Start with the physical basics. Is the unit large enough to meet your needs? Is there adequate storage? Is there additional storage available in the basement or elsewhere in the building? Is it an added cost or is it included in the purchase price? Is the room layout acceptable? Is it even livable?
What about the soundproofing in the walls? There’s nothing you can do about the fact that other people are living in the building, but if you sneeze and the occupant four stories up says Bless you,” you may want to reconsider.
Remember my advice in chapter 8 about getting copies of back utility bills from the seller of a single-family home? The same thing applies to condos. You want to estimate as carefully as you can how much it will cost you to occupy the unit. If it’s a new development, you’ll have to rely on the developer’s estimate of what those costs are likely to be, but you can check by looking at the costs for comparable units in comparable buildings. One important question to ask the broker or the developer is whether there are individual meters — or even separate systems — for electricity, heat, and water, which means you pay for what you use, or central meters for the en- tire building, which means you subsidize owners who are less conservation-minded than you.
In looking at the cost of any condominium, don’t forget to factor in the monthly maintenance fee, sometimes known as the common-area charge or condo fee. (Bear in mind that lenders will add that fee to your monthly PITI calculation in their assessment of your ability to qualify for a mortgage. Also remember that your monthly fee in a condo is not a tax-deductible expense.) You’ll want to know not only how large that fee is but precisely what it covers. Is access to the pool and exercise room included, or is there an extra charge for that? Is parking included in the fee?
Speaking of parking, are the spaces “deeded”? That is, do the unit owners buy their parking spaces too, as part of the condo purchase, or are the spaces sold separately to those owners who want them? Are there enough spaces to go around, or will the scramble for scarce spots trigger daily melodramas in the parking lot?
You should ask similar questions about any amenities offered with a condo. The first question is, do you want or need the amenities you’ll be paying for? If you’re not going to swim, you might be better off with a lower-priced unit in a development that doesn’t have a swimming pool. On the other hand, if it’s the availability of the swimming pool and tennis courts that most appeals to you, take a good look at those faciJities in relation to the number of people likely to be using them. How much of an attraction can those two tennis courts be for you if there are always thirty people waiting to use them? As you explore different condos, remember that in addition to buying a unit, you’ll also be acquiring an interest in the common areas as well. Pay as much attention to the areas outside of your unit as you do to the unit itself. If you’re looking at a newly constructed condominium or a newly renovated one, pay particular attention to the quality of the workmanship and the quality of the construction details. That will give you some idea of the care — or lack of care — that the developer has put into the project. But don’t be so snowed by the brass doorknobs on the entryway or the Jacuzzi in the bathroom that you overlook the things that really matter — the condition of the heating and cooling systems, for example, or the age of the building’s roof.
The condition of the buildthg’s infrastructure is important to you, and you’ll definitely want to hire a qualified home inspector or structural engineer to inspect the building before you buy
it. You’ll want him to look at the common areas as well as at your individual unit. If the roof is going to have to be replaced or if the heating system is on its last legs, it’s better to find that out before you decide to buy rather than a month after you move in.
February 08, 2010
