Get pre-approved for a mortgage loan….The New Jersey real estate market is very competitive right now, due to an imbalance between supply and demand. In this kind of market, it’s important for condo buyers to have their ducks in line when it comes to how you are going to finance the purchase. This is where mortgage pre-approval comes into the picture. A good lender will review your financial situation and let you know if you’re a good candidate for a mortgage loan and what type of loan is best for you and fits your needs and wants. They will also tell you how much you might be able to borrow. Getting a pre-approval should be your FIRST STEP BEFORE YOU EVEN START LOOKING to buy a condo in New Jersey.
Get an agent, (like Warren Damiano) who knows the condo market…. Because of the many scenarios involved with the process, we encourage condo buyers it is imperative to work with an experienced real estate agent. If possible, try to find an agent who knows the condo market and is familiar with the purchase process. Each community is different and a good agent will tell you about past and/ or possible future assessments. This professional knowledge can go a long way when you’re buying your first condo in New Jersey.
Don’t forget about the association fees and what they cover…. In some cases, there are similarities and overlaps between these costs. Whether you buy a house or a condo in New Jersey, you will likely encounter property taxes and insurance requirements. But condominium units can have additional costs you should be aware of, such as association fees and in each community it may be different. For example some older garden apartment type conversion condos typically were built with one heating system for the entire building which means the heat and hot water are included in the maintenance. No so for new buildings, typically they were built with individual heating systems. If possible, find out what these fees are in advance, so you can narrow your search to the kinds of condos you can actually afford.
Condos and coops have certain rules, know them before you decide make an offer!Learn the association’s rules and regulations!!! Your agent should be able to get you a copy of the Rules and Regulations prior to offering. When you buy into a condominium project, you will likely be subject to certain requirements and rules relating to ownership of the unit. These might include rules for pets, decorations, improvements, parking and more. You don’t want to be surprised when after you move in. So….do your homework and find out about all of the pertinent rules and requirements for your selected condominium project.
When it comes time..make a reasonable offer based on recent condo sales prices…..When it comes time to make an offer base your offer in recent sales….COMPARABLE SALES…don’t be insulting, (or overpay for that matter) it will only cause the negotiations to go down the tubes very fast. A good agent will guide you using comparable sales to help you justify the listing price and make a smart offer. But you can also do some of this research for yourself, by looking at recent condo sales prices in your target area.