7 Mistakes Made By Buyers when Buying a Condo

By: Denise Stewart

Common Mistakes by Buyers of Condos

Most buyers of condos in South Florida believe that the condo must have a "Wow" factor, and will settle for nothing less. While there is nothing wrong with this attitude, there are certain other aspects of buying a condo that you should be aware of. Below we have summarized what we believe are the 7 most common mistakes Buyers make during the purchasing process. Hopefully reading these mistakes will cause you to think through the process and save you some time, money or heart-aches in the future.

Mistake #1- Not having a proper Inspection. No matter how new or old the condo you are looking at is, you need to have it inspected by a professional inspection company. Even brand new construction needs to be inspected for several reasons. In the past 2 years, problems like improper wiring, permitting issues, faulty plumbing, improper drainage, and a variety of repairs need to flooring, ceilings and developer installed cabinets. Most of these items might be taken care of after the closing by a reputable Developer, by why take the risk and have to hire an attorney if these items can be taken care of prior to the closing. These issues arise whether your condo is being purchased for $200,000 or $2 Million. Some instances that have arisen have been in more expensive units because by the very nature of the size and quality of the materials, the dollar value of the issues age generally much greater. While you are ordering your inspection, call your insurance company for your contents coverage, and ask them if you will need a "Wind Mitigation Inspection".  This may save you on your premiums. So remember, hire an inspector. The cost is generally between $300 -$500, and it is worth every penny.

Mistake #2- Not knowing what you can afford. Most buyers are pretty sure that they know how much they want to spend when they are looking for a condo. If you are a cash buyer, your decision may be based on the amount of available cash. If you are getting a mortgage, your decision may be based on how much you think you can borrow. With interest rates this low, buyers should consider how much they can borrow before they start their search. For example, if you are buying a  condo and could purchase a much more desirable unit for an extra $50,000, the difference in your monthly payment could be as low as an extra $239, as a 4% interest rate. If this extra purchasing power will get you an extra bedroom, or a great view, it may be money very well spent, especially when it is time to sell your condo.

Mistake #3-  Not checking out the restrictions of the HOA. The HOA (Home Owners Association) is the governing body of the Condominium Association. The HOA is responsible for enforcing the Condominiums rules, as well as the restrictions contained in the Declaration of Condominium. These restrictions have to do with renting your condo, pet policies, occupancy policies, parking of cars, motorcycles, RVs, boats, as well as use of the pool and other common amenities. The worse situation you can be in is to have assumed that you can do something, and after you buy a condo find out that that your intended use will violate the Condo rules. Most of the time when agents ask buyers what they are looking for in a condo, buyers may forget to ask questions about the restrictions, so it is very important to read the Rules & Restrictions and ask these questions even before you think about making an offer on a condo. If you own a truck, and the condo has a restriction against trucks, you need to either sell the truck, or look for another condo. The 2 biggest restrictions that most condos have that cause issues have to do with pets and renting of the condos.  Just because you hear a dog barking, does not mean that you can bring your dog, and just because you heard that you can rent units in the complex, does not mean that you can rent your unit for the time periods that you may want to rent for. Pet restrictions change from time to time, and rental restrictions are also being changed with some condos becoming very strict on their rental policies. Just remember, make a list of questions, and ask someone from the association, and ask for it in writing to be safe.

Mistake #4-  Not checking the financial condition of the Association. Most contracts for condos give you the right to review the financials of the association. The last thing you want to do is buy a condo, and a short time after closing find out that the association is raising the assessments or even passing a special assessment for repairs. These are issues that most associations will share with any buyer if the buyer simply asks prior to purchasing the condo. If you are considering buying a certain condo ask for the president's name and contact information. If there is a management company, call the management company and ask them what expenses have the association talked about, and what upcoming repairs and improvements are being planned. Their answer may mean the difference between you buying or not the condo. On one hand you want to know what the expenses are and not be surprised, and on the other hand it may be good that the association is doing these repairs. 

Mistake #5- Not Verifying Parking Spaces, Storage Space, and Bike Storage.  If you have 2 cars, you should confirm that you will be able to park both cars in the condo, especially during the season.  If someone tells you that "Parking is never a problem" that is something that you will want to see in writing because somee associations have had extra cars towed because of owners parking in other unit owners spaces, or because of the other rules which may restrict the length of stay of vehisles.If the rules state that you have 1 parking space, and the visitors spaces cannot be used by any one owner for more that 3 consecutive days, this may end up being a problem if multiple owners get a 2nd vehicle. Another issue that arises from time to time is designated space for general storage, and storage of bicycles. Just because you see a bicycle being stored in the underground parking space does not mean that you can park your bicycle in the garage. Ask for the rules in writing!!!

Mistake #6-  Not getting what you want/need. The biggest problem that condo buyers have is out growing their condo. The second biggest problem that condo buyers have is not buying a condo that fits their lifestyle. If you are going to have kids, you need to consider that when deciding how many bedrooms you need. If you are going to need space for a home office, and you are buying a 2 bedroom and you have children, you are probably making a mistake. If you know  that you have always wanted to live in a condo that has a boat slip, then look for a condo that has boat slips that you can buy or rent. There are many web sites that you can be put on alerts just for these reasons, like www.condo.net. If you know that you are having back or other physical issues, then consider condos with no steps, or possibly only buying a unit on the first floor. This is what we call separating your "wish list"  from your  "Must-have list", and as long as you can afford it, try not to compromise.

Mistake # 7- Not hiring the right professional help. This involves everything from your inspection company, title company, mortgage company, real estate company, and after you buy any trades that you need, like painters, electricians, plumbers and other construction trades. A true real estate professional will refer you to someone else if they are not familiar with what you are looking for, so ask them outright: "Are you familiar with the Condos in the area I am looking in?"  and if they are not, you may want to keep looking....

If you have any questions or comments about the contents of this article, you may contact the Author at the following: Denise@Condo.net  or 866 783 6011