Buying a Condominium - 6 Vitally Important Numbers You Need To Know

The 6 Most Important Numbers A Condo Buyer Needs To Know And Understand.

Condominiums offer a great alternative for home buyers!

There are some very good reasons why you might consider buying a condominium. But knowing the following 6 numbers, and their importance, will help you buy the right condo.

1) Is the Price realistic?

Your real estate agent should know if the 'asking price' is in-line with recent sales. A good REALTOR will know to go beyond the sales of the building you might be looking at. Comparing to other, similar condos in the same general market area is also a valuable step. Make sure you know how much other, similar condos have sold for.

2) The Age Of The Building

Older condo buildings might need more upkeep or repairs. Knowing the age of the condo will help you determine if the next few numbers are realistic.

3) The Size Of The
Reserve Fund

Closely tied to the previous point. Older buildings should have a significant reserve fund built up.

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4) Your Ownership
Percentage

Any change is monthly fees or sudden repair cost is assigned according to percentage of ownership. If you are 1 of 5 owners, you'll be on the hook for 20% of any costs. This is a double edged sword. If you are 1 of 200 owners, your contributions might only be 0.5%. However, you'd also be living in a HUGE building, where repair and maintenance costs would be significant. Yet another reason to make sure that the current Reserve Fund balance is realistic. Avoid buying into an old building, which has low reserves $, where you might end up owning $20% of any sudden repair bill. (Special Assessment)

5) Your Monthly Condo Fee (HOA Fee)

Yes, your monthly fee is important, but also find out WHAT is included. It often includes some of your utility bills as well. More About Condo Fees

6) How Much Money Is Going Into The Reserve Fund?

Sometimes a low condo fee (HOA Fee) simply means that very little $ is going into the reserve fund. Make sure that contributions are realistic. As they used to say: "Pay me now....or pay me later"

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