The Condo Buye RÕs Guid E

TheCondoBuyer’sGuideFROM START TO FINISH

CONDO BUYER’S GUIDE20 QuestionsTo Ask WhenBuying a Condo1CONDITION?2COMMON AREAS?3FOR SALE?4OWNER OCCUPIED?5CONDO FEES?6RESERVES?7BOARD TEMPERAMENT?What’s the condition of the unityou’re considering—the building—the entire complex?Are common areas wellmaintained?How many condos are forsale? (A large percentagecould be sign of problems.)What percentage of the units areowner-occupied? (Lenders maybalk if the majority are rented.)How much are the condo/association fees and whatdo they cover?Does the association haveadequate reserves for emergenciesand renovations? (If not, you couldface a special assessment.)What’s the temperament of thecondo board? (Board minutescould reveal controversies.)8LAWSUITS?9INSURANCE?Are there pending lawsuits againstthe association or judgments youmight have to help pay?What does the association’s insurancecover? (You may need supplementalinsurance to protect everything D?14PARKING?How much outstanding debtdoes the association have?What percentage of the unitsare in arrears on their dues?Does the seller owe back fees orassessments that may becomeyour responsibility when you buy?What’s the neighborhood like? (Askneighbors and walk the area at nightand on weekends to check whenresidents are home.)Does the unit come withreserved parking?15GUEST ?20Is there adequate additionalparking for guests?Will you have extra storagespace for bikes, paddleboardsand the like?Is the association managed by aqualified professional company?Does management handle owner’srequests and complaints quickly?Do association rules limityour ability to rent the unit?RESTRICTIONS?Will restrictions prevent you fromchanging visible elements such asthe color of the front door or yourwindow coverings?Condos have a variety of uniqueattributes that distinguish themfrom single family homes.Be sure to get these questionsanswered to avoid costlypost-closing surprises.Sources: Florida Realtor, Realtor.com, Bankrate.com, Investopedia, Federal Housing Authority

CONDO BUYER’S GUIDE123START SAVINGA 20% cash down payment istypically required when purchasinga homeYou can narrow your choices bystarting your search onlineGood credit is key to securing a homeloan with favorable termsCALCULATE WHAT YOUCAN AFFORDA simple calculation will show youhow much home you can buy4GET MORTGAGE APPROVALA mortgage broker can help yousecure approvalsCHOOSE A REALTORIdentify a condo expert that knowsyour buildings of interest89NARROW CHOICESA building visit with your realtor willhelp you narrow the field7Many buildings have online tours tostart the processCLOSE & MOVE IN!Your agent can help you withthis process10Identify issues for sellerrepairs or credits6VISIT CONDOSMAKE AN OFFERSCHEDULE INSPECTION5DECIDE WHAT YOU WANTIMPROVE CREDIT SCORETime to celebrate and unpackinto your new home!11FINAL WALKTHROUGHOne more step before it’s yours12

CONDO BUYER’S GUIDEKEEP TRACK OF CONDO CONDITIONSBy tracking the status of the condosyou visit, you’ll be able to negotiatepurchase price reductions and creditsfor a more favorable deal.FLOORING, WINDOWS & CEILINGBATHROOMSYFLOORNCOMMON ITIONPACKAGE SERVICELEAK-FREE?TYPECABINET & STORAGE SPACE?WINDOWSLOBBYDOORMANWORKING FANS?AGESECURITYFUNCTIONING TOILET?MAILROOMINTERIOR & EXTERIORHURRICAN DITIONNCABINET & STORAGE SPACE?WORKING GARBAGE DISPOSAL?BATHROOMROOMS - BEDROOM 2NYGYMSTAINS?NEED RE-PAINTING?SOUNDPROOF?BATHROOMCONDITIONGARAGEY NELEVATORSYAGECONDITIONNCREAKY?CONDITIONSIGNS OF DAMANGE?CLOSETSBATHROOMACTIVITY ROOMCONDITIONNCLOSETSNCONDITIONWALLSCONDITIONROOMS - BEDROOM 3POOLWORKING FANS?CLOSETSYHALLWAYSLEAK-FREE?CONDITIONYSPACE & PRICESTAIN-FREE?ROOMS - BEDROOM 1YSTORAGEBUILDING SIGNAGEDOORSYLANDSCAPE & CURB APPEALNGATEOPEN & CLOSE PROPERLY?WEATHER PROOFED?WORKING DOORBELL?GARDENS

CONDO BUYER’S GUIDEUNDERSTAND YOUR CLOSING COSTSClosing costs for condos vary from state-to-state.Costs from a typical market are shown below.Origination Fees:Credit Report Fee:Appraisal Fee:Home Inspection Fee:Title Search Fee:Lender’s Tilte Insurance:A fee charged by your lender to process the paperwork on your loan. Thisfee typically ranges from 1-2% of the loan amount and includes the LoanOrigination Fee (commission), Processing Fee and Underwriting Fee.The bank or mortgage broker will require a credit report todetermine your ability to pay back the loan. Typically under 100.This third-party estimate of value helps you and the bank determine ifthe home has adequate value for the requested loan. Appraisals rangefrom 500 - 1000.This fee is charged by a licensed inspector that reviews the condo’s structure,electrical and plumbing systems and tries to identify other potential issueswith the condo. Inspection fees range from 250 - 500.To ensure you will have the proper chain of title when you purchase your condo,a title search is required and ranges from 100- 250. Sometimes this fee isincluding in a package which includes title insurance and attorney fees.Lenders require borrowers to buy an insurance policy to cover the lender in casethe title is later found to be defective. Fees vary state-by-state, but can rangefrom a few hundred to a few thousand dollars depending on the size of the loan.Postage / Courier:A lot of paperwork is involved in the sale of a condo, and in some cases, yourlender may hire a courier to transport the documents quickly and securely.Fees are approximately 100.Attorney, Closingand Settlement Fees:Lender costs for their counsel to review and prepare the loan documents forclosing. Costs range between 500 and 700.

CONDO BUYER’S GUIDETHERE ARE UNIQUE COSTS ASSOCIATEDWITH NEW CONSTRUCTIONConsult with your attorney or real estate agentfor more details.Recording Fees:Transfer Tax:Homeowner’s Insurance:Fee charged by the local government to make a public record of thesale to serve as a means of notice. Fees range by location but aretypically around 200.An amount charged by some state and local governments on allhome sales. Rates very by location.Lender’s require you to have homeowner’s insurance at the time ofclosing and it will often be prepaid. Premiums vary by coverage and state.Mortgage Insurance Premium:Based in the size your downpayment, the lender may require you to pay formortgage insurance which will be pad at the time of closing.Owner’s Title Insurance:Optional insurance policy that covers the homeowner from issues with title.New Construction Costs:Depending on the state (NYC has a variety of fees), there can be additional costswhen buying in a new building. These costs may include a Resident Manager’sFee (building super), developer / sponsor fees, working capital contribution forthe common areas and other attorney fees. Make sure you get all fees in writingfrom the developer or broker when buying new construction.

CONDO BUYER’S GUIDECONDOS ARE VERTICAL COMMUNITIESWITH HUNDREDS OF RESIDENTSMake sure the building’s lifestyle andresident mix is right for you.Getting a Good DealThe best way to see if you are getting value is by having your broker provideyou with a CMA or competitive market analysis. This will show you comps forsimilar condos that have recently sold.On Condo.com you can see all available inventory by building and how yourspecific property compares in terms of price, price per square foot and timeon market. If there are no comparable units for sale or recent sales within yourbuilding of interest, you can review comps in nearby buildings and the localneighborhood.It is important to note that condo values are hard to automate because of thevarying views and location within the building. When relying on web-basedvaluation tools, be sure to consider what floor your property is on and whetheryou’ve got a city, bay, golf course or ocean view.Know your data before making an offer.Understanding the Residents andYour Building's CommunityEvery condo building is a distinctcommunity with a different type ofresident and lifestyle. In order to get agood sense of the building’s characterand resident type, there are threeprimary tools we recommend:SOCIALREVIEWSNEIGHBORHOOD DATA & POINTS OF INTERESTin addition to the building reviews onCondo.com, there are a variety of websites thathave building reviews for apartments and condos.See what your potential neighbors are saying.To understand the restaurants, shopping and points of interest aroundyour building, use one of the many neighborhood review sites tounderstand what’s to do in and around your building. Condo.com hasa comprehensive list of local restaurants, shopping and activities oneach building page.Many buildings have their own Facebook or Instagram pages.You can quickly get a sense for the residents and buildinglifestyle by reviewing the building’s online media accounts.Don’t judge a book by its cover, but use social as a point ofreference in your overall decision-making process.

A fee charged by your lender to process the paperwork on your loan. This fee typically ranges from 1-2% of the loan amount and includes the Loan Origination Fee (commission), Processing Fee and Underwriting Fee. The bank or mortgage broker will require a credit report to determine your ability to pay back the loan. Typically under 100.