If you are in the market to purchase a condo, today’s blog post is one you do not want to miss! At Jerry Pinkas Real Estate Experts we have helped countless individuals, couples, families, and retirees purchase a condo here in sunny Myrtle Beach, SC, and have seen just about every situation you could image unfold. We understand the excitement, as well as the struggles and pitfalls, that can accompany the purchase of a new condo, which is why we wanted to bring you this blog today. We want to help you avoid those mistakes that can be costly and extremely frustrating when purchasing a condo in hopes to make it a smooth and successful buying process for you. If you want to learn about potential pitfalls and things to be aware of when buying a condo, keep reading below.
What mistakes should I watch out for when purchasing a condo?
Here at Jerry Pinkas Real Estate Experts we understand why condos are so appealing to people, especially millennials and seniors who are retiring, so this information really spans and relates to all age ranges. The first thing we want to bring to light when purchasing a condo is making sure that you are using the right lender, as they will help you to review any litigations and homeowner’s documents on your behalf. Why would the lender be interested in this you ask? Well, the same way you would not want to get involved with a risky property, they equally do not want to loan you money on a project that is going to get them in trouble either. So using the right lender is definitely a bonus on your part as they will help to ensure the value of the investment.
Next, make sure to review certain aspects of the Homeowner’s Association such as their budget, if they have reserves (and if so how much), if they have money in the bank, are they are losing money and if the HOA has any pending litigations against them. These are all very important things to know. You can also take a look at the meeting minutes, as well as inquire about any pending projects that are outstanding. You may also want to ask about the stability and turn over rates within the HOA as that can be a potential red flag.
As far as the building itself goes, there are certain areas that you will want to inquire about. And this is a good time for us to point out that having the right real estate agent by your side will certainly help in making sure all the right questions get asked, as well as making sure that all the questions get answered and nothing is left unsaid. Especially when it comes to the condo questionnaire, you will want to make sure that everything is filled out properly to avoid any potential complications and headaches. You will want to inquire about any timeshare units in the building, how the commercial space (if any) associated with the property is set up, who make up the homeowner’s association and making sure that the HOA and the rental company are separate entities. You will also want to see if there are any structural issues to take note of such as mold, leaking roof – things of that nature. These are all things you want to know and fully understand before you get involved with a condo building.
What is the difference between a condotel and a condo?
There are a few main differences that are important to note when it comes to condotels and condos. When you think of condotels, image hotel units that are being sold to individual buyers but continue to operate with many of the same features as a hotel. For example, condotels offer many of amenities that people know and love about traditional hotels such as on-site restaurants, lounges, front desk check-in and gift shops. Additionally, the condotel units are usually sold furnished, so that takes some pressure off the buyer to have to purchase additional furniture. The owner is able to use the condotel whenever they wish, and the unit can also be rented out nightly or for extended stays during vacant times through a rental program. A large benefit of condotels is that, in many cases, they are rented, maintained and cleaned by the hotel management, or you can opt for an off-site management company to take care of this for you. Either way, you can expect the unit to be tended to in your absence.
On the flip side, in a traditional condo, the owners are responsible for everything listed above including in home security, maintenance, and housekeeping, and the units are typically sold unfurnished. If you are a long distance owner of the condo, you can imagine how this reality can present some difficulties, especially if you are looking to rent the unit out when you are not using it. You can hire a company to clean the unit after each rental stay, so there are definitely ways to make everything work and be profitable. It is also important to note that rental options in a condo usually require more than one nights stay, and the on-site amenities, such as the gym and pool, tend to be limited.
What are the benefits of buying a condo versus a detached home?
There are many benefits to owning a condo, as well as a detached home, depending on what you are looking for. One of the main benefits that many people enjoy in condo living are the amenities. Many condo buildings have resort style amenities including spa-like fitness centers and pools, and these features may be too costly if you have to incorporate them into your own home. Additionally, condos are more convenient and tend to be more low-maintenance which is great if you live a busier lifestyle. Much of the maintenance of the building is covered in association fees, so the only thing to really worry about is the interior of your specific unit.
One of the main reasons that people look to purchase a condo versus a detached home, simply put, is the price. Condos tend to be much less inexpensive which is great if you are a first time home buyer or are looking to purchase a second home or investment property. The barrier to entry when purchasing a condo is lower, and therefore more attainable for a lot of people. And since there has been a large influx of retirees to Myrtle Beach, and many are on a strict set income each month, having the lower bills of a condo is much more appealing.
What should I do if I am interested in buying a condo in Myrtle Beach, SC?
After all the information we covered above, it is clear to see that there is a lot that goes into buying a condo. And while it should be a fun and exciting time, you want to make sure you have the right people in your corner working for you to ensure that you avoid the pitfalls that can be costly, frustrating and a huge waste of time. Our experienced team here at Jerry Pinkas Real Estate Experts have helped numerous individuals, couples and families find their perfect condo here in beautiful Myrtle Beach, SC, and we know we can do the same for you. Give us a call today and let us walk you through the buying process, understand your wants and needs in a condo and show you listings that meet your desired criteria. This is what we do, we do it every day and we are good at it. Why have average when you can have the best? We look forward to hearing from and working with you soon!
You have questions, and we have the answers. Give us a call at 843-839-9870.
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