If you're looking for a convenient, low-maintenance home in the heart of town, look no further than a condo. But if you've never purchased a condo before, there are some things you'll need to know.

Benefits of Buying a Condo

When it comes to purchasing a home, most people automatically gravitate to single-family properties. It's a safe and practical choice (and there's always a pretty healthy amount of turnover in any market or neighborhood). But condos are a solid choice as well. Particularly when you consider benefits like:

• Lower price and down payment. While not always true, condos tend to be much more affordable than single-family homes (at least when you consider factors like square footage, amenities, and the age of the property). This means you don't have to fork over nearly as large of a down payment.

• More hands off. In most condos, you're responsible for maintaining everything from the drywall in. Everything else, including common areas, roofing, and landscaping is maintained by the homeowner's association (HOA). This means fewer weekends spent doing chores and more time relaxing.

• Excellent amenities. Condos often have amenities like swimming pools, fitness centers, business centers, and even dog washing stations. These are things you don't usually get when you own a house.

• Prime location. Condos are usually built in high-demand areas. And because they're less expensive than single-family homes, buying a condo could allow you to secure an ideal location that you otherwise wouldn't be able to afford.

When you add all of these benefits together, it's easy to make a case for buying a condo. But before you do, it's imperative that you know how to approach the process.

4 Tips for Condo Buyers

Buying a condo requires a very specific approach. Choosing an experienced condo real estate agent is the first step to success. Once you have the right agent on your team, listen to their guidance and use the following tips to ensure you get the right property for your needs:

1. Select a Budget

Always begin with a clear budget. You need to figure out how much you can afford and then start your search based on that price range.

When setting a budget, it's a good idea to run your own numbers and personally figure out what you can reasonably afford (not what the bank says you can afford). The bank will usually pre-approve you for more than you should actually spend. Double-check the numbers and don't stretch yourself too thin. There's nothing worse than being house poor!

2.Choose a Location

You probably already have an idea of the general area where you want to live. But once you set a concrete budget, you'll be able to zoom in even more on the map and pick and choose specific condo developments and neighborhoods. At this point, the search becomes less theoretical and much more granular.

3.Research the HOA

When you buy a condo, there's more than a mortgage payment. You also have association fees that must be paid on a monthly basis. These fees are what are used to cover amenities, maintenance, and upkeep of common areas. Some HOAs are great, while others are notoriously bad. Do your research beforehand so that you know what you're getting yourself into.

Find out about restrictions, guidelines, rules about guests, how violations are handled, etc. It's better to find these things out sooner rather than later!

4.Dig Into the Finances

Condo owners are often subjected to special assessments when a major project has to be performed. (For example, if a new roof is needed and there isn't enough money in the HOA fund, a special assessment will require each owner to chip in and cover the cost. In some cases, these assessments can cost thousands of dollars per owner.)

While some assessments are inevitable, associations that are well run tend to avoid them. This is why it's a good idea to do your research on the front end and have a trusted accountant or attorney review the finances. This will give you an idea of how well managed the HOA is.

Making a Smart Decision

Buying a condo can either be one of the best decisions you make, or it could easily turn into one of the worst. It all depends on how much due diligence you perform and whether you're disciplined enough to make an intelligent decision. If you use the aforementioned tips as your guideposts, you'll do just fine.

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