Donna Panico

It would be best to talk to an agent in the area where you are considering purchasing because all real estate is local. It's also a good idea to speak with an agent who will be representing you and your interests in a transaction for an unbiased opinion.

Generally speaking, anytime you place limits on who can buy in an area, your prospects for a sale will be less than if the playing field is open to anyone. That said, there are people who prefer to be in a community that reflects their age demographic and they would welcome the opportunity to be a part of such an association. Normally in an age restricted community, it is still a requirement that 20% of the units are available to people of all ages.

A few things to keep in mind when purchasing a condominium include financing and number of units sold. In some areas, financing will be limited especially when a development is new. Many lenders will restrict the type of loan being available when there is fewer than 80% of the total project sold. The restriction could be that they may only offer an adjustable rate mortgage or they may expect a greater downpayment, etc. In areas where condominiums have been overbuilt and are just sitting on the market without being completed, you may see the developer offering units at a lower cost than those which were sold earlier in the project. This is a tough pill to swallow for a current owner who may have paid a higher price and could not compete with the builder should they need to sell in this market.

Another issue when considering a condominium is the association fees. Be sure to compare apples to apples in regards to what you're getting for your money. Review balance sheets from the association to get a clear snapshot of how financially solvent the entity is, and their history of added costs to the owners as well as outstanding and anticipated overhead. When buying into a development which is new and still in the hands of the builder, it may be difficult to get a true comparison because the development will lack a financial history.

Best of luck to you! - Sun Dec 6 2009, 17:14