Hi, assuming there are no water/moisture concerns, etc., the next thing to do is determine if the unit is basement level or garden level. Best indications for garden level units are full sized windows, no pipes exposed, and the unit being situated only halfway underground or less (ie. if a ceiling is 8 feet high, then only bottom 4 feet is underground). Basement units are usually mostly underground with tiny vent-like windows and pipes exposed. Garden level units are worth more than basement units.

I work with a group of investors that focus on buying these types of units in desirable locations because they get more square footage for their buck. There is also less competition or auction potential for these units. The other bonus is that even though there is relatively more square footage, the HOA fee is often relatively less because it is garden level (or a basement level unit). The investors targeting these units will often rent them out and because they are in strong markets they will be high-yield cash flow investments. Garden level units are also an excellent way for owner occupants to get into more desirable markets for less cost. As long as the purchase price is 15-30% discount to truly relevant comparables (start by looking at recent sales in the same building) it is usually a safe basis. Again, I am referring mostly to garden level units in desirable markets because rents will usually be strong, and owner occupants can usually depend on a strong exit at resale. Therefore, the best combination for an owner occupant considering a garden level unit is reasonable purchase price with low HOA and low taxes. Hope it helps, but you should look at garden level units because you might be surprised or even impressed....especially when you run the numbers.

Hi Catherine- Be careful of security as well. It should have window grilles/ grates on them to add security- but they should be easily openable in case of fire or emergency, from the inside.
How does the lot/ land sit around the building? Is there an area where the ground is sloping down to the basement unit? That could spell some trouble- maybe.
What type of foundation wall is it? If it is fieldstone (old style) that would be more susceptible to leaking.
If you have other questions, or if I can help with financing, please contact me. Thanks and good luck,

Ken L.

Be careful that the parking area and your basement window, if one aren't level with each other.....water can leak into the apartment......also check for drains.....when there is a heavy snow fall it results in a lot of melting and the excess water has to go somewhere....could be to the basement. The pricing is low on a lot of bank owned but be sure to find out everything about the complex before purchasing.......good luck.

If you are buying it now, it should be at a pretty deep discount. Basement units sell poorly in recessions. If you don't mind a basement, you may get a good deal on it. The people who get burned on basement units, one bedrooms units, or other less desirable choices for condos are those who buy them at peak, when the price differential is not as steep.

I can't give you a figure for how much less, because it varies from condo to condo.

Also, are you sure that the place is water tight? Does it have good light and ventilation and fire egress!