Red Flags to Look for When Buying a Condo
Category : Buying Condo
Purchasing a condo can be a great investment, but it’s important to always know what you’re getting into. Being aware of red flags when buying a condo can help you make smart decisions and ensure the best outcomes.
Poor Financial Documentation
Before committing, request a resale package from the condo association. This package contains important financial documentation, such as bank statements and reports on profit and losses. If the association doesn’t have these documents or won’t provide them, that’s a red flag.
High or Low Fees
Avoiding properties with astronomical fees is a no-brainer, but also be wary of low fees that seem too good to be true. Inquire whether the association expects fees to increase over time, and review contracts carefully to avoid fees creeping upward once you’re locked in.
A reserves account is the association’s savings for unexpected projects or repairs. If the reserves seem too skimpy, it may be a sign that the association isn’t well-prepared, or that they may expect to charge you higher fees in the future to compensate.
Staying cognizant of red flags when buying a condo is important for protecting you and your savings. Knowing what to look out for can save you money and make the experience much more pleasant.