This is the seventh installment in our video blog series on Questions to Ask Before Buying a Condo in Andover and beyond. If you’re thinking about buying a condo in Andover or anywhere in Massachusetts, you’ll want to be informed on every aspect of the property before you purchase it. It’s important that you know just the right questions to ask to uncover any issues before you buy.
How many condo units are owner occupied?
How many unit owners are actually living in their condo and not renting it out?
This is a critical question to ask because:
- If your buing in a condo complex that has a very high rental occupancy, do you really want to live where there are alot of renters?
- It may be difficult to obtain a loan if there is a high level of renters in the condo complex.
What determines a high level of rental units?
That number has been changing based on lending guidelines, so to find out what the current number is you’ll want to talk to your lender. I find that in the larger condo complexes of 20 units or more, personally I think less than 20% rental units is a good number to go by. As you get beyond 20% the complex might take on a different feel, you might see less care of the property by the renters, and could also make it more difficult to sell in the future.
More Questions to Ask Before Buying a Condo:
1. What is the Condo Fee & What Does it Cover?
2. What are the Condo Rules & Regulations?
3. How Much Money is in the Reserve Account and How Much is Funded Annually?
4. Are There Any Pending Special Assessments?
5. Who Manages the Condo Complex?
6. Is the Condo Association Involved in Any Pending Legal Actions?
7. How Many Condo Units are Owner Occupied?
8. How Many Condo Units are Delinquent on Paying Their Condo Fee?
9. Do Condo Unit Owners Have Exclusive Easements or Right to Use Certain Common Areas?
10. What does the Condominium Complex’s Master Insurance Policy cover?
For over 30 years the Prime Property Team and Ron Carpenito of Keller Williams Realty Andover have been helping home buyers and sellers in Andover, North Andover, Haverhill, and the Merrimack Valley with their real estate goals. If you’re thinking of buying or selling a home anywhere in Massachusetts or know someone who is, contact Ron today at (978)494-0346.
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