Purchasing a cooperative apartment or condominium is much like
buying a single-family home, but there are other factors to consider
that make this type of property unique.
Check out the development’s amenities, as some are quite small while
others are nearly self-contained complexes. Also consider the condo fees. Review the condo rules, which are also
known as CC&Rs, Restrictions, Conditions and Covenants. Be sure
that they will not affect your lifestyle. Some places have more
limitations, like not allowing outdoor pets or even sometimes parking
in your driveway or close to your condo.
Look over the recent repairs done to the apartment you are
considering. Will a new roof or other major repair be required in the
near future? Does the condo association have enough reserves to pay for any
repairs? You should talk with the secretary of the condo association and ask
for a copy of the bookkeeping statements they provide to potential
buyers. Pay careful attention to the overall condition of the complex.
It should be well-maintained and make a good appearance, both inside
and out.
Determine the number of rooms they have available compared with the
overall number of units in the establishment. At any point in time,
there should only be about five percent of the rooms for sale. Anything
higher than that would indicate sub-par conditions. Also speak with
some condo association owners in the building or complex. Upset owners are usually happy
to let you in on how things really are.
Take a good look around the surrounding area of the building or
complex as well. Has it been already developed or could some annoying
neighbor such as a business or factory move in next door? Know what is
covered by condo insurance and what the condo association
is responsible for, like landscaping, common areas and roofs.
Co-op apartments and condos often do not appreciate as quickly as
single-family residences and usually don’t sell as quickly either. You
need to be interviewed and then approved by the co-op board in order to
buy into some co-ops.
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