If you are not yet working with a Realtor, which it sounds like you are not since you're asking a question like this here, you should get with one as soon as possible. Not only do we know the ins and outs of condos, but can also help you get pre-approved if you're financing or help you provide proof of funds with an offer if you're paying cash. I happen to know the condo market very well, have some excellent lenders that can help you if needed, and have a great team of inspectors and title people to assist us throughout the process. I am one of the top rated Realtors in the greater Austin area and do not charge anything for my extensive services. Best advice I can give you is to get with an excellent Realtor such as myself as soon as possible, as rates are starting to climb and you should move sooner than later. Contact me directly if you would like some free, professional guidance. Thanks, Joe
Joe Jarusinsky, Realtor/Master Instructor, Keller Williams Realty, Austin's #1 Real Estate Company, Call 512-261-4415
John Crowe, Broker
There are a lot of good answers and a lot of information you really need to fully understand when considering purchasing a condo. As a Realtor and mortgage broker I fully understand both aspects of buying a condo. Depending on the Condo itself there are many aspects that not only effect your ability to purchase but will also come into play when you decide to sell some day. Understanding these pros and cons is vital to making an informed decision to maximize you ability to not only find a home but also obtain a property that will help you earn a return on your investment over the years.
Hope this helps.
Don Groff | REALTORÂ® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | email@example.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Your observation should be perceived as a "red flag." Buyers should be concerned about any type of home the consider purchasing. This is why it's so important that you identify and work with a local agent that knows their stuff and will represent your personal interests.
There could be any number of reasons why condos aren't moving as fast as other properties. One consideration, as you point out, lenders have invoked high standards in order to protect their interests. They typically make buyer jump through hoops that haven't existed until recently. They and you should be concerned with the vacancy numbers, number of units on the market, number of past and current distressed sales(short sales & foreclosures), the annual financial report, past, present, and future projects, recent assessments, reserve funds, fee structure etc. This information is critical to making a sound decision and buyers should make certain they have everything at their disposal before going to contract.
If there seems to be an inordinate number of properties on the market in your target community, this may be a sign that something isn't right because people that truly like where they are living tend to want to stay where they are.
Give me a few minutes to talk with you and expain the above in greater detail. What do you have to lose?
A good REALTOR and lender can plug in an address of a complex and tell if it is a warrantable FHA complex.
Single family homes account for about 90% of residential sales, and condos about 10%, because people like grass, privacy, a place for a dog to run, or a garden, or a swingset. So single family homes sell faster, and appreciate more rapidly.
Warrantability is determined by many things, such as Reserves, Landlord/Owner Ratios, Commercial ratios and delinquencies, just to name a few.
So, yes, you are correct, condos can be very risky! You just need an Agent and a Lender that knows condos, front and back. Good Luck!
Financing can be an issue. It's impottant to know all the ins and outs of each complex. The monthly fees to the HOA are an added cost that will never go away and can go up on top of possible unplanned assessments.
If I can be of assistance give me a shout.