Did you know that an estimated 27 percent of people in the United States of America live in condos or HOA communities? Condos offer a number of benefits that you won’t get to enjoy if you choose to purchase a single-family home or rent an apartment. They’re growing in popularity since they offer some top-notch amenities while offering you the chance to own an appreciating asset.
There are a number of condo buyer errors that you need to avoid if you want to get the best deal possible on that dream condo that you’ve discovered. The good news is that you’re in the right place to learn about these mistakes and get the best deal on your new home possible.
Keep reading this article to learn all about eight great tips for buying your new condo today!
1. Continuing to Rent
Many people that are interested in purchasing a condo are choosing to rent an apartment while they shop. When you choose to buy a condo you’re choosing to trade your monthly rent expense for a monthly mortgage. It’s quite possible that your mortgage payments will become more expensive than your rent, but you should avoid continuing to rent solely because it’s cheaper.
The fact of the matter is that your rent expense will continue to rise. Your mortgage payments should stay the same no matter what happens with inflation as long as you get a fixed-rate mortgage. It’s a much better alternative to renting an apartment, and it allows you to build equity.
2. Waiting for Prices to Fall
Another big condo buyer error to avoid is sitting back and waiting in hope that the prices will start to fall for new and used condominiums. The housing market is coming down a bit, but the tradeoff is that interest rates are starting to climb again. There will never be a perfect time to purchase a new condo for you and your family.
3. Waiting for Lower Interest Rates
Interest rates are starting to climb as the financial sector looks for ways to bring inflation down. If you plan on waiting to purchase a condo until the interest rates come down a bit you’re going to be waiting a while and spending even more money on your monthly rent.
You can avoid making condo buyer errors when it comes to interest rates by considering the option of refinancing the loan. There is nothing that can stop you from shopping for these condos no matter what the interest rates are set at. Refinancing will allow you to get a more favorable interest rate in the future, which will bring down your monthly payments.
4. Waiting for a Steal
Finding a condo that checks all of your boxes and offers all of the common condo amenities is hard to pass up. Some people make the costly mistake of passing up on a condo because they hope that a cheaper option might come around. It’s imperative that you take the time to start comparing condo costs to find the best option that fits all of your needs.
Purchasing real estate is a game that you need to play to win if you want to get the condo of your dreams. Other buyers appreciate the value in the condo that you’re looking at, and if you’re not careful, you might find that they’ve taken it out from underneath you while you were waiting for other options.
5. Not Getting a Condo Pre-Purchase Inspection
The inspection of your condo is another big thing that you shouldn’t skip over. Yes, it’s another expense, and yes, it’s a bit inconvenient. It’s also a huge safety net that could keep you from losing tens of thousands of dollars on a condo that requires some serious repairs.
Your condo pre-purchase inspection is designed to protect you since an expert will come in and find anything that could pose a safety risk or a money pit. You’ll save money over the long haul and you’ll know what to look for when purchasing property in the future.
6. Ignoring Your Gut
People say all of the time that they knew that something or someone was perfect for them at first sight. You need to trust your gut and your instincts when you’re searching for a condo. If you’re touring a unit that is for sale and it feels like home, don’t be afraid to move forward with the purchase.
Your gut instinct is more often right than wrong. This works in the other direction as well. If you have a bad feeling about a place then you should avoid purchasing it.
7. Shopping Without a Realtor
Your realtor is here to help you find the condos that fit your budget and your needs the most. Trying to tackle the process of finding and buying a new condo without your realtor is a big ask, especially if you’re balancing it with work and your family. The best approach to take when exploring your options for condos is to find a reputable realtor near you.
8. Falling in Love With Amenities
A big perk of buying a condo as opposed to a house is the fact that you gain access to the common condo amenities. It’s easy to fall in love with the flashy clubhouse and pool or the brand-new fitness center. In reality, you won’t use these amenities as often as you think you will.
It’s better to focus on the condo itself since that is where you’ll spend most of your time. Think of the amenities as a cherry on top at your new, comfortable condo.
Avoid These Costly Condo Buyer Errors Today
Purchasing property is confusing and stressful, especially when there are large amounts of money on the line, which makes it easy to fall into the common condo buyer errors. It’s best to focus on the condo itself rather than the common condo amenities, and you should always schedule a condo pre-purchase inspection. You should also consider hiring a realtor to help you through the process.
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