Tips for Buying Condo Bargains this Winter
To buy while others are selling has long been celebrated as a savvy way to shop. But these days it is also possible to buy without hardly any competition from other bargain hunters, which makes it even easier to make a wise and lucrative investment.
The way to do it is to purchase a condo during the current “off season.” We are already middle of one of the most lopsided buyer’s markets in decades, and those who shop during the traditionally slow winter months this year can amplify their chances of getting a great deal on a condo.
Here are a few tips for purchasing a condominium this winter, while others are hunkered down waiting for springtime to come.
Line Up the Mortgage Financing Early
Especially these days financing is critical, so speak to a mortgage lender ahead of time and get a letter stating that you have been pre-qualified or pre-approved for a loan. Sellers are eager to find able buyers, and will often make valuable concessions or throw in perks for those who demonstrate that they have funds and can close a deal without any delays or disappointments related to banks and mortgage companies.
Buy While Nobody is Shopping
The slowest time of year for real estate sales is during the winter months, especially around the holidays. Begin browsing for condos right away to take advantage of winter pricing in addition to the deep discounts already being offered because of this year’s unusually slow market. Condo prices in Florida, for example, have dropped substantially within the past few months – even in world class destinations like Miami Beach. Other attractive markets where condos can be had for prices lower than buyers have seen in many years ago include New York City, San Francisco, Chicago, and Atlanta.
Scrutinize the Condo Association Records
Condos differ from single family homes in profound ways, and buyers should always carefully study the rules and condo association legal documents before purchasing. Find out what fees are required and how those monthly or annual fees are spent, which amenities are shared by all condo owners, and what repairs have been done or are planned in the future. The best managed condo associations have adequate cash reserves to cover maintenance, repairs, and improvements and they can show a track record of timely response to homeowner needs.
Use an Attorney Before Finalizing a Sale
Everyone can benefit from the expertise of a good real estate lawyer to review documents at closing, but when buying a condominium it is a good idea to seek legal counsel long before signing an offer to purchase. The attorney should thoroughly explain ownership rights or restrictions, for example, to avoid any unpleasant unexpected surprises. New owners planning to rent or lease a vacation property, for instance, may later discover that they are not allowed to do so – or pet owners could find out they are not allowed to have pets in the condo development.
Hire an Inspector
Always use professional inspectors to evaluate property before buying, and when shopping for condos make sure they also scrutinize the overall building and facility. An individual unit may be fine, for example, but if the roof of the building it shares with other units is in need of repair, that could be a problem. The same applies to exterior paint, central HVAC systems, elevators, and other components of the overall condo property.
Check Occupancy Rates
Buying into a condominium project with low vacancy rates means resale values will likely be higher because the condos are popular. Being one of the only homeowners in an otherwise empty condo development, on the other hand, can be a lonely experience. More importantly it may indicate that property values are falling as each owner’s share of the expenses needed to maintain the project go up, which can be a financial burden on each resident
Know How to Shop Long Distance
Many buyers of condos are looking for a vacation home or getaway, and that often means purchasing far from home. But that does not have to be a problem. Just solicit recommendations from a trustworthy local Realtor who can give names of real estate professionals in the out of town location. Or better yet, consider working with a hometown Realtor who will agree to act as a buyer’s agent to handle the transaction personally and deal with out of town brokers as your own representative.
Many economists expect the housing market to turn around in 2009, and it will be an entire year before winter discounts are again available. So the next several weeks may be the last chance to capitalize on off season condo bargains. Make a wish list, follow the above tips, and that special dream condo for a primary home or holiday getaway may become a New Year’s reality.
To find a qualified real estate agent to help you find and buy a condo, visit www.GayRealEstate.com or call toll free at 1-888-420-MOVE (6683).They specialize in expert service dedicated to the GLBT community.
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Jeffery Hammerberg is Founder and President of Gay Real Estate, Inc. – the nation’s largest group of companies connecting gay & lesbian home buyers and sellers to gay, lesbian and gay friendly real estate agents. Since 1997, Hammerberg has created a virtual real estate marketplace for the LGBT community.
Photo credit: www.GayRealEstate.com.
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