1.      Get your financing in place FIRST, even before you make an offer.

2.      Be aware that Fannie Mae and Freddie Mac have new and tighter restrictions on condo mortgages. Your REALTOR® will need to know how many of the units in the complex are for use as a rental and in new complexes, the required percentage of units that have sold is 70% or that are under contract.

3.      The Condo association restrictions and rules are crucial to review. Also, if the current owner is in a distressed situation, he or she may not be current in the association dues. Fannie Mae even looks at the percentage of delinquent association dues and won’t handle mortgages with 15% or more over 30 days late.

4.      Does the unit have the FHA seal of approval? If so, the down payment could be as low as 3 ½ % of the purchase price. 

5.      Buyers must inquire initially what the down payment requirement is to avoid an unpleasant surprise.

 

Sellers of a condo unit also have some preparation to handle prior to putting it on the market:

1.      Pricing competitively is CRUCIAL! Be certain your REALTOR® does a thorough market analysis to have your unit at the top of comparable properties, but not above. In this market, it is imperative to not turn potential buyers away with an unrealistic asking price.

2.      Don’t take personally an offer that is lower than you hoped for! Have your representative make a counter offer and be willing to negotiate to achieve your goals.

3.      Be cognizant of closing costs and factor them into your bottom line.

 

I firmly believe if ever a REALTOR® was needed it is NOW and sellers are making a big mistake by going it alone to attempt to save paying real estate commissions. Real estate professionals can do the very necessary research in setting a price, give you the needed exposure you must have and be your advocate in the entire process from list date to closing.