How to Buy a Condo or Co-Op Apartment
Buying a condominium or cooperative apartment is a lot like buying a single-family home, but there are things to consider that are unique to this type of property.
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Things You'll Need
- Financial Calculator
- Credit Cards And Loans
- Personal Organizers
- Cameras
Instructions
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Look at the amenities of the development. Some developments are small while others are almost completely self-contained complexes.
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Consider the homeowners' association dues.
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Review the binding rules (known as Covenants, Conditions and Restrictions, or CC&Rs) of the homeowners' association. Make sure they won't affect your lifestyle. (Some places have many limitations, such as not allowing pets outside or parking outside - even in your own driveway.)
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Review the recent repairs done to the unit you're considering. Will a major repair - such as a new roof - be necessary soon? Does the association have sufficient reserves to pay for the repairs? Speak with the secretary of the association and request a copy of the bookkeeping statements it provides to prospective buyers.
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Notice the overall condition of the complex. Is it well-maintained?
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Identify the number of units for sale compared with the overall number of units. At any time, there should only be 4 to 5 percent for sale. Anything higher might indicate an adverse condition.
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Talk to owners in the complex or building. Often, disgruntled owners are more than happy to tell you what's really going on.
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Look at the area surrounding the complex or building. Is it already developed, or could some undesirable neighbor, such as a factory or unacceptable business, move in?
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Be aware of what is covered by homeowners' association insurance and what the association is responsible for, such as roofs, common areas and landscaping.
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Tips & Warnings
Condos and co-op apartments often don't appreciate as quickly as single-family residences and often don't sell as quickly.
In order to buy into some co-ops, you have to be interviewed and approved by the co-op board.
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Comments
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Nov 22, 2005
Having owned and lived in a condo for 15 years, I have two warnings: Check out the condo board and the management company before you buy. They can be dictators, self-serving, and cost you money and grief. Ask lots of other owners and real estate agents. -
Nov 22, 2005
Ask about any lawsuits against the developer or the association in the past of contemplated in future. In the case of the Co-op, find out about the existing financing. Ask if a Co-op interest can be financed separately as a partial interest.
