What are your thoughts on Condo purchases? It seems there's so many variables out of buyer's control. I feel it can be a big risk.

Asked by Isaac Eilers, Kirkland, WA Tue Apr 10, 2012

Condo Purchase. Risked Involved. Foreseeing the future of condo sales.

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Adrian Chu, Agent, Seattle, WA
Mon Jul 23, 2012
It really depends on the purchase price. One way to gauge the value of a condo is the potential for it to be an investment. Look at what comparable units in the area are renting for. After deducting HOA dues, property taxes and other expenses each month, does it cover your mortgage payments? Will you be able to get positive cash flow each month? Those can be one of the best condo deals out there.

It's also important to see if the building is in good condition and well-maintained, so that there won't be any upcoming special assessments. Look into the HOA's financials. Also, check if there's any litigation or any potential for litigation.

Even if you are planning to occupy it yourself, it feels good to know that there is more than one profitable exit strategy when you plan to move out (besides selling).

Feel free to let me know if you have further questions. Hope this helps!
Web Reference:  http://www.AdrianChu.net
0 votes
Mack McCoy, Agent, Seattle, WA
Wed Apr 11, 2012
All investment is, by definition, risky. I've sold a bunch of condos, done a little development, and own one - I don't see them as especially risky, but I do think I have a decent idea of what to look for when evaluating them. But, you never really know what you don't know, right?

Most people, in my view, will have better success if they give up some control. You drive around, you see how well people maintain houses - mossy roofs, cracked driveways, downspouts detached - you don't see that so much with condos. A little bit, but not as much. So maybe giving up some control is a good thing, some times.

The future is uncertain. And where there is risk, there may be the potential for real reward.

All the best,
0 votes
Jeff Dickin…, Agent, Bellevue, WA
Wed Apr 11, 2012
Buying a condo can be a great way to own real estate, but there is a higher level of due-diligence in your purchasing process. Buying a condo can be similar to walking through a mine field, you have to be very well represented by an agent that knows condos and a lot of research/investigation needs to take place to make sure the condo is right for you. I have developed a 22 point list that I use with my condo buyers and sellers to help determine if the condo makes sense to purchase. I would be happy to send you that list at jeffdickinson@remax.net
0 votes
Mack McCoy, Agent, Seattle, WA
Tue Apr 10, 2012
I think you shouldn't buy one.
0 votes
Thank you, I try.
Flag Wed Apr 11, 2012
Elaborate.
Flag Wed Apr 11, 2012
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