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What you should know before buying a condo

What you should know before buying a condo

Zillow recently reported that the Twin Cities area is likely to be one of the hottest housing markets in the nation this year. We’re barely starting on the second quarter but sales are already breaking some records. If you’re looking at relocating to Minneapolis and specifically looking at condos for sale in Minneapolis, you will want to go through this “getting started” checklist. Condos are a hybrid between apartment living and home ownership and, as such, are a dream scenario for some but a poor choice for others.

Community living

Almost anyone thinking about condo life will be attracted to the balance of price tag, amenities, and reduced maintenance responsibility. Other people are specifically attracted to the communal living, as there will be many shared areas, recreational possibilities, and consensus-driven decisions. This is welcome for those who are seeking a nudge to get social, meet the neighbors, and hit up that tennis court when looking at condos for sale in Minneapolis. Other homeowners may balk at the possible restrictions.

What’s included?

Since condos are a hybrid, there are varying gray areas in terms of ownership from complex to complex. Where is your parking space, is it covered, and how many spaces do you have? Where is visitor parking? Is there additional storage? Does your ownership extend to porches, patios, verandas, and gardens? This last item is important to know about ahead of time, as it will impact your ability to modify and upgrade, as well as determine who pays in case of damages.

Financing

While the condo price tag will look lower at first, there are narrower lending opportunities to finance the purchase because there are resale factors beyond the buyer’s control, such as the owner-occupancy percentage in the complex. You may have to put down more cash up front for a condo mortgage when relocating to Minneapolis. If you’re planning on obtaining a Federal Housing Administration Loan, ask if your desired condo community is on your lender’s approved community list.

Fees

Condo association fees could cover almost anything, including water and sewer services, landscaping, amenity upkeep, trash removal, snow plowing, road maintenance, and insurance. The fees might be collected monthly, quarterly, bi-annual, or annually from each resident. Make sure you understand the schedule and fees allotment before making a move on any condos for sale in Minneapolis. You’ll also want to ask about assessment fees. These are one-time demands for funds to handle big issues like roof repair. Make sure you understand the community’s policy before moving in.

Moving in and moving on

Many people see condos as a stepping stone in real estate ownership. Thus, it’s important to grasp the unique features of buying and selling this type of property. There are different contracts to sign when moving in and different factors to think about when leaving. Typically, condos appreciate far slower than homes, so the investment will likely not grow with you as your family does. Additionally, the resale value depends on how many units are vacant and if the others are rented or owner-occupied.

Keep the above information in mind when looking for your condo, and you’ll find a space you’ll love. For the best condo options here, get in touch with me, Adam Fonda, at 612-308-5008 or send a message to adam(dotted)fonda(at)lakesmn(dotted)com.