a few red flags to watch for when buying a home
TRANSCRIPT
A Few Red Flags to Watch for When Buying a Home
When you're buying a home, it's not feasible to have an inspection done on every home that you tour, but it's important to know about any potential problems before you make a commitment.
The same principle applies when you're considering a downtown high rise condo.
Homeowner's Association
It's essential to know what the HOA is like before committing to the sale.
Each homeowner's association has different rules and a board that makes decisions regarding homeowner's rights.
One way to learn about the HOA is to get copies of the minutes of recent meetings.
Some HOA's are more flexible than others.
Make sure you understand what improvements or changes you can make to your property that don't conflict with the HOA.
Fees Included in the Price
Most buyers looking for downtown condos to buy calculate what they'll pay for their mortgage but don't always consider additional fees.
When you buy a condo, you have to pay a monthly fee that may include:
Landscaping
Maintenance of common areas
Master insurance
Snow or refuse removal
What most buyers don't know is that the monthly fee isn't the same for every tenant.
If you buy a condo that's assessed at a higher rate than some others in the building, your monthly fee may be higher.
When you're signing the contract for your condo, the fees must be itemized and included in the contract.
The monthly fee may change if the owner of the building plans on making upgrades.
If there's a high delinquency rate, the fees may be raised.
Out of Pocket Maintenance and Repairs
It's customary to take out a homeowner's insurance policy when you buy a downtown high rise condo.
The HOA fee in many cases includes a master insurance plan that covers damage to the building.
Even though some states don't require separate insurance apart from the HOA fees, it's a good idea to have a policy to cover damage to personal items.
Rates of Delinquency
If a substantial number of homeowners in a building are delinquent in paying their HOA fees, it may not be possible to be approved for a mortgage.
The same rule often applies when a large number of residents in a building are renters rather than owners.
Even if you have a superior credit rating, the building may be considered an apartment building and your mortgage could be denied.
Telltale Signs of Damage
When you're inspecting the condo you want to buy, make sure to look for recent paint jobs in one area or peeling ceilings that could indicate water damage.
Check doors and windows to see that they open and shut as they should. Check electrical outlets and fixtures and look for signs of mildew or mold.
It's best to contact a home inspector to check out the condo thoroughly before you sign a contract.
The Appraiser's Role
Your lender will have an appraiser inspect the condo to make sure that it's worth the asking price.
Buyers have the right to look at the appraisal.
Sometimes, the appraiser may make notes of potential issues that the buyer should know about before signing the contract.
If you are looking for a condo to buy in Arizona, We Know Urban Realty will help you find the perfect place.
Their realtors are experts when it comes to urban living.
Will Daly, BrokerWe Know Urban Realty, LLC834 E Claremont Street, No 3Phoenix, AZ 85014(480) 510-8755Email: [email protected]