The Good News: You’ve decided to take the plunge and buy a condo in Palo Alto! Congratulations!
The Bad News: Inventory is low, prices are high and figuring out possible HOA issues is giving you a migraine.
Advice: Take two aspirin and hire a local real estate agent who knows condos and can help you navigate the sales process.
Here are a few of the reasons you need to work with agent who is a condo expert:
In 2013, the average condo in Palo Alto sold within 10 days of being put on the market. That means that a buyer would have to go through the property, become pre-approved for a loan, examine all the property disclosures, sign everything and prepare an offer within a week and a half. Yikes! An experienced agent can help you clarify what you’re looking for, get all your paperwork in order and give you real-time information about market conditions so that when it comes time to buy, you’ll make the winning offer.
There are weird loan requirements for condos. Many condos have hidden issues that may affect the loan. For example, if a property is comprised of more than 30% rental units, as opposed to owner-occupied, many conventional lenders will either require an exception, or not loan on the property. Knowing the specifics about local condos in advance will avoid a possible deal-killing surprise when you are ready to close on a sale.
Trouble with appraisers creates another loan problem. Appraisers often have trouble catching up to Palo Alto’s market prices. This is especially true with condominiums, which have their own quirks. A knowledgeable agent can help guide appraisers and provide them with up-to-date comps to head off any problems.
HOA Documents are important. You need to make sure that you are well aware of all the issues that can be hidden in the documents, such as the building’s financial situation, reserves, rules and regulations. If necessary, an agent can recommend an HOA document specialist who can do a “wellness check” of the condo’s HOA.
If you’re thinking of buying a condo, be sure to work with someone who understands the local condo market. Call me to learn more about how I can help you purchase the condo that’s right for you in Palo Alto.
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