The condominium market has imploded over the past year or two thanks to a downturn in the overall housing market and overbuilding in many local markets. Complete condo projects remain unfinished in Miami with some nearby completed units half empty due to foreclosure and/or a failure to sell.

Bad news for one person could be good news for another one, particularly for the investor who wants to snap a bargain while the market remains depressed. But, condo living isn’t for everyone and when condo fees are included, that bargain can quickly yield some nasty surprises.

Unlike most other residential housing options, condo costs are difficult to predict long term. Certainly, both the house owner and the condo dweller must pay property taxes, insurance, and similar expenses, but there are other costs which tend to go up much faster than the rate of inflation, expenses which are added to condo fees.

Let’s take a look at the charges which drive condo fees:

Age of Building — Newer projects don’t have quite the overhead of older buildings, namely the need to update or overhaul old equipment, repair fascia, replace flooring, paint walls, you name it. Your particular unit may have been updated, but the common areas may need a refreshing or, worse, a complete makeover. You’ll be responsible for a portion of these costs which are frequently added to monthly condo fees.

Utilities — Everyone is paying more for gas, electricity, and water. Condo owners are responsible for their share of the building’s utility usage and these rates have gone up dramatically over the past few years. Add in garbage removal, recycling, landscaping, sewer, and related expenses too.

Insurance — You have insurance on your own unit, but the association governing your building has to insure the entire property. Condos close to the ocean or in major cities have seen their rates skyrocket. These costs, of course, are passed on in the form of higher condo fees.

Of course, buying a condo may be the only option for people who have to live in a particular area. If you are planning to buy, examine the financial documents closely before you sign. Learn how much reserves the condo association has on hand to cover planned maintenance including a new roof, elevator, pool, etc.

If the funds are insufficient, you can expect your condo fees to increase dramatically even before maintenance is needed. That $225 monthly condo fee could suddenly jump up to $350 or $400 per month, a figure that must be added to your own mortgage costs, insurance, and property taxes.

Most defintely, if you are planning to buy a condominium, condo fees are going up and, in most cases, at a rate much faster than inflation. Think before you buy!

Resources

7-Step Home Buying Guide

Home Buying Map (download)

Lending Calculators

Tags: common areas, condo association, condo fees, condominium, home maintenance, housing, pool, real estate, roofing

Homeowners who are preparing to put their houses on the market are understandably nervous these days. Will a buyer be found? Will they be approved for a mortgage?

This sort of uncertainty has some owners thinking about spending extra money to make repairs in a bid to improve the marketability of their homes. While major repairs should be handled before the home is offered for sale, most sellers can make minor repairs and still sell their homes.

Before you sell, you need to assess how your home looks to potential buyers. A skilled real estate agent can suggest what repairs you should make before marketing your home; those tips are likely to include the following:

Clean up your landscaping — your front lawn could make or break a sale; if your home doesn’t have curb appeal, then buyers may not be able to “look past” the front door. Trim bushes, put grass seed down to fill in patches, plant flowers, and lay down mulch. Trim trees which are obviously diseased too.

Refreshen your front door — does the entranceway to your home “wow” your visitors? If not, consider applying a new coat of stain to the front door, fix broken glass, clean the light fixture, lay down a new welcome mat, apply a fresh cost of paint around the frame of the door.

Interior walls — short of painting your home’s interior, touching up walls by removing smudges and repairing cracks could be all that is needed. If wallpaper has obviously aged and looks dated, remove same and repaint the walls with a soft color.

Too much furniture — remove extra furniture as too much furniture can make a room look smaller than it should. If a chair or sofa is worn, put a new slip cover over same or remove that piece.

Carpeting, flooring — ripped carpeting should be fixed. If old, replace it or if there are wood floors underneath, have the floors refinished — you’ll save money over buying a new carpet.

Bathrooms — replace that old toilet seat with a new one, fix dripping faucets, caulk the shower/tub, clean the tile, replace the shower curtain and rug.

Kitchen — keep all appliances even if they are old as long as they work. Your next buyer will probably replace these items anyway. Re-stain or repaint cabinetry and fix counters that are cracked, worn, or otherwise needing a makeover. Remove excess small appliances when showing the home to create a more spacious appearance.

Closets, nooks, and crannies — sticking everything in closets or other out of the way places is a no-no. Organize these areas to “show” exactly how they are to be used; avoid filling up your attic, basement, garage, and shed with stuff you really don’t need and won’t ever use again.

HVAC — an old furnace, air conditioning unit, or hot water heater could be a sale stopper. Replace these appliances before putting the home on the market.

Instead of spending tens of thousands of dollars readying your home for sale, you could spend just a few hundred to a couple of thousands of dollars and have a home that will sell quickly. The key, of course, is to do the minimum repairs in advance of marketing your home, to help you maximize your profit and move on with your life.

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Doors and Windows

Garden Maintenance

Home Projects

Upstairs/Master Bathroom

Tags: bathroom, bedroom, carpeting, deck, dining room, floors, FSBO, home exterior, home interior, home renovation, home repairs, home sell, kitchen, landscaping, porch, real estate, realtor, roofing, siding, walls

This article is part of our ongoing home construction specification plan series.

Assembling a Home Construction Specification Plan — Spec Plan E: Home Roof

With the framing done, the next step in the construction specs process is putting a roof on your home. You’ll want to protect your home with the best possible materials, but price could be the determining factor as you choose between asphalt and fiberglass shingles, cedar shakes, tile, slate and other more expensive materials. With energy conservation at the forefront for many consumers, you may want to consider alternative materials or include solar panels or some other alternate energy system when putting on your roof.

The Rising Cost Of Home Construction

One thing to keep in mind today is that you’ll probably pay more for your materials than perhaps what you expected to pay. Surging petroleum prices is impacting home construction costs as the cost of delivery and the materials jumps. Ask your home builder if he can lock in the cost you pay for the materials before further increases take effect.

Your Rain Removal System

Inasmuch as the roof is important, how the roof handles the elements is critical to its durability and longevity, as well as to the overall protection of your home. Gutters, downspouts, even underground piping can help move water away from the home. Unchanneled water can damage your home’s foundation, possibly causing structural problems over the long term. Polyethylene downspout extenders, as one example, are inexpensive and can direct water where you want it to go with just one twist. Please check out our construction spec sheet (free download) for some helpful home building ideas.

Search For House Plans

Finally, your home’s design in one more factor which will impact your roofing costs. Search house plans to find the house style that is right for you and your budget.

Tags: construction roof, home building, home building plans, Home Construction, home construction specs, roof construction, roofing