Buying a condo is a big investment that requires patience and careful planning. If you rush the process, you risk making mistakes like overpaying for a low-standard property and regretting your decision.
How do you avoid making these errors? By identifying the common mistakes buyers make every day.
We’ll explore five usual mishaps to avoid when buying a condo to help you protect your investment and get your money’s worth.
1. Not Getting Pre-approved for a Mortgage
A mortgage pre-approval lets you know how much you can afford to spend on a condo and what your monthly payments will be. It also shows sellers that you are a serious buyer and that you are likely to qualify for a loan.
Some buyers are eager to start looking at condos and making an offer, while others may be worried that they won’t qualify for a mortgage. They may not want to waste their time or the lender’s time. But without pre-approval, sellers won’t take you seriously, or you may be forced to accept a mortgage with a higher interest rate or less favorable terms.
Simply contact a lender and start the pre-approval process early in your condo-buying journey. The process is quick and easy, and it gives you peace of mind knowing that you are likely to qualify.
2. Failing to Get the Condo Inspected Before Buying
A condo inspection is a checkup of the unit’s systems and parts that are easy to reach. It’s performed by a qualified inspector to identify any potential problems with the unit, like structural issues, plumbing leaks, electrical hazards, and mold.
Some people believe that an inspection isn’t necessary because the condo association is responsible for maintenance. But in reality, the condo association isn’t responsible for the interior of individual units. Others just want to own a unit too quickly and disregard the risk of hidden problems like water damage, electrical hazards, structural problems, and pests.
To get your condo inspected, hire a qualified inspector experienced in inspecting condos. You can ask your real estate agent for recommendations or by searching online.
3. Overpaying for the Condo
Buyers may fall in love with a particular condo and overpay for it, either because it has all their desired features or is in a desirable location. Overpaying may lead to financial strain, especially if you’re also taking on a mortgage. And if you decide to sell in the future, you may struggle to find a buyer willing to pay the same price that they paid. The market can fluctuate, and prices may drop.
Before you make an offer on a condo, do your research to find out what a fair price is. You can look at comparable condos that have sold recently in the same area. You can also get a pre-approval from a lender to know how much money you can borrow and afford to spend on a condo.
4. Going In Blind and Unwilling to Negotiate
Negotiating the price of a condo can save you a lot of money. In some cases, you can negotiate the price down by 5% or more, sparing you tens of thousands of dollars on the purchase price.
Many people are unfamiliar with the condo-buying process and don’t realize they can negotiate. They may also be afraid of negotiating or think it’s rude. People buying a condo in a competitive market may also feel pressured to make an offer quickly without taking the time to negotiate. But making these mistakes means you risk overpaying or getting stuck with a condo that doesn’t meet your needs.
5. Not Getting Everything in Writing
It’s important to get everything in writing when buying a condo. This way, you have a record of what you and the seller agreed on. If you don’t take down everything, you’ll struggle to resolve disputes that arise after the sale. For instance, if the seller promised to make repairs t before closing but didn’t, you may have difficulty getting them to do so after moving in. It’s also a good idea to have a real estate attorney review the purchase agreement before you sign it.
Own a Condo Today
There are many other mistakes you can make when buying a condo, so you need to do your research before diving into the market. With the proper knowledge, you’ll make informed decisions that will keep you happy for years. If you’re looking for a condo for sale Mandaluyong, reach out to us today for more information.