Are you planning to buy a Downtown condo?
No doubt there is a great living experience living in a condo in Downtown, Austin.
But, you should know that there are many complexities in buying a condo for yourself or for your loved ones. That’s why I have combined the four most common mistakes mostly people make while buying a Downtown condo. I have made this list and combined them in this article so others can get benefit from those mistakes and they should avoid them when they are buying a condo in Downtown Austin.
So, let’s come towards the point without talking on other stuff too much! J
Mistake 1: Don’t know that the Condo’s HOA is currently involved in any lawsuits
In the past years, there are a couple of Downtown Austin towers which are mired in lawsuits. Lenders mostly ignore the frivolous lawsuits with just a letter from the House-Owners Association attorney. Some lenders decline loan if the outcome of the lawsuit is uncertain. It’s common for both listing and buyers agents to not know about if a tower is involved in a lawsuit or not, but you should not OVERLOOK this.
Here is a complete Article about: 360 Condominiums Floor Plan and Condos for Sale
If a lender discovers an HOA lawsuit after your contract option or financing contingency has expired, then you may have just lost your earnest money.
Mistake 2: Buying a new Condo requires some extra due-diligence from your attorney or REALTOR
Remember one thing, it can be very exciting to think about getting a never-lived-in condo but it is possible that the tower will never get built or it will go late than the schedule or the dead line. Once, you commit the money, it will be a really tuff job to get it back even if the building never get built.
Amidst the economic bust of 2008, many buyers eager to take possession of their new home instead lost tens-of-thousands of dollars of their earnest money because those buyers did not fully understand what they were signing, on top of false promises made by the building’s sales team. Ignorance is costly!
There are some questions you must talk about with your agent or the building marketing staff:
- What will be your plan if the building will not get delivered on time?
- Will you prohibit me from selling my condo for some specific period of time, after I move-in?
- Am I purchasing a standard residence, or one of the limited “investor friendly” residencies?
This can be really expensive mistake if you don’t ask the right questions…
So always know what is most important to ASK!
Mistake 3: Don’t know if the HOA rules include the lease restrictions:
Being a Downtown Austin Condo’s expert, we are seeing more trends to crackdown on leasing. Most Downtown Austin Tower’s HOA’s restrict the duration of leases to a minimum of 6 to 12 months.
Note: There are also some HOA’s who restrict that more than 25% of the building to be leased out. So beware!
For some, it sounds good and off course it is, if you are a person who is willing to live in that condo for years and years.
But, If you are one of those who tend to move into some other property but don’t want to sell the current condo too. Then, you have to stand in the waiting list for a vacant unit to be available.
Restrictions on buildings (If there are any) will vary from building to building, so make sure you always have the correct information of that building.
Mistake 4: Not Knowing Exactly what the HOA Fee covers:
Every Building’s HOA have their own fee and their own list of things they are covering. So before expecting anything to be covered in the HOA fee, you have to know about it.
It is possible that you are expecting a basic internet and cable in that building but their HOA fee is not covering that.
So it is recommended that you make a list of what things are covered in the HOA fee of that building, if you are comparing or planning to purchase a condo in a tower.
In Austin Downtown Condos, HOA fees are mostly assessed on monthly basis and typically include:
- Common Area Maintenance
- Common area/building insurance
- Trash pickup
- Waste water
- HOA and building management
These are the common mistakes we have noticed that mostly people make while purchasing a Downtown Austin condo, so we have stated them in this article for you. So, you can make the best and successful deal without losing your money.
But, at the end I personally recommend you to hire a professional realtor agent which was expert in downtown condos in-order to make the best possible deal.
We are an agency specialized in Downtown Austin condos so, we can help you the best!