7 Things To Know Before You Buy a Condominium

Buying your own home in Calgary can be one of the greatest pleasures of your life. While it may be one of the best feelings, you may suffer some stress before you could experience the taste of your own home. The real estate market is ever-growing, it faces a lot of ups and downs; however, if you find the right place for you, then you should not worry about the fluctuations because a heart wants what it wants.

There are ample options available in the market, from condos to houses and then to chalets. What matters is what you want.

Steps to Buy A Condo – A Basic Walkthrough

Let’s talk about condos today and what are the general steps to buy a condominium.

To different people, the term “condo” represents several different things. When some people hear the word “condo,” they think of high-rise towers that surround the skyline right away. While high-rise condos are popular, condos can be found in all shapes and sizes, including:

• Low-rise buildings
• Townhouse complexes / semi-detached homes
• Detached homes
• Mixed residential and commercial buildings
• Commercial lots or malls

“Condo” usually depends on the particular form of property “ownership” instead of the type of property. Nearly any kind of property you may consider can be a condo–for instance, many condominium corporations do not have residential units, and several condominiums are parking lots. Before purchasing a condo, you must understand that each condominium culture is varied.   The number of condo communities can vary, so make sure you do your homework.

Here are a few tips that you should keep in mind before getting a condominium

1. Hire a Professional Calgary Realtor

A significant difference in purchasing a condo is that, in addition to the standard sales contract, specific condo communities may require you to sign a lease before closing the deal. Generally, the agreement that an organization may have you sign must specify that you understand and agree to the regulations of the condo association. Because of these discrepancies, you must have a Calgary real estate agent with expertise in the selling of condos, by your side. A real estate agent with knowledge in the Calgary condos for sale will be able to assist you through the procedure and ensure that you do not miss any relevant documents. 

2. The Money

People often buy condos with cash due to lenders and program laws. When you intend to seek a loan, the first move is to ensure that the condo association is on the lender’s accepted neighborhood list. In most cases, you’ll need to put up a down payment. This is where you need to come up with the required finances to be able to get approval for the loan.

You can get a private mortgage to purchase a condo. That comes at a far higher cost, because many private lenders, on a condo acquisition, would demand at least 20 percent down payment. When you don’t have a large sum of money for a down payment, buying a condo may not be a good option.

3. Know the Condo In and Out

This may sound like a strange idea, but knowing what facilities the condo provides is crucial. Make sure to find out if the apartment has a reserved parking space or additional space before you buy your condo! Does the condo association have extra space for your frequent guests? Is the car park in an enclosed garage?

4. Know the Association Fees

Usually, there is a monthly, quarterly, bi-annual, or annual payment expected by each occupant in most condo communities. The association charges cover basic costs, such as repairs.

Association fees may also influence whether or not a homeowner can afford the unit. When a buyer is authorized, a lender must apply the partnership cost to the buyer’s monthly debts. If a community has a very high monthly charge, because of the high fee, a homeowner may not be able to afford it! So make sure you inquire before you take the next step.

5. Know the Association Rules

Since several condos are often close to each other, there will be rules and regulations for the community association. As a consequence, several organizations are going to have lots of specific rules and requirements to “keep the peace” in the community. It’s necessary to know that you can’t make your laws and do whatever you want, unlike a single-family home. In many instances, buyers don’t look at the rules of the organization; instead, they have a lawyer study it on their behalf.

Many communities do not allow pets, so make sure you do your homework before moving in. 

6. Inquire About the Special Assessments

It is crucial to understand what an assessment is. Usually, a special assessment is a high payment made to fund a significant community project. A substantial upgrade to the unit is an indication of a substantial undertaking that would be called a proper evaluation. If there is an evaluation of plans, the membership dues may be increased for a specific period.

For example, a condo with a $400 monthly membership fee may be increased to $500 for a year to offset the expense of repairing a roof. Any individual assessment intended will be made clear to a prospective customer with complete transparency

7. Research Maintenance and Management Company

 The jobs of the management may include making sure that the rules of the condo are followed alongside answering customer inquiries and managing the budgets of condos. If you have concerns about community rules, legislation, or payments as you purchase your condo, the management is with whom you should talk. The management plays a vital role in making the condo what it is. If the administration is unresponsive or has a bad reputation, you should find out about this before you purchase the condo.

Bonus Tip:

Usually, condos worth won’t appreciate as much as a single-family home. That’s why having a good understanding of what your plans are is critical. When you plan to stay in the condo for ten years, the appreciation rate will not be as significant when you plan to move in a year or two. It’s challenging to know what’s going to happen in the coming years, so think it through if you are buying a condo.

There will be many Calgary condos for sale so make sure you get the right one. Buying a condo can be thrilling, given that the process is pretty long; however, once you find the right place for you, it will be worth all the trouble.

When it comes to your next realtor, make the right choice. With Jesse Davies Team on your side, you’ll be worry and hassle-free. Contact us today and see how we can make your dream home a reality – any season! https://jdrealestatecalgary.ca/ | 403-969-2363