Looking to purchase a condo in the Melbourne, Florida area? Don’t forget to ask these crucial questions first before making an offer:
- How’s your credit score?
Like any big-ticket purchase, let alone a house, you want to make sure financials are in order when investing in condos in Melbourne, FL. For starters, make sure your credit score is above 700 to get the best mortgage rates possible. Moreover, your mortgage and other home expenses should ideally not exceed 28% of your income. Likewise, make sure your total budget includes important but oft-forgotten expenses like closing costs.
- How well-funded is the condo association?
Condo associations make sure that the building is properly operated and maintained, but they can only do so if they have enough funds. Ask for a copy of the association’s budget and financial statements to assess its health.
When the association is well funded, incidental expenses such as emergency repairs are taken from the budget—not charged to residents.
- Who manages the property?
Some condos are self-managed, meaning the association and its officers handle the day-to-day upkeep of the building. Oftentimes, however, management is sub-contracted to outside property managers. If so, check out the credentials of the company that runs the condo. Do they specialize in condo building management? Do they have a good track record? Remember: poor management can drive down the value of any property.
- What is the building like?
Some condos are midrise and have only a few floors; this means fewer residents per floor, but also often translates to higher price tags. Other buildings are skyscraper tall, which maximizes lot size for greater savings. That said, this means more neighbors and longer elevator rides.
- How much do you need to pay for insurance?
All homes need to be insured, but there are certain unique factors that determine a condo’s insurance premium. For instance, mortgage lenders often require a flood insurance rider for beachside properties. Older buildings that don’t meet wind mitigation guidelines might be more expensive to insure. Before purchasing, make sure to go over this detail with your real estate agent.
- Have you read the condo rules?
Some condos allow pets; others do not. Others allow extensive renovation work; others won’t even let you take down a wall. Ask for a copy of the condo rules and peruse it carefully. By law, you are given 15 days to review the documents if buying a brand new unit, and three days when buying an existing one. If you aren’t happy with any of the stipulations, look elsewhere.
- Are you happy with the amenities?
Many condos are built to support certain lifestyles, with its amenities following suit. You’ll be paying for these amenities through association dues, so make sure they fit your needs. At the very least, look for features such as swimming pools, function halls, gyms, and the like.
With great views, access to the beach, and proximity to all of life’s daily conveniences, a condo unit in Melbourne, FL is a wise investment. Just make sure to review each option carefully so you end up with the best possible property that suits your needs.
Need help looking for a condo in the area? The Garrett Bell Team is here to help you fulfill all of your real estate goals in this picture-perfect paradise. Call (321) 537-6697 or e-mail [mail_to email=”[email protected]”][email protected][/mail_to], and let our team assist you in finding your dream condo.
