Buying a resale condo can be a lot like choosing a new restaurant to try. What factors do you prioritize? Whose opinion matters most? Are your expectations reasonable?

Essentially — you’re taking a gamble in the hopes that it pays off down the line…only, the consequences could be far more severe than having to sit through a lackluster meal when your finances are on the line.

So — how can you ensure you’re making the right resale investment in your next condo purchase? Today, we’re breaking down the most important questions to ask, tips to know, and traps to steer clear of — so you can maximize the return on your latest resale investment without looking back.

#1 Factor In Condo Fees:

When you buy a resale condo, you’re responsible for paying monthly condo fees. Also known as maintenance fees, these fees are payable to the Homeowners Association (HOA) in the United States.

Condo fees are a defining factor of the condo lifestyle and a significant part of your monthly budget. But do you know what these fees actually cover?

In some condos, they cover every aspect of maintenance up to the walls in your unit. In other buildings, a broken window is your responsibility. In other words: do your research! Not sure where to start?

You can find relevant information in two places: the MLS listing as well as the condo documentation, which will both show what repairs and maintenance are covered by condo fees.

#2 Research The Building’s Amenities:

Access to building amenities isn’t just a perk — it’s closely related to the issue of condo fees.

These days, the condo lifestyle everyone covets is about more than location; it’s about having access to amenities such as gyms, swimming pools, and business centers (to name just a few).

Condo fees cover the cleaning, maintenance, and management of these amenities. That’s why before placing an offer on a resale condo, it’s important to know what you’re getting for your money. Some buildings, for example, may have dedicated fitness centers and entertainment spaces. Other will scale back or eliminate amenities entirely in exchange for lower monthly fees.

#3 Read The Rules:

The condo lifestyle is attractive for many reasons, one of them being the allure of community living.

This lifestyle gives you access to a more central location and better amenities than you could afford by going it alone. However, it also comes with a few restrictions, including the need to abide by certain rules and regulations crafted to ensure that all condo residents get to enjoy their units in peace.

Before you make a short list, it’s important to research and compare the rules and regulations of each potential building.

#4 Evaluate The Financial & Legal State:

Each condo building and community has its own unique history and present day challenges. Some are in healthy condition, while others are on the brink of bankruptcy.

Before you decide on going through with a condo purchase, it’s critical you go over the financial and legal status.

When placing an offer, include an agreement of purchase that lets you review the documentation. From there, your lawyer and Realtor will be able to help you determine if the building is in healthy, upstanding condition.

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#5 Take Care With Complaints:

It can be almost impossible to get an accurate feeling for a condo building until you move in.

Unfortunately, you won’t be able to rent a room for a night and get some experience on the ground. Still, there are a few different ways you can get the experience and discover issues before you make things official:

• Speak with the neighbors; unhappy residents will be quick to give you an earful.
• Review the annual general meeting minutes. Here you’ll find if issues were brought up and whether or not they were addressed.

#6 Take Stock Of Your Long-Term Needs:

As one of the biggest purchases you’re ever likely to make, buying a resale condo is a serious and long-term decision. Before choosing which to buy, here are a few long-term considerations you should take into account:

• If you change jobs, will the condo’s location affect your commute time?
• Will the condo mortgage payments affect your financial independence?
• Does condo life meet your lifestyle needs?
• Are you planning on having children soon? If so are you willing to raise a family in a condo?

#7 Analyze The Potential For Resale:

This one probably goes without saying but…there are lots of factors to consider when buying a condo, but its resale value is perhaps the most crucial matter of them all. In other words? The condo you buy today could have a big impact on your future finances. Here are three factors to evaluate:

• How much equity you can build via mortgage payments.
• Market appreciation.
• How easily the condo will sell years down the road.

To gauge if a condo will resell well, when in doubt, always consider the golden rule of real estate: location, location, location.

➤ Ready to start your search? Check out our latest lineup of condos just waiting to be discovered.

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