Questions to Ask When you buy a Condominium

Buying a condominium is a vastly different experience than purchasing a family home. This is even truer buying any type of real estate in South Florida if you’re unfamiliar with our sunny paradise.

The process behind each purchase is fundamentally different, so it is important that you ask the right questions to avoid any unpleasantness concerning the experience.

Here are a few things that Steven Vargas, realtor for luxury condominiums in Miami recommends you ask before your closing:

Does the facility require any special assessments?

A special assessment is essentially a one-time fee that a condominium association will impose in the event of unanticipated expenses. These can include major replacements, repairs, or renovations.

A special assessment is a rare occurrence in new buildings. However, in a building that is 15 years old or older, the roof may need replacing, or a pool resurfaced, etc. A seller is obligated to disclose any assessments to the buyer when they enter their contract.

Nonetheless, we recommend speaking with the property manager before you make an offer in order to factor in this pertinent information when you offer your price.

A special assessment does not represent a deal-breaker in most cases, but you can negotiate with the seller on many possibilities. Perhaps the seller will pay for all or some of the special assessment during the closing procedure.

Whenever you shop for a unit in a building that is 10 years old or older, we additionally recommend that you determine if the property wields a reserve account. This account acts as basically a savings account. It holds funds that the association sets aside to pay for repairs and other involvements on the building.

The service account is intended to prevent or offset the costs that would otherwise display in the special assessment. If the condominium you choose has not regularly kept up with repairs, a special assessment’s presence in a contract is virtually guaranteed.

Is the association fee too exorbitant?

A condominium association fee, or maintenance fee, is what the association utilizes to operate as well as manage the facility. These fees usually cover insuring the building’s exterior, paying staff salaries, maintaining and operating additional amenities.

The association fee also will cover utilities. While these utilities include those necessary for building operation, this additionally means water, sewer, and trash removal for each unit. The association might also set aside a fee portion for the reserve account.

A tenant will usually pay these fees on a monthly or quarterly basis. In Miami, the fee amount per owner is determined by calculating the amount of budgetary expenses based on square footage.

Condominium association fees can also change from time to time. For this reason, it is important to double check with the property manager. This will help you ensure that the MLS listing is up-to-date concerning the fees. Before you sign, remember to ask about any possible increases or decreases in the fee amount.

Should I hire an inspector for the condominium unit?

Most times, a condominium inspection reveals no major cause for concern. Nonetheless, we recommend that you get one done anyway. In the grand scheme of it all, a condominium property inspection is a small price to pay.

You will certainly want reassurance that the air conditioning and all other appliances function properly. However, it is important to remember that the standard inspection is not accompanied by a mold inspection.

You can counteract this by making your own visual inspection. Take a look at the ceilings and keep an eye out for water stains. Check the closets as well. Although water stains do not necessarily indicate mold, if you find them, get an additional inspection done just in case. The mold inspection will obviously cost extra, but in the long run, will save you a lot of money.

Does the condominium association impose any restrictions?

A condominium association is well within their rights to implement restrictions on facility tenants. The two most common restriction types are pet, in addition to lease restrictions.

A lease restriction is normally when the association limits the number of times per year that an owner can lease their unit. They may also restrict the duration length for each lease. This policy prevents elevator congestion from people moving in and out of the building.

Contrarily, most condominium investors welcome these restrictions regarding lease terms. This helps them maximize their revenue. The majority of condominium associations in Miami require at least a minimum rental period of 3 to 6 months.

Concerning pet restrictions, most condominium associations will vote to allow pets. A common solution is that owners can possess pets in their units, but not renters. The debatable logic behind this is the perception that owners impart more respect for the property than renters.

Steven Vargas – Realtor for Luxury Condos in Miami

Steven Vargas is a realtor for luxury condos in Miami who helps potential property buyers throughout South Florida. He was born and raised in the Miami area, and currently lives in the downtown area.

For this reason, when buyers seek out Steven’s services and he makes a recommendation, they know it comes from a place of experience and truth. This unique insight makes Steven an ideal resource for anyone looking for real estate in the South Florida area.

For more information on our realtor for luxury condos in Miami, contact Steven Vargas today. Buying or selling, you can find out precisely why he is such a viable option for your real estate needs!