for about $450,000 but the HOA's are $1500-$2000/mo.

Then you read the listing and it says. "Assessments Include"

Water
Doorman
Trash Removal

Assuming you are putting down a decent down payment that means that your mortgage payment could literally be less then your monthly assessments.


Or I need to quit my job and become a doorman, because those dudes must be banking it!!!



LOL.
Appreciate 0
      06-23-2010, 08:14 PM   #15
khaye1
Colonel
khaye1's Avatar
Philippines
145
Rep
2,809
Posts

Drives: 18 AW F80
Join Date: Feb 2009
Location: San Diego

iTrader: (8)

want a real tip? don't get a condo! I'm stuck in one, and it's gonna take awhile until I make my investment back...Condo's don't appreciate as fast as single family homes do. They also require HOA fees along with some rules and regulations. You also outgrow it faster than you would think.
__________________
Appreciate 0
      06-23-2010, 09:59 PM   #16
lib
Major
lib's Avatar
141
Rep
1,401
Posts

Drives: <This space for rent>
Join Date: Apr 2008
Location: ATX

iTrader: (0)

ABQ325i and Feyd have some good points.

I bought a new condo downtown ~2 months ago so I'm fairly familiar with the process. A few tips:

1) Find out if the building is "warrantable." The warrantable status dictates if you can obtain conventional financing from a major bank. If a building is not warrantable then it will be more difficult to pickup a mortgage on that property.

There are a certain set of restrictions that dictate if a building is warrantable and they include but are not limited to:
- Percentage of units sold.
- Percentage of units owned by residents as opposed to rented out
- Percentage of units owned by a single person
- Whether or not the HOA is in the control of the residents or another party such as the developer
- Amount of reserve funds the HOA has on hand
- Any lawsuits the HOA is involved in (When you stick a few hundred units in a building they're always in a lawsuit of some sort)

Your realtor should be able to answer that question but the status can change over time. The building I picked was warrantable when I signed the contract and then entered into a lawsuit against a neighboring condo and suddenly became non-warrantable. As a result I had to stop everything 2 days before closing and switch lenders. That pushed my closing from taking 30 days to taking nearly 3 months :\


2) Buying a condo with less than 15-20% down can be a complete pain in the ass in most parts of the country at the moment and completely impossible in others. The real estate crisis ran a lot of PMI companies out of buisness and as of January/Feburary nearly all of the remaining companies offered no products for condo purchases (yes, even when you're well into the "excellent" range on your credit score). At the time I believe there was a total of 2 or 3 who would touch a condo.

That being said, you can definitely still go into a condo with less than 20% down but you should expect to run into tighter DTI restrictions that you would need for a home and expect to put at least 10%-15% down.


3) Find out if the building has had any "special assessments" in the past several years. If the HOA has their head up their asses you could easily be hit with unexpected bills for hundreds to thousands of dollars out of the blue.

If there have been several special assessments in the past year or two you shouldn't be surprised if you start seeing them after you close.


4) Find out if there are any major lawsuits against the building developer and the HOA.
- I know of one building a few blocks from me that had great deals on units but in the process of researching the building I found out it's because the developer screwed the whole thing up - elevators never work, building leaks, etc.
- Condos in another building near me (800 room Hilton hotel they built) has all sorts of lawsuits going on because they put a catering kitchen for the hotel above some units in the middle of the building and water is constantly leaking into the units below.


5) Take a look at your parking spot. Just because it has a parking garage doesn't mean every parking spot is a good one. The first unit I set my sights on was great (city views, etc etc) but it had this goofy parking spot in some attached parking that was exposed to the weather. While some people don't mind that it was a deal breaker for me.


6) Some of the best deals are developer units that have been lingering around since the building has been built (assuming the building is less than a few years old). They're often not listed on MLS and you'll need a realtor who is plugged into the local condo market in order to find them.


7) Given how crazy the condo lending rules are at the moment I'd recommend a mortgage broker. Mine saved me an unbelievable amount of time and effort. Yes, he ends up making money through fees/points/whatever but it was money well spent in my case.

I originally went under contract just after the condo lending rules changed in January - my mortgage broker was the only in the process who had a clue about what changed, what needed to be done and how we could go about doing it.
When the building became non-warrantable due to a lawsuit with a neighboring condo (over a dumpster of all things) he was the only one who knew which local banks might still deal with the property and he was able to talk them into terms I was happy with.

If it wasn't for my mortgage broker I wouldn't have bought this place. The guy was amazing. If you want his name IM me and I'll gladly refer you.


Edit:
8) While all of those tips make it sound like a nightmare, it's honestly well worth it if you find a place you love.

Those three months of my life were an unbelievable pain in the ass and killed all of the initial joy that comes with buying a place. Now that I've settled in I'm glad I went through it and would gladly do it all over again.

Quote:
Originally Posted by khaye1 View Post
want a real tip? don't get a condo! I'm stuck in one, and it's gonna take awhile until I make my investment back...Condo's don't appreciate as fast as single family homes do. They also require HOA fees along with some rules and regulations. You also outgrow it faster than you would think.
That depends entirely on where you are, what you bought, when you bought it and how much you paid for it.

Last edited by lib; 06-23-2010 at 10:31 PM..
Appreciate 0
      06-23-2010, 10:51 PM   #17
BMW2006
Second Lieutenant
United_States
12
Rep
217
Posts

Drives: 2007 335i Montego Coupe
Join Date: Aug 2006
Location: Columbus, ohio

iTrader: (0)

What all these guys said + I recommend picking up "the idiot's guide to buying and selling a home". Granted your looking at a condo but most every principle remains the same. Plus it will answer some questions you might be too embarrassed to ask. It won't cover everything and will not replace a good Realtor by any means, but as others have mentioned it can be a complicated process and there are going to be things even the best agents will miss.

Condo fees are a pain in the ass. Be prepared to pay for other peoples' mistakes (condo association assessments and fees). I would recommend even trying to meet some of the members or getting feedback from current residents if you can figure out a way to pull it off. Many of these people, who are successful in their own career fields, are nearly incompetent when tasked with running the association. Just because you are a successful LAWYER, doesn't also mean you are also a good FINANCIAL PLANNER or ACCOUNTANT. They are also responsible for hiring the property management company, some of those are good, others are downright horrendous. Do your research. Remember that they are essentially spending YOUR MONEY, make sure they are able to do so responsibly and also make sure you will have a voice in your community. In my case the entire community is just paying off a horrible loan they (or the previous association members) took out in the mid 90's to make improvements to the development. They've been paying off this loan for so long many other areas have fallen apart and they have had some problems keeping up and keeping residents happy.

They also have the ability to make assessments against your condo if there are deficiencies or things they don't like about them. I had to replace a bay window that was out of code (and hidden from me at closing) at nearly $2000 from one of these assesments. They will also fine you for not complying with these ordinances. So not only do they spend YOUR MONEY, they also spend YOUR MONEY for you, or extort it through fines. You can be somewhat limited in your choices to take action against them if this is the case. Your options are (as far as I know)

1. compliance
2. appeals or applications for extension if you can't afford what they want right away.
3. Putting your condo fees in escrow (which doesn't mean you don't pay them eventually, you just put them aside until a particular situation is remedied). It's generally regarded as a pretty bad idea and your association needs to be very very wrong for it to hold any legal ground and I think there really aren't that many issues where you are entitled to do so.

Just some other things to consider along with what others have said.


-BMW2006
Appreciate 0
      06-23-2010, 11:54 PM   #18
Schm
Colonel
Schm's Avatar
United_States
164
Rep
2,731
Posts

Drives: e90 330i
Join Date: Jan 2009
Location: Missouri

iTrader: (3)

Screw "ask a Realtor"

"Ask e90post" gets way better responses!
__________________
2006 E90 330i.
Appreciate 0
      06-24-2010, 12:40 AM   #19
El Cheapo Loco
douchebaggo
186
Rep
972
Posts

Drives: stick
Join Date: Oct 2009
Location: CA

iTrader: (1)

With all the association fees and assessments plus the hassle of HOA rules and regulations, condos are a PITA. Houses generally give you more privacy and freedom and will appreciate in value much faster than condos.

I've owned both and would recommend you get a house if you can swing it.
Appreciate 0
      06-24-2010, 08:36 AM   #20
Freakazoid
Captain
Freakazoid's Avatar
181
Rep
962
Posts

Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

iTrader: (0)

Quote:
Originally Posted by Schm View Post
Screw "ask a Realtor"

"Ask e90post" gets way better responses!
haha better and more relevant.... the realtor I had with my house purchasing was useless....
Appreciate 0
      06-24-2010, 08:37 AM   #21
Freakazoid
Captain
Freakazoid's Avatar
181
Rep
962
Posts

Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

iTrader: (0)

Quote:
Originally Posted by elcheapoloco View Post
With all the association fees and assessments plus the hassle of HOA rules and regulations, condos are a PITA. Houses generally give you more privacy and freedom and will appreciate in value much faster than condos.

I've owned both and would recommend you get a house if you can swing it.
well the only reason i'm contemplating a condo is it would be a rental property (almost entirely). and from what I can grasp condos are much easier in that regard.
Appreciate 0
      06-24-2010, 08:41 AM   #22
Freakazoid
Captain
Freakazoid's Avatar
181
Rep
962
Posts

Drives: Saturn Redline
Join Date: Dec 2009
Location: Pittsburgh

iTrader: (0)

Quote:
Originally Posted by lib View Post
ABQ325i and Feyd have some good points.

I bought a new condo downtown ~2 months ago so I'm fairly familiar with the process. A few tips:

1) Find out if the building is "warrantable." The warrantable status dictates if you can obtain conventional financing from a major bank. If a building is not warrantable then it will be more difficult to pickup a mortgage on that property.

There are a certain set of restrictions that dictate if a building is warrantable and they include but are not limited to:
- Percentage of units sold.
- Percentage of units owned by residents as opposed to rented out
- Percentage of units owned by a single person
- Whether or not the HOA is in the control of the residents or another party such as the developer
- Amount of reserve funds the HOA has on hand
- Any lawsuits the HOA is involved in (When you stick a few hundred units in a building they're always in a lawsuit of some sort)

Your realtor should be able to answer that question but the status can change over time. The building I picked was warrantable when I signed the contract and then entered into a lawsuit against a neighboring condo and suddenly became non-warrantable. As a result I had to stop everything 2 days before closing and switch lenders. That pushed my closing from taking 30 days to taking nearly 3 months :\


2) Buying a condo with less than 15-20% down can be a complete pain in the ass in most parts of the country at the moment and completely impossible in others. The real estate crisis ran a lot of PMI companies out of buisness and as of January/Feburary nearly all of the remaining companies offered no products for condo purchases (yes, even when you're well into the "excellent" range on your credit score). At the time I believe there was a total of 2 or 3 who would touch a condo.

That being said, you can definitely still go into a condo with less than 20% down but you should expect to run into tighter DTI restrictions that you would need for a home and expect to put at least 10%-15% down.


3) Find out if the building has had any "special assessments" in the past several years. If the HOA has their head up their asses you could easily be hit with unexpected bills for hundreds to thousands of dollars out of the blue.

If there have been several special assessments in the past year or two you shouldn't be surprised if you start seeing them after you close.


4) Find out if there are any major lawsuits against the building developer and the HOA.
- I know of one building a few blocks from me that had great deals on units but in the process of researching the building I found out it's because the developer screwed the whole thing up - elevators never work, building leaks, etc.
- Condos in another building near me (800 room Hilton hotel they built) has all sorts of lawsuits going on because they put a catering kitchen for the hotel above some units in the middle of the building and water is constantly leaking into the units below.


5) Take a look at your parking spot. Just because it has a parking garage doesn't mean every parking spot is a good one. The first unit I set my sights on was great (city views, etc etc) but it had this goofy parking spot in some attached parking that was exposed to the weather. While some people don't mind that it was a deal breaker for me.


6) Some of the best deals are developer units that have been lingering around since the building has been built (assuming the building is less than a few years old). They're often not listed on MLS and you'll need a realtor who is plugged into the local condo market in order to find them.


7) Given how crazy the condo lending rules are at the moment I'd recommend a mortgage broker. Mine saved me an unbelievable amount of time and effort. Yes, he ends up making money through fees/points/whatever but it was money well spent in my case.

I originally went under contract just after the condo lending rules changed in January - my mortgage broker was the only in the process who had a clue about what changed, what needed to be done and how we could go about doing it.
When the building became non-warrantable due to a lawsuit with a neighboring condo (over a dumpster of all things) he was the only one who knew which local banks might still deal with the property and he was able to talk them into terms I was happy with.

If it wasn't for my mortgage broker I wouldn't have bought this place. The guy was amazing. If you want his name IM me and I'll gladly refer you.


Edit:
8) While all of those tips make it sound like a nightmare, it's honestly well worth it if you find a place you love.

Those three months of my life were an unbelievable pain in the ass and killed all of the initial joy that comes with buying a place. Now that I've settled in I'm glad I went through it and would gladly do it all over again.

That depends entirely on where you are, what you bought, when you bought it and how much you paid for it.


wow lib, that's 100% exactly what I was looking for... thank you! That's stuff I know a realtor would either forget to mention at some point, or conveniently forget... That's some good reading, and some good learning, thanks again!
Appreciate 0
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 06:57 PM.




e90post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST