Condo purchases is a bit different from buying single families. There are more factors to assess. This article provides condominium buying guidance for NH home buyers.
Definition of a Condo
Condominiums are properties with more than one unit with shared common space such as land and hallways. Shared components belong to the association and each unit has a percentage interest. The exact share is normally based on the unit size and number of units. Condo owners are financiallyresponsible for maintenance of the interior of their own unit but share the cost of exterior items such as siding. Because of the shared spaces and expenditures, it is essential for NH buyers to obtain certain information before purchasing a unit.
Paperwork to Consider
Not all mortgage programs can be used for all condo complexes. For instance, FHA requires certain owner occupancy rates, monetary reserves, and several other items. Condo complexes that do not meet these requirements will be more difficult to sell. Buyers using FHA must determine whether a complex is approved before spending too much effort evaluating units there.
Number of Rental Units
Most complexes have a certain number of rental units. Higher owner occupancy percentages are better from a financing standpoint. High rental rates also tend to be less desirable.
Condo Fees and Assessments
Most condominium complexes implement monthly fees. The fees are for maintenance of common areas. A certain portion is also set aside into a reserve account to prepare for upcoming repairs. It is helpful for buyers to know the amount of the condo fee, what is covered, how much it has increased in the past, and expected changes in the future. Buyers should also ask about the current reserve. If a complex does not have enough to cover a costly repair, all unit owners may be billed for the shortage. This is known as an assessment and may be significant for owners to cover.
Know the Rules
Condo owners must abide by rules that single family owners do not. It is necessary to know the rules and regulations ahead of time and decide whether they can accept them. Rules may apply to both common amenities and interior spaces.
Condominium Buying Guidance For NH Home Buyers
There are conditions to owning any kind of real estate, but condo ownership has some additional risks that buyers must understand. Entirely read through all facts and consult a real estate attorney if necessary. Also think about the resale value of units based on the finances of the complex and mortgage qualification. Ask a real estate broker to provide historical information on sales in the complex. Accurate information helps buyers make an informed decision about a condo purchase. This article on condominium buying guidance for NH home buyers was offered by Donna DuFour at Accurate Title. Contact Donna at 800-639-4405 or firstname.lastname@example.org for facts on particular complexes in NH or regarding other real estate matters.