Real Estate

I always thought that saying you live in a condo was just a pretentious way of letting people know you live in an apartment.

Well, it turns out I was wrong!

When you rent an apartment, a corporation owns the complex and leases out units to individual tenants. Condos, on the other hand, are owned by people and leased out to tenants.

Additionally, condominium communities are also usually managed by a homeowners association, also commonly known as an HOA.

If you’re considering buying a condo vs. renting a condo, you need to first ask yourself, is a homeowner association is right for you or not!

In this article you’re going to learn about HOAs, learn the benefits of buying a condo vs. renting a condo, and also find out what other important questions to ask yourself before deciding!

More About Homeowner Associations (HOAs)

When you purchase a condo, house, or townhouse that is part of a planned development such as leased land or a gated community, you are required to join that community’s homeowners’ association. The HOA is responsible for the upkeep of common areas and owners are responsible for paying their HOA fees each month.

Condo HOA fees can vary from a couple hundred dollars a month up to a few thousand, depending on your location and what’s included in the HOA. The more amenities and the more upscale a building, the higher the monthly HOA fees.

Condo complexes can have a range of amenities — some are typical amenities and others are quite lavish. From hammocks to lap pools, outdoor kitchens, rooftop terraces, club houses, outdoor movie theaters and much more, you get what you pay for when it comes to condo HOAs.

Condo owners share the costs of maintaining common areas such as parking decks, laundry facilities, fitness centers, hallways, stairwells, and storage rooms, as well as mechanical systems like plumbing, electric, gas, heating, and cooling.

Exterior maintenance is often part of HOA fees as well. Landscaping, window cleaning, pool maintenance, gates, and seasonal expenses like snow removal, gutter cleaning, and winterizing are part of the owners’ monthly HOA dues.

Condo HOA fees also generally include things such as security, limited insurance, some utilities, and a reserve fund for things that come up once in a blue moon, like hallway and flooring redesign, replacing water heaters, re-roofing, or repaving.

Knowing if you should rent or purchase a condo is as difficult of a decision as knowing whether to rent or buy a home.

Whether you are searching condos for sale or condos for rent, there are benefits to being both an owner and a tenant, and it all boils down to your specific situation.

Benefits Of Buying A Condo VS. Renting A Condo

As with everything in life, each thing has its positives and its negatives. It is no different when it comes to either buying a condo vs. renting a condo.

When you purchase a house or condo, you are the “owner” (and I put it in quotes because the bank is really the owner, if you purchase using a mortgage, until you finish paying off the mortgage). You are investing in real estate, and if all goes well when you decide to move, you will get a return on your investment.

The opportunity to build equity and get a solid return on your investment is one of the top benefits of owning a condo!

As a tenant, you pay the owner a set amount each month, and when the lease expires, you leave with only the stuff you brought with you.

The fact that, as a renter, you are not investing your money makes many people feel as if renting is merely throwing away money. While it is true that renters only walk away with what they brought in, they do not have the same level of responsibility for the property as the owner.

Property owners need to worry about mortgage payments, maintenance costs, assessments, taxes, and fluctuating interest rates. Renters have the privilege of living in their home at a set monthly price without the sometimes unpredictable financial burdens of condo ownership.

If you are debating between buying a condo vs. renting a condo, below are a few questions to ask yourself to help make an informed decision decision.

How Long Do You Plan On Living In The Condo?

Real estate agents often suggest five years as the length of time that individuals ought to live in a home or condo before selling it.

If you intend on living in the same home for several years, gearing your condo search toward “condos for sale” might be your best bet.

Real estate tends to appreciate over time, and the amount of equity in the property increases when monthly mortgage payments reduce the principal amount of the mortgage.

On the other hand, if you are only going to be in town for a year or two, all of the upfront costs associated with purchasing a condo might just not be worth it, and renting a condo might be your best option.

How Much Maintenance Are You Willing To Deal With?

When you own a condo, you are responsible for fixing anything the breaks inside your condo. If the refrigerator breaks, you have to cough up the money.

Depending upon your condo community, you may be responsible for replacing damaged or poorly sealed windows. Some condo declarations call windows part of common elements yet others call them part of the unit.

The whole point is that if you own the unit, you are financially responsible for anything that goes wrong or needs replacing. If you are just renting, just notify the owner that something is broken, and they have to fix it.

Can You Handle Someone Telling You How You Can Decorate Your Home?

If you are the type of person who doesn’t like anyone telling you what to do, searching for condos for sale in your area might be the best bet. If you are renting, you will have to live by both the owner’s rules and the condo association’s rules.

Do You See Yourself At Your Current Job For A Long Time?

Purchasing a home or condo can be somewhat of a ball and chain if you get fired or decide you don’t like your job.

If you see yourself staying put at your current place of employment for the next five to ten years then go ahead and purchase (if purchasing makes sense in all other aspects). Otherwise, renting might be the best thing. You would not want to buy a condo that is an hour away from your job.

How to Make Your Home Stand Out One of the questions I often get from home sellers is “how can I make my home more appealing to buyers”. When you decide to sell your home, you are entering a competitive marketplace where there are probably numerous other houses that offer similar features. It is imperative if you want to stand out that you put in the time and effort to make your home appealing.

A good real estate agent can do a lot for you in this regard, but ultimately it will be up to you to make the house as welcoming and inviting as possible to all the people that are going to come through the door looking to buy.

Since you are probably not the only person selling a home in your area, chances are you will need to make a few adjustments to your home and they way you use it to stand out. Just a few weeks ago I was having a conversation with one of my clients in Millbury Massachusetts about some of the little things they could do to make their home pop! Real Estate agents love it when their clients follow sound advice. You know what happens? The home sells quicker and for more money!

Here are a few easy ways to make your home more appealing to buyers:

Fix the Little Things

The longer you live in a place, the easier it is to overlook all the little things that need work. Fixing these little bugaboos is one of the smartest things you can do to make your home more appealing to buyers without breaking the bank.

The broken doorknob in the bathroom, the cracked tile in the kitchen, the dead spots in the lawn. You may have been meaning to get to all of them, but you just haven’t. Well, now is the time. The more polish you can put on your home through little repairs, the more appealing it will be. One of the best things you can do is walk around each room in your home looking at all the imperfections. Try to be a home buyer for a moment and think through their eyes. The more things you can scratch off the list the better.

One of the things real estate agents talk about all the time is prepping for the home inspection. Once your home goes under contract the biggest hurdle is clearing the buyers home inspection. This is a place where either numerous sales fall apart or are renegotiated. By taking the time to take care of the little things you could potentially avoid either a sale gone bad or more money coming out of your pocket!

Clean and Keep It That Way

Some people are more adamant about maintaining a clean home. Wherever you fall on the spectrum, when you are trying to sell you need to get serious about cleaning and staying tidy. Dirty homes are not appealing to buyers, and at least some of the other homes you are competing with are certainly going to be clean. Depending on how bad things are, it may be worth the money to hire some professionals for a deep clean. Once the worst is taken care of, make sure you tidy up before you show anyone your house. The article referenced above has an exceptional info-graphic on what to do to get your home ready for the market! When you don’t have a lot of money to spend, deep cleaning is one of the best things you can do to make a home more appealing to buyers.

De-Clutter

Declutter Your Home Homes have a tendency to fill up over time, especially if you are any kind of collector. But clutter is not a good selling point for a home. Excessive clutter makes a home look dirty and small, neither of which are selling points. If you have a significant amount of things with nowhere to put them, consider getting a storage unit for your stuff until the sale is complete and you have moved into your new home. And the garage, basement and attic are not appropriate places to store clutter. Buyers want space in all areas of the home.

Making your home feel more spacious can do wonders for putting more money in your pocket. Clearing the clutter out of your home can do just that! Here is an excellent guide on how to choose a storage unit. Putting unnecessary possessions in a storage facility can really make your home feel so much different to a buyer who is looking for an open and spacious plan.

Go For Neutral Paint

Painting the walls of a home can really personalize a space, but being over personalized is not what you want when you are trying to sell. You want to appeal to as many buyers as possible, so you need to offer something fairly neutral. If you have brightly colored walls, consider painting them over with a more buyer-friendly color. You can always go wild in the next house you buy. Being neutral doesn’t mean you have to make your home look like a hospital. In fact that is not something you should do! There are some very nice beige and light earth tones that can make a home look really appealing. Need some help? Take a look at Home and Gardens paint colors that help sell a home.

Look to Your Lighting and Fixtures

Lighting and fixtures can really change the feel of a home, especially one that is dated with 70s fixtures and dim interior lighting. Buyers today want lots of light, natural and otherwise. They also want the home to look like something they would want to own, not something out of their grandmother’s place. Consider buying updated light fixtures that make rooms more vibrant and more contemporary. And do your best to bring in as much natural light as possible. Sunshine is always appealing to home buyers, and it makes your home look bigger as well. Realtor.com has an excellent resource on how to use lighting to sell your home. Use some of their tips for a well lit residence.

Avoid Personalizing Too Much

Your home is your castle, but when you are trying to sell it, you want it to look like it could be someone else’s castle too. Being too personalized in your home can push potential buyers away, because they find it more difficult to imagine living in the home. Walls full of family photos, murals painted on the walls and your porcelain doll collection are all great when you are only living in a home. But when you are selling, you want to minimize these things to give the buyer a chance to envision living there. Here is some good advice from Wiki How on how to depersonalize your home before putting it on the market.

Handling Pet Issues

Remove Pet Odors Pets are amazing companions, but they are not very good salesmen. Buyers may love dogs and cats, or they may want nothing to do with them. As long as they are making a good offer, you want either kind of buyer. So you will need to address pet-related issues before you attempt to sell. Pet stains and odors must be eliminated, the backyard must be picked up and re-sodded if the grass has been killed and you should be prepared to remove pets during showings. You are trying to appeal to as many buyers as you can, and pets can really get in the way of this goal if you are not careful.

Up Your Curb Appeal

Buyers will see the exterior of your home first. You want the first impression to be a good one, which is why you will need to do your best to increase your curb appeal. Removing clutter from the homes exterior, touching up paint, adding plants and improving the landscape – all of these things should be a priority. These are all great improvements to increase a homes value. You want the exterior to look great. Keep in mind that you don’t need to go overboard with the landscaping. Pulling weeds, adding some nice flowers and greenery and laying down a coat of mulch should not be too expensive, as long as you do the work yourself. The exterior of your home should be just as appealing to a buyer as the interior!

Listen to Your Realtor

If you take the time to find a real estate agent with a good track record in your area, he or she should have some targeted advice about preparing your home for sale. General tips like these are useful, but the most important thing you can do is tackle the problems that your Realtor considers most vital.