If you’re going be writing offers on condos or purchasing a condo here are some things to consider:

1. Have your loan officer or real estate agent contact their title rep to get a verbal title search done, not only can you find out if the deal is an undisclosed short sale you can also find out if there are any Lis Pendens, Bankruptcy, Foreclosure filings (notice of default or notice of sale), Cloud on Title, and/or litigation. Most experienced agents know if a complex has any pending litigation but you are always going to want to verify this. Why? Pending litigation can affect your financing, insurance and resale value. After you have an accepted offer your lender or escrow will order the full preliminary title report. There are however a two lenders out there that will provide financing on condos in litigation. (Contact us for more details)

2. Order the Home Owners Association (HOA) Docs. Most associations you can get through www.condocerts.com

3. See if the complex is FHA approved this can help with resale value. Search HUD’s site here: https://entp.hud.gov/idapp/html/condo1.cfm

4. Spend the extra $300~ to get an inspection done in addition to the appraisal (especially in older complexes or ones with construction defect problems)

5. As with any home purchase make sure you are buying it at the right price and that it is a good investment in addition to a good property to live in. If you were going to rent it out in the future would the rent cover your payment (including your HOA fee)? What would the cap-rate be? What would your monthly cashflow be? What would your ROI be? What are the tax benefits?

6. Upon closing make sure you get a interior insurance policy (what happens if your upstairs neighbor accidentally leaves their bathtub running?)

Purchasing real estate is all about dealing with professionals and performing the proper due diligence. If you are concerned about the noise of a certain complex or if you will be moving into a college dorm or not; search online or hang around and ask people that are currently living in the complex. The more educated and informed you are the more likely you are to make a better purchase.