Condominium purchases are slightly different from single family property purchases.  There is usually more information to evaluate. This blog offers condo buying tips for Franklin TN home buyers.

Definition of a Condo

Condos are developments with multiple units with shared common areas such as land and amenities. The exterior are part of the association and every unit maintains a percentage interest. The exact amount is commonly based on the unit size and the total units in a complex. Unit owners are financially responsible for repair of unit interiors but divide the expense of common elements such as siding and roofing. Due to the shared elements and expenditures, it is essential for Franklin TN buyers to obtain specific paperwork prior to purchasing condos.

Things to Ask About

Mortgage Restrictions

Not all financing programs may be used for certain condos. For instance, FHA requires minimum owner occupancy rates, monetary reserves, and several other conditions. Complexes that are not FHA approved will be not an option for certain buyers on the market. Buyers wishing to use FHA must determine whether a condo is approved before spending too much effort evaluating units there.

Rental Rates

Some complexes have some units rented. Owner occupancy is a critical factor when it comes to financing. Owners also tend to take better care of their units.

Monthly Fees and Reserves

Most condo complexes assess recurring fees. They help care for common areas. An amount is also set aside into a reserve account to prepare for planned expenses. It is critical for buyers to ask the exact condo fee, what it covers, the history of increases, and if it is expected to increase again. Home buyers should also question how much is already saved in reserve. If an association does not have enough to pay for a significant repair, the required amount is shared among the condo owners. This is called an assessment and may be a large amount even if spread across the unit owners.

Rules and Regulations

The major difference between single family and condo homes has to do with restrictions. It is critical to obtain these rules and regulations ahead of time and decide if you can accept them. Rules can cover both common spaces and unit interiors.

Condo Buying Tips For Franklin TN Home Buyers

Buying any type of property will require some research, but there are a few more things to evaluate for condos. Be sure to assess all documentation and get help from a real estate lawyer for advice, if needed. Additionally, consider the future market value of units based on its financial condition and home loan qualification. All of this helps you make an informed conclusion about your condo investment.

This article on condo buying tips for Franklin TN home buyers was offered by Jim Eaton at Blueprint Realty, Inc.

 

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