Buying a house can be a daunting endeavor because it comes with an inherent degree of risk. Between fluctuating markets, structural surprises, changing personal circumstances, and other unpredictable factors, purchasing a house presents both known and unknown risks; because of this, the market has seen an increase in the purchase of condos over traditional homes.
This jump in condo purchases is readily apparent in Arizona, where condos are more affordable than similar options in surrounding states. Condos have minimal exterior maintenance, a strong and consistent market demand, and easy access to amenities, which makes them enticing as a retirement option, second home, or investment opportunity.
Before you buy a condo, take time to understand the most common mistakes consumers make during the buying process. Read below to familiarize yourself with some of these pitfalls and learn how to avoid them for a smoother condo purchasing process.
Waiting Too Long
Whether you’re waiting for prices to drop or for interest rates to lower, the number one mistake you can make is to wait too long. Once you’ve decided that you’re ready for a condo, research where you would like to buy and act quickly. Due to fluctuations in the real estate market, the condo you have your eyes on might become unaffordable if you wait too long.
It’s tempting to wait for the perfect place to pop up, but what is perfect for today may not always be a good fit for tomorrow. Take a look at your current lifestyle and buy a condo that is flexible for any potential lifestyle changes down the road.
It’s a common misconception that buying directly from the seller saves you money; however, when someone is selling their condo without a realtor, it doesn’t necessarily guarantee that you’ll save anything – and you’ll possibly pay more. You might be surprised to find out that buying from the seller can cause you to pay more than the market value.
If you work with a realtor, they can act as a mediator to help you and the seller ensure a fair deal. A realtor also brings industry experience, market knowledge, and guidance to help you avoid common mistakes during the negotiating and buying processes.
Buying More Than You Need
If you’ve previously owned a home or condo, you know how important it is to buy only what you can afford. Biting off more than you can chew quickly turns your new investment into a sinking ship.
If you buy a condo beyond your means, you might put your retirement or savings in jeopardy. To help prevent this, calculate your budget and estimate how much you can reasonably afford before you purchase. Choose a condo with a mortgage that allows you to maintain your current lifestyle without putting your savings or credit at risk.
Not Doing Your Homework
When you’re thinking about buying a condo, don’t forget to do your research ahead of time. Look into specific items like a condo’s amenities, rules, restrictions, and HOA guidelines.
Technical details about the homeowner’s association, the ratio of investors to owners, and community feedback are other great ways to gauge whether the condo you’re considering is the right choice for you.
Look Before You Leap
Familiarizing yourself with these common mistakes can help you buy a condo with confidence, and taking the time to compare the risks versus the benefits can help ease your apprehensions.
If you’re interested in a condo, contact our representatives at Aderra Condominiums to find out more about our different resort-style residences.