Archive for October 2021

Has the idea of buying a condominium crossed your mind?  There is a lot to like about condo living, including reduced maintenance obligations and ample amenities.  However, living with increased regulations and being close to neighbors may not be suitable for you.  Make sure to carefully consider all the pros and cons of buying a condo and how they fit into your lifestyle.

What is a condominium?

A condo is a private residence within a larger community.  It is like an apartment, except you own the unit instead of renting it, and you can renovate or customize your space. There are typically multiple units on each floor, and you may have neighbors above, below, or next to you.  There also may be shared areas and amenities, including swimming pools, lounge areas, roof decks, and fitness centers.

The pros of buying a condominium 

Several benefits appeal to a wide range of homebuyers when it comes to condos. They give empty-nesters the freedom to travel without the concerns of home security, and condos allow first-time homebuyers to own property at a lower cost than a single-family home and build equity.

Less upkeep

A single-family home requires plenty of maintenance to keep it looking great, but a condo has many of these responsibilities covered. Most condos have a homeowners association (HOA) that’s responsible for exterior maintenance like mowing the grass and snow removal, along with upkeep of the roof, building exteriors, amenities, and shared spaces. This means you’ll have to spend less time and effort on making the property look great.

Affordability

A report by the National Association of REALTORS® found that the average condo price is more than $50,000 cheaper than a single-family home.  Additionally, condo insurance is typically much less expensive than homeowners insurance because you’re paying for coverage of a smaller space, and you do not need insurance for the outside of your condo.

Amenities

Having facilities like a fitness center or roof deck provides luxuries you may not be able to afford in a stand-alone house.  These amenities can be a great way to get to know your neighbors and create lasting friendships.  In addition to a roof deck or lounge, many condo communities hold events like game nights and barbecues, which are great opportunities to socialize.

Security

A condo community typically has a level of security you won’t find in a single-family home, such as a doorman to watch out for any emergencies.  Additionally, having neighbors close by can provide an unofficial level of security when you’re away.

The cons of buying a condominium

While condos will appeal to a handful of people, it just isn’t the best option for others. Make sure to consider these points before buying a condominium.

Common Charges

All the perks of having the additional amenities and fewer maintenance responsibilities come at a price in the form of fees. When you buy a condo, you’ll likely have to pay monthly common charges on top of your mortgage and insurance costs. This money goes toward the upkeep of the community’s shared spaces and exterior. You may also have to pay an additional fee to use some of the amenities.  However, you can sometimes opt-out if you won’t be using them.

Condominium Association Rules

In addition to the fees, the condominium can have a list of rules you must abide by.  These will vary from community to community and may include the number of visitors you may have at one time, the type of pets you can have, or how you can decorate an area like your terrace, which can be a little overbearing for some potential homebuyers.  Before agreeing to buy a condo, make sure to review the condominium’s governing documents, and consider how any monthly fees or rules will affect your life.

Lack of privacy

Being in closer confines does mean you’ll sacrifice a level of privacy in a condo. Sharing walls with neighbors on both sides of your condo, and potentially above or below you, means you may hear increased noise. Fellow condo owners may be outside or in the hallway late at night or in the early morning. Likewise, your neighbors may not be receptive to you entertaining guests or playing music.

Resale market

You may have a limited market to appeal to if you plan to resell your condo in the future.  For example, a growing family with pets may find the space restrictive and want a house with a private yard.  Others may not feel comfortable with the condominium’s regulations.  If you’re considering buying a condo, it’s beneficial to speak to your real estate agent about the unit’s potential resale value and any other factors that could play a part in determining that value.

Before you buy a condominium, make sure to consider these factors in your decision.

Filed under: Blog, Brooklyn, Buying, Common Charges, Condominium, Douglas Elliman Real Estate, Home Buyer, Home Value, Investing, Real Estate, Real Estate Tips, Selling, Uncategorized by Ryan Roberts
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An appraisal is a critical part of the homebuying process, as it determines the value of the property before a lender agrees to move through with a mortgage.  But how is this value calculated? Check out this list of seven factors that impact the value of a home during an appraisal.

Condition of the home

First, the appraiser will note some of the general details of the home, ranging from the materials used throughout the house to the property’s overall condition.  If anything is unsound or unsafe inside the home, the appraiser will make a note of it.  From broken appliances to missing shingles, signs of deferred maintenance may negatively impact the home’s value.  Appraisers will also look for signs of infestations.  Upgrades to features like the electrical system, roof, or windows, could positively impact the home’s value.

Age of the home

The appraiser will consider the age of the home when calculating its value.  However, you shouldn’t expect a newer home to receive a higher value than an older home due to its age.  While new homes will likely have fewer issues when it comes to maintenance, well-maintained older homes located in historic districts tend to have a higher appraisal value.

Size

The amount of living space inside a home will influence the property’s overall value, and a larger home will typically be worth more than a smaller home in the same market.  Appraisers will account for the square footage, along with the number of bedrooms and bathrooms.  Additionally, storage space will also be a factor, as large closets, along with a useable attic and basement, will help a house appraise at a higher value.

Location

A home’s location could impact its value based on several factors, including crime rate, school district, road maintenance, and the distance between the house and schools, hospitals, fire stations, and police stations.  If the home is next to an undesirable neighboring property, like a landfill, its value may be lower.  Also, the home’s location within the community may affect the value.  If the house is on a quiet street, it may be worth more than a home on a busy road in the same neighborhood.

Renovations

If a home has received upgrades since its last appraisal, renovations like a new garage or kitchen makeover can impact its value.  Even more practical upgrades, like a new roof and energy-efficient appliances, can increase the home’s value.

Filed under: Appraisal, Blog, Brooklyn, Buying, Contractor, Home Buyer, Home Value, Investing, Mortgage, Real Estate, Real Estate Tips, Renovations, Selling by Ryan Roberts
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