Red flags when buying a condo?

Question

I just got preapproved today (yay!) so now we're seriously shopping for a place. However, I'm noticing some patterns that are quite disturbing, like 4-5 units in the same building being sold at once, or the same units for sale for a long period of time. Is this a red flag and should i stay away? What else should I be looking for? For example, condos built in certain years? What questions should i be asking?

what examples of reasons would there be for multiple condos for sale in the same building?

Answer 1

The thing with the condo market is that in the last 2-3 years, it became a speculative mkt and what you are seeing are units acquired for rental income i.e. the owners had no intention of living there. If you are looking for a primary residence, the rising inventory of condo units should not really worry you since you are not a speculator.....in fact, this may turn out to be to your advantage since you can negotiate down the price giving the downturn....

In terms of what you should look for in a condo intended to be owner occupied:

1/ Condo dues/fees....make sure you know how much, how it is paid and exactly what it covers.
2/ Amenities....is there an additional charge etc?
3/ Security - you can ask on how many condos have been burgaled and what type/level of secuirty is offered.
4/ Condition of the unit....speaks for itself.

Answer 2

Find out the monthly maintenance fee and what it includes; If the condo is in the city, do you have deeded parking? If so, how many spaces. Most condos don't have much storage. This can be a problem so check it out
Can you hook up a satellite dish (if you want one) or is there a communal cable hook up?
Are there major repairs due on the condo? You may get hit with a surchardge to replace the roof, etc.
Are pets allowed? If so, which ones
Also, drive around the area. The condo may be nice but it might border a bad area which may be why people are leaving.

Answer 3

I wouldn't be too concerned with multiple sales in the same building. You'll often see that with the condo market and you should also consider that more people are considering selling right now with the market softening up a bit. (this might play out well for you by the way)
Your best bit of advice is simply striking up some conversation with owners of the building in question. "How do you like living here?".."I noticed some for sale signs...are a lot of people moving lately?" "How long have you lived here?" etc
These are basic questions but if there are any real issues you'll be sure to get them from residents. Lastly, when asking introduce yourself as someone who is considering moving in...People usually don't want to come off like jerks with a potentially new neighbor and will be more honest with you if you let them know your intent.

Answer 4

I assume condos are like attached townhouses.

Yes red flags seem to be all over that situation so stay away.
having lived in a condo prior to buying a house a good rule is when the majority of persons are renters stay away. You can easily tell by looking at the landscaping, renters don't usually care for the exterior or interior for that matter.
Ask what the percentage of owners there are,
When the roof was last replaced
Condo fees if any
Number of owners of that unit in the past


good luck

Answer 5

When I saw the question I was going to mention the multiple units for sale, but you already know that! Look them in the eye and ask why they are selling. Come to think of it,maybe you can just go door to door on the multiple units and get them going on a serious bidding war.

Answer 6

the housing market is slowing down and condos are usually hit first, the prices of condos may be too high for the market at the moment but too own your own place is still better than renting, good luck and yeah for you!

Answer 7

make sure the hoa is not in litigation.