| by Kenneth Chase | 54 comments

Buying a Condo MISTAKES | 5 Things to Avoid When You Are Purchasing A Condo


How’s it going everyone, Matt Leighton and
welcome back to another video. Today is all about helping you avoid mistakes
when purchasing a condo. Purchasing a condo is great for a lot of reasons,
but there’s also some things to be aware of when purchasing in a condominium community. So in today’s video, we’re going to touch
on 5 mistakes to avoid when you are purchasing your condo. Let’s get right into it and start with number
5, which is not viewing the parking spot. The parking spot is extremely valuable and
you shouldn’t be finding out the location of your spot during your final walk through
when you’re only a few days before settling. In some communities, parking spots can be
worth $30,000 maybe even $50,000 so it makes sense that if you drive a lot, I don’t know,
maybe daily, to check out the spot to make sure it is a legitimately-sized spot. For all you SUV owners out there, this might
be a bigger issue than you think. For those condos that you could see yourself
writing an offer on, be sure you know the location of the parking spot. I’m going to be honest, I have yet to see
the parking spot size and location be the deal breaker on whether someone purchases
or does not purchase a condo, but since it’s going to be your property, it’s better to
be safe, than sorry. Mistake number 2 is not knowing about the
potential of having a storage unit. Here in Arlington, VA, lots of condos come
with storage units, whether it is included in the MLS or not. Be sure to ask your real estate agent or check
the tax records or condo docs to see if a storage unit is included. Storage units are valuable. Some buildings value them at $5,000 or more,
so while you’re busy trying and stressing to negotiate a few hundred bucks on the home
inspection contingency, you may not realize that the seller is including a storage unit
valued a $5,000 that didn’t appear on the listing or just straight up comes with every
condo in the building. Mistake number 3 is restrictions. If you’ve never lived in a condo before,
there are certain restrictions that you need to abide by. The most common to look for are usually the
pet restrictions, and then things like grilling restrictions, and move-in restrictions. Remember, you’re sharing common space with
other owners so you have to follow the rules. Most aren’t too harsh, but some rules might
get some getting used to so be sure you read through the condo docs. I think the most outlandish thing I’ve seen
so far is I got an email from a community manager that I was CC’d on and the email read something like – hello
tenant, we need to ask you to remove your raw food that you have hanging from your balcony. That one gave me a good laugh. Raw food off your balconY? This isn’t ‘Nam, this is bowling. There are rules. And I’m pretty sure hanging your raw chicken
off the side of your balcony will get you an email from the community manager in every
condo building ever created. Mistake number 4 is not knowing what percent
of the condo community is owner occupied. Now first of all, your real estate agent probably
won’t know this off the top of his or her head. The listing agent might not know immediately. The best way to find out this information
is to call the condo management office. You could also see this information on the
condo questionnaire but by that point you’re already Under Contract. Why is the owner-occupied information important? Well sometimes when the percentage of investors-to-owners
hits a certain amount, lending becomes more difficult. And when lending becomes more difficult, it
becomes harder to -purchase, which means it becomes harder to sell, which means prices
go down because owners can’t sell. In some communities there is a cap on the
number of rental units allowed so either you are not allowed to rent out your unit or you
join the waiting list to rent out your unit. So hypothetically if you were to buy a condo
with the plan of living there for 3 years then you would hold on to it for another 7
and rent it out, just be sure that there are no restrictions on rentals because that could
significantly affect your real estate investing plans. Mistake number 5 is not thinking about re-sale
value. I want to talk about this one in two different
facets. The first is the modifications you make. Things like extravagant marble or bold fixtures
and finishes might look great for you but for the vast majority of people, it’s going
to like trash. People are going to want to rip out your gaudy
fixtures that you spent $5,000 installing when they move in. So it’s OK for you to make modifications
to fit your lifestyle, sure go for it, just know that 1, you’re probably not going to
re-coup the money you spent putting into it, and 2, you’re real estate agent should or
will be recommending you change any bold modifications back to something neutral. The goal is to appeal to as many buyers as
possible. Hopefully you’re agent doesn’t say tear
down this kitchen that you spent $50,000 on and make it bland to appeal to everyone. But if you are making significant changes,
do think about how that will affect your value when you go to sell. And the second part of this is not valuing
features that add value to the condo. Let me tell you what I mean by that. One example – balcony versus the sunroom. I’ll ask my clients which do you prefer,
and they might say neither. OK, you might prefer neither, but if you look
at the comparable properties that have sold, you’ll see that sunrooms get $10,000 more
than units with balconies. Again just an example. You may not care about a balcony, you may
not care about a fireplace. I get it, I’m indifferent to so many things. But if it’s something that could potentially
add value when you look to sell, and you’re indifferent about it, why not try to find
a condo with that feature. You may not care too much about the feature,
but I guarantee when you look to sell, you’re going to care about the sales price and about
your bottom line. OK there you have it, 5 mistakes that condo
buyers are making. Guys if I left out any mistakes for purchasing
a condo, I would love to hear from you so drop me a comment in the comment section below
and let me know your thoughts. OK thanks for watching. Until next time, create a productive day. Take care.

54 Comments

Nick Rudnev

Jun 6, 2017, 3:23 pm Reply

Prospect house in Rosslyn perfect example of entire building allowing zero pets

Yazan Kioumgi

Jul 7, 2017, 4:13 am Reply

Also, be aware that River Place Rosslyn is built on a leased land where you'll practically lose your house in 2052. I was close to making that mistake. Great video by the way 🙂

Timelessmusic Familymusic

Jul 7, 2017, 9:35 pm Reply

I bought my condo 33 years ago. My advice is look at the neighborhood as a whole. If your in a nice neighborhood with a lot of beautiful homes it's probably a good place to live. If your surrounded by a lot of apartments, liquid stores, bars, or even heavy traffic areas your going to run into a lot of problems which includes crime. Yes, I know crime can happen anywhere, but you increase your odds by choosing a much safer neighborhood as a whole.??

qlovox

Aug 8, 2017, 3:18 pm Reply

Big mistake is not finding out about hoa fees and how well the hoa is maintaining the place
Great vid

cody hill

Aug 8, 2017, 11:11 pm Reply

mistake number 5 into mistake number 2 lol

Shawn Afshar

Aug 8, 2017, 7:07 am Reply

Condo be good for a single guy first time homebuyer ?

Tameka Anderson

Aug 8, 2017, 4:25 am Reply

Noc4ball

Aug 8, 2017, 9:19 pm Reply

If you've purchased a condo in today's market, you've already made a major mistake. Historically, they are terrible investments. I'll never understand why people choose condos over townhouses… Townhouses are a cross between condos and single-family living. With a condo, you share more amenities with your neighbors than you would with a townhouse. Above all else, condos appreciate at a slower rate and take the largest hit when the marker is cold.

Harold Hart

Aug 8, 2017, 12:35 pm Reply

DO NOT BUY A CONDOMINIUM WHICH IS A
WASTE OF MONEY AND CONSTANT ALARM TESTING EVERY MONTH.

Luis Galvez

Sep 9, 2017, 7:51 am Reply

Can you rent out the extra rooms in the condo or are those restrictions? I plan on purchasing a 3 bedroom condo and renting out the two extra rooms.

bem jam

Nov 11, 2017, 8:39 pm Reply

Big help. Thanks!

Lisa J

Dec 12, 2017, 4:19 pm Reply

Would love to buy a condo in Arlington, but I have absolutely NOTHING for a down payment. So…I am a renter.

Santosh kumar

Dec 12, 2017, 12:48 am Reply

corner condos sell at higher price then the avg price of same condo

Crystal Dean

Jan 1, 2018, 7:22 pm Reply

Where were you when I was making thousands and thousands of dollar mistake because I was clueless! Your awesome !!!

Athletic Glow

Jan 1, 2018, 2:00 am Reply

Thanks for this video??

Дядя Федя

Feb 2, 2018, 5:44 pm Reply

Condos shot up in value here in Denver Co, and if it comes with a garage it adds extra 50 grand to a value of a condo. it cost about less then 10 grand to build a garage, investors make $$$$. In some desired areas 1br condos go for over quarter million dollars

ilubCHRISTsomach

Feb 2, 2018, 5:21 pm Reply

Hey matt we went to school together! I'm planning to buy a condo hopefully in 2 years

Cristina Sasso

Feb 2, 2018, 11:58 pm Reply

Thanks!!

Omri Xavier

Mar 3, 2018, 5:35 pm Reply

I purchased a condo that did not include “assigned parking”. i lived in the condo I purchased for over a year and there was plenty of parking even though it is a mixed use area. When it was full there was additional on street and other parking lot with over 400+ spots. Once the developer sold all the condo units for a high price because they were the only properties in the area, he decided to build 3-4 story condos on the existing parking lots tripling the number of residents and eliminating hundreds of spots. When residents requested a parking ordinance to at least designate 1 spot per condo unit (only 105 units) they threatened to sue anyone who complained because it would be hurting their businesses. Beware of evil greedy developers and real estate investors they will try to screw you out of as much money as possible and attempt to take your home from you against your will and leave u with nothing and make you pay rent or buy your home a second time from them at a higher price. Don’t trust Levin Capital or affiliates. So many lawsuits and they continue to operate

eddiequest4

Apr 4, 2018, 11:46 pm Reply

Time is money. Save 10 minutes by reading the video description.
You're welcome.

Deborah Roy

Apr 4, 2018, 8:15 pm Reply

Jessie from breaking bad ?

theguythatcouldfly

May 5, 2018, 3:02 pm Reply

Excellent Lebowski reference!

Matt Leighton

May 5, 2018, 1:27 pm Reply

▶▶▶ Get my new book: 46 Condo Buying Mistakes NOW –> https://www.amazon.com/Matt-Leighton/e/B00RTVS6PY/

ohmy love

Jun 6, 2018, 3:55 pm Reply

Look at cars parked in parking lot and look at the condition/ cleanliness around dumpsters. High ownership ratio is very important. Tenants don't really follow rules or don't care to keep things clean.

Alexa Arachy

Jun 6, 2018, 5:53 pm Reply

Thank you for the tip.Love your energy

Arvin Casupanan

Jul 7, 2018, 3:42 pm Reply

https://youtu.be/NBFY6kjxq6Q wow ?

Mark Wiens Vancouver Real Estate

Jul 7, 2018, 1:56 am Reply

Great job Matt!

Nomin Evader

Sep 9, 2018, 4:33 am Reply

U dindt mention hoa

Texas_Raised_ Texas _Made

Sep 9, 2018, 4:55 am Reply

Hey matt! I live in a owned condo BUT still debating if i want to start living in a house. Im in houston

joshua morales

Sep 9, 2018, 2:37 pm Reply

You can never really own a condo huh lol

Ana Santos

Oct 10, 2018, 5:29 pm Reply

Hi Matt
My main concern is homeowners association at the Sunshine State of Florida not only for condos but also for single family houses and townhouses. Unfortunately all I keep getting is bad vibes about these people aside of all the negative YouTube videos ? My intentions are to buy a home and also invest in real estate property at West Palm Beach Florida. I'm asking if you can educate me on this particular subject can you. Can you tell me the do's and don'ts and what to look for when dealing with those HOA people. TY ?

JLR Writer

Nov 11, 2018, 5:35 am Reply

Great video Matt?? good info

Chuyi Wen

Dec 12, 2018, 7:11 pm Reply

Lol yeah, in China it’s pretty common to hang raw meat outside to preserve them. But I can see it’s strange here in US

Roselyn Rainey

Dec 12, 2018, 2:47 pm Reply

Thank you so much!! I looked at my first condo recently and I am a little scared of the process.

Cupcakelover

Jan 1, 2019, 2:05 am Reply

You are so handsome.

Manda Ebron

Jan 1, 2019, 7:33 pm Reply

Thank you for this info!!!!!

Michael Jeffries

Feb 2, 2019, 6:39 pm Reply

Good info sir.. thx

bordem394

Feb 2, 2019, 8:55 am Reply

any chance you could talk about condo fees and when it should be a deal breaker

RDRAFF1

Mar 3, 2019, 12:47 pm Reply

When idiots do real estate a shoe box with for 5 million. This is where America is heading. Idiots set up to make lots of easy money, then they spend money for a computerized self sufficient house in a climate control neighborhood with heated side walk for summer or A.C. blowing through air in the summer. Nah the spending millions on some basic shit with little or no perks or special add on. A pool, a gym, and a nice environment isn't enough for hundreds of clients to pay millions of dollars for property. Plus they get shitty service because the staff maintaining these luxury buildings arn't enough to tend to all the residents and they hardly are being paid enough to be in the mind set to give top of the reception or service. Idiots are ruining N.Y. with their unlimited spending on non sense and the smart people can't seem to make ends meet. How fucking smart are you to be spending $3,000 or more for a shoe box in a big ass crowded building. The building it self have all the perks of a WMCA
But the apartments are basic and the property owners are cheap and are only thinking about money and that's sad when there are so many poor struggling family trying to make it in an economy not design for family. These real estate situations are greatly affecting our quality of life. It affects the way we think when real estate becomes unfairly out of reach for the average human born in a world where air, water and land should not have ownership. No man or entity should have the right to own land unless the create it from scratch and it not be connected to anything created by god for his people to follow his laws and government. Government is a hazard to society. It must me abolished world wide! Look at these ridiculously high pricesses and crime and misery people have to endure for government to exist. We need to take a stand and take back our lives and our family. Fuck government and the making shoe boxes and charging people so much property tax and not regilating rent so the people should suffer. Shame on our government. The people in office are taking our lives for a joke.

HILDA PINTO

Mar 3, 2019, 8:03 pm Reply

I'm looking for a condo or house in toronto. Burlington or oakville. moving soon.

Bobthebuilder

Mar 3, 2019, 7:50 pm Reply

Thers only one and its buying the condo. Its a trap!

ImmortalHitman

Apr 4, 2019, 9:46 pm Reply

How stupid could someone be to not understand their parking situation before making a major real estate purchase?

Michael zma

Apr 4, 2019, 10:19 pm Reply

You should have mentioned Home Owners Associations

NEW HOME SALES

Apr 4, 2019, 5:10 am Reply

Good points! Condos are a lot more complicated than people might imagine.

krotsin

Apr 4, 2019, 4:48 pm Reply

I believe it's also very important to inspect condition of the condo you buying and the building itself. It can be looking good from the outside (fresh paint or whatever) but totally rotted or damaged from the inside.

Basharat Qamar

May 5, 2019, 12:34 am Reply

You mentioned almost all points but your number order was confusing. You started from number 5 and then moved from 1

Thunder

May 5, 2019, 2:07 am Reply

How about hanging my old granny undies that I've had for the past 50 years on MY balcony? Will they have a problem with this too?

Carly Morales

May 5, 2019, 12:56 pm Reply

We definitely made a couple of these mistakes when buying. Our parking space is SO FAR from our unit!

Düfek Films

May 5, 2019, 7:03 am Reply

5..2…3..4……5??

Heidi Gorman

Jun 6, 2019, 12:48 pm Reply

Hanging Raw Meet??? hilarious! Great information! Thank you so much! Just subscribed!

Yuxuan Li

Jun 6, 2019, 9:40 pm Reply

The raw meat thing is actually a cultural delicacy in China. It is made of pork and because back then China was so poor, that way of preserving meat helps them last longer. they usually do it in winter leading up to Feb in chinese new year. I have never seen it tho.

Brian Thomas

Jun 6, 2019, 10:45 pm Reply

I’d love to buy a condo, but im scared of HOA fees and such

Alex Chambers

Jul 7, 2019, 3:10 pm Reply

This is bowling there are rules lol

Reaper666

Aug 8, 2019, 5:04 am Reply

its free real estate

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