Condo investing is indeed a smart way to spend your hard earned money. Whether you opt to rent the unit or use it as a vacation house and sell it later when the time is right, you’ll surely be getting more of the money you spent in the purchase. But of course, you will need to choose wisely which unit to buy and go through the entire buying process with much care.
Steps in buying a condo
To ensure a successful condo investing venture, you will need additional information on the steps in buying a condo.
- Getting approved for a mortgage
Most real estate professionals would agree that the first step of the buying process is getting approved for a mortgage. In fact, you should do this as soon as you’ve found the property that you want to buy. Getting approved for a mortgage early on – even before you make an offer – gives you an edge over other potential buyers. Let the seller know that you are interested in buying the condo and that you are already approved for a mortgage. This makes the entire sale process much quicker, plus it makes you a more credible buyer than other buyers.
- Making an offer
The amount that you offer to the seller to purchase the condo should be competitive, especially if you are not the only one making an offer to the unit. At the same time, the offer should be something that is well within your budget and wouldn’t leave you financially at risk after the purchase.
To ensure this, work with a professional real estate agent in determining a fair and reasonable price for both you and the seller. What most real estate professionals would suggest is looking at how much similar properties in your area have been sold for. Make sure the properties you are looking at have similar size and amenities with the condo unit you are considering buying.
You also want to consider the current market when determining the amount to offer. Current market conditions will tell you whether or not you are making a fair offer to the seller.
- Creating the sale agreement
After making an offer to the seller and the seller agrees to your offer, you will have to agree on other aspects of the sale as well. This includes which appliances and furniture you are buying along with the condo unit, how much you will pay for the deposit and closing fees, and others. You and the seller will also have to decide when you will pay for the deposit and closing fees, any pending repairs or renovations in the unit, when the title will be transferred to your name, and many others. As soon as you’ve agreed on this, the seller will have to put these into writing. Upon receiving the contract and agreement, have a real estate lawyer study it and make sure your interests are well represented.
- Closing the sale
After everything that has been agreed in the sale agreement – such as repairs and additions that you requested – has been completed, you are now ready to close the sale. At the closing, be sure you have your real estate attorney with you to help with reviewing all the final documents that you need to sign. Although you most likely already know what each closing document will entail, it is still critical that you and your lawyer review them before signing. This is to ensure that nothing has changed without your knowledge and that the purchase will go through as agreed by both buyer and seller.
To learn more about successful condo investing, contact Jerry Pinkas Real Estate Experts now.
Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
Helping you ensure your condo investing success!