Kathy Monahan, an agent with Forest Hill Realty in Toronto, has been helping clients buy and sell condos for nearly three decades and offers these 25 insider tips when you’re thinking of going condo.
Before you start
1 Hire a professional realtor to help with the buying process. It costs you nothing, since the seller pays the commission.
2 Make sure you have a good lawyer.
3 Seek financial qualification, to determine how much mortgage you can afford.
4 Crunch the numbers with your financial backer; you’ll need extra money for closing costs, moving, land transfer tax and lawyers’ fees.
On the hunt
5 Be prepared to see a variety of styles: low-rise, high-rise, with or without amenities such as doormen or gym facilities.
6 Purchase the largest suite you can afford. Studios and one-bedrooms are more difficult to re-sell.
7 Visit the neighbourhood at different times of the day and evening. Does it suit you?
8 Choose a handsome view. Not only will it make day-to-day life more appealing, but it helps with resale later.
9 Bear in mind that a southern exposure, although bright and sunny, may also be hot in the summer.
10 Avoid a layout that looks out over the garbage pick-up area.
11 Avoid a suite that overlooks the garage entrance and the coming and going of vehicle traffic.
12 Avoid a suite beside or across from the elevator.
13 A parking space is highly recommended. Even if you don’t drive, you can always rent it out.
14 A locker is also highly recommended. There is rarely if ever enough storage space in a condo.
2 Comments
I’m a property inspector, you should know that unless the building is “Rain Screened” you may be facing huge repair costs down the road. That holds true for Low and High Rise buildings. Get at least 4yrs of minutes from before 2000, those minutes will more accurately represent the true condition of the building. Buildings built after 2000 will be Rain Screened in British Columbia, retro Rain Screen rehabilitation after 2000 should be better than prior. Hire an inspector to review the building (building envelope training). You should not use any of the inspectors recommended by your agent, the inspector may be more interested in keeping the agent happy than to provide a candid evaluation. When 95% of all inspectors are dependent on free Agent referrals your choice of an appropriately trained, experienced and client dedicated inspector is very narrow. Many inspectors claim to be “Independent” when in fact they are dependent on referrals. Go to www.independentinspectors.org to find an inspector in your area, you should know that even here some inspectors are playing both sides of the fence. Choose an inspector who will inspect the exterior of the building, Parkade, roof, mechanical rooms, common areas and of course your unit. The inspection should take 4-6hrs or longer, go with the inspector for the entire inspection. You may pay twice the average inspection fee now but that is much better than getting a $80K assessment later. Take your time searching for an inspector, check references, ask for a sample report. When you ask for extra strata minutes your agent may ask you to pay the $200 to $400 for this “extraordinary” request. Tell your agent to take care of it themselves- this is their cost of doing business, remember you are indirectly paying for the realtors commissions. You are paying a professional fee, you should expect a professional service, professional agents will provide any and all info you request in a timely manner without complication or cost. Tell your agent to “Put a Rush on it” that’s the jargon. Don’t get caught buying a “Leaky Condo” do you homework early. Ted Gilmour, CPI
These are some terrific "starting points". I would also suggest that those interested in buying a condo (particularly first time buyers) take some time to "know" what they are buying. Most condo's are governed by rules and regulations, the building's declaration, and ultimately the Condominium Act 1998. There are many situations that may pop up that you may think you have ultimate control of, when in fact you may not, this is often the case with noise related issues, and having to remember that you are in a "community living arrangement" and each owner/resident has to respect the rights of others. Be aware that while you do own your unit, it really means you are buying a "share" of the corporation, and as such, you become part and parcel to the shared health and welfare of the building and it's premises. If you buy a resale unit, and choose to make extensive renovations to the unit, be advised, most buildings will require you to submit a "plan" to the Board of Directors/Management team for approval. If these changes go beyond simple cosmetic changes, and are not sanctioned by the Board, you could be responsible for putting it back to "stock" as defined by a common unit definition bylaw. Now, I'm not talking about simple countertop changes, or paint,etc. However, if your kitchen reno involves moving a wall, etc. Make sure you submit your plan to the Board of Directors, or you could be in for a surprise down the road. I would also suggest that, if you can, take time to get involved with the Board of Directors, at least for one term. It's rewarding to learn what goes on to manage your building, and most condo corporations will send you on a course provided by the CCI to help you with the task of good governance. Ensure your lawyer reviews the financial planning by your respective Condo Corporation, make sure they have a complete and up to date Reserve Fund Study in place. Make sure you know the buildings respective pet regulations, often a building will have rules about large dogs (no dogs above 25 pounds) or restrictions on exotic pets,etc. Condo living can be great, but as with most things, a little research will prove worth it in the end.