Thinking of buying a condo? It’s a great type of real estate to buy, whether you’re planning to live there yourself or are thinking of renting it out as an investment property.

But like any other type of real estate purchase, you’ll want to make sure that the investment you make is a sound one. Buying a condo is very similar to buying a traditional home, but there are some differences.

Here are a few important things to look for when shopping for a condo.

1. Location

No matter what type of real estate you’re buying, location is always the most important factor to consider. And buying a condo is no exception. Whether you’re planning to stay put for the long haul or might be open to selling in the near future, the location will play a key role in your enjoyment of the unit and your ability to sell when the time comes.

2. Condo Association

The health and integrity of the condo association is an absolutely crucial component to consider before buying a condo. Ideally, the HOA will be based on sound regulations, will appoint trustworthy and honest board members, and will keep the building and grounds well maintained.

These associations hold a ton of power, and as such, they can directly influence how you enjoy your home. Make sure to find out what their rules are and whether the HOA is dedicated to keeping owners happy and property values up.

3. Reserve Funds

A reserve fund is a financial account that is contributed to by owners. It’s meant to be used to cover the cost of emergency repairs and large expenditures that don’t usually need to be dealt with on a regular basis, such as a new roof or new electrical system.

Ideally, the reserve fund should have adequate funds in it to be able to cover expected costs at any time in the near future. But if there’s not enough in the pot, all the owners – including you – will have to cough up the money until there’s enough to pay for whatever surprise expense comes up.

4. Condo Fees (and What They Cover)

One of the biggest differences between buying a freehold house and a condo is the maintenance fees. If you buy in an HOA, there will be monthly fees to pay. These fees will vary from one complex to another and are usually based on the condo’s location as well as the type of amenities that are offered.

Find out what these fees are, and what they cover. If there are lots of amenities in the building that you don’t need and will never use, there’s no sense in paying for them. Instead, look for a building that has just what you need so you only pay for what you use.

5. FHA Approval

If you’re planning to take out an FHA loan to finance your purchase, the condo must have FHA approval. If not, you’ll need another type of mortgage to secure the place. This can also be a problem come resale time. You might be eliminating a good chunk of potential buyers if the condo is not FHA approved.

6. Rental Permission

If you’re planning to use the condo as an investment property and rent it out, find out if there are any restrictions on renting in the building. If the rules of the condo association don’t allow rentals in the building, then you might want to search elsewhere.

7. Percentage of Rentals

If the condo allows rentals, you’ll want to know what the share of renters in the building is, regardless of whether you’re buying to live in the unit or to rent it out.

If your plan is to make a home for yourself, knowing the percentage of renters in the building could determine your quality of life. Renters are not known to take care of their properties as well as owners, though there are certainly exceptions to this rule.

If the building has a particularly high share of renters, that could influence how the building is kept, which could also influence your enjoyment of your home as well as its resale value.

If you’re planning to rent it out, knowing what the percentage of renters is will give you a sense of what your competition is like. Plenty of rentals might mean more competition for you, while fewer spaces available for rent might give you an advantage.

You’ll also want to compare what the going rate is in the building, identify which units are rentals, and find out how much the respective tenants are being charged to give you an idea of what you can expect to charge, too.

8. Pet Policy

If you have a furry friend that you want to take with you when you move, you’ll obviously want to know if pets are allowed in the building. If they are, find out if there are any restrictions on breeds, size, and number of pets allowed.

9. Resale Value

While you might not be thinking of selling while you’re looking to buy, it’s still important to consider resale value. If or when the time comes to sell, you’ll want to make sure the condo is an easy sell. Given this fact, units with more than one bedroom are usually easier to sell than studios and 1-bedrooms.

If your budget permits, consider going with something a bit bigger. Of course, you’ll want to consult with your agent before making this decision in order to verify if past sales of larger units in that building or area are in fact easier to sell than smaller ones.

10. The View

This could technically be placed under the “Resale Value” category, but it deserves its own section. The view that the unit offers is an important factor to consider. You don’t want to be staring at a dirty industrial complex or a dumpster from your balcony. Instead, you’ll want a unit that has a decent view.

Not only is this important for you, but it’s also important for buyers if you ever sell in the future. You won’t have much of a selling point if the unit you’re trying to sell has a horrible view. In fact, views are often key selling points for condos, so you want to make sure that the view of the unit you’re looking at is pleasant.

The Bottom Line

Buying a condo is a big deal. It’s your home, and you want to make sure the one you buy is worthy of the money you spend on it. Make sure to consider all of these factors when condo shopping to help you make the best decision for you.

Buying a home is a big commitment, so you obviously want to make sure that your purchase is a sound one. That’s the reason why you might go back a second time – or even a third – before putting in an offer, then maybe even return once or twice more before sealing the deal. You want to make sure the home and the surrounding neighborhood justify the money you’re spending on the property.

When you’re scoping out homes, you might have some items on your must-have list that you’ll be keeping an eye out for. But there are also some negative things that you should look out for that may be signs that the home or the neighborhood is not up to par, including the following.

Cracks in the Exterior

While fine cracks in the foundation wall might be OK, large ones that are at least a half-inch wide or are uneven might be cause for concern. Out of all issues with a home that can be the most cumbersome and expensive to fix, structural issues would be it.

If you notice any large cracks, that might be a red flag that the foundation is faulty. This could be a result of shifting or sinking soil underneath, grading issues, or other reasons. You may want to call in a structural engineer to check out the cracks to make sure there’s no serious underlying issue with the structure or foundation that will end up costing you a lot more than what you had intended to spend.

Paint Covering Up Water Damage

Some homeowners may try to conceal any water damage done to their ceilings or walls by painting over it. What homeowners might not know is not only are they not fully covering up the damage, they may also be allowing mold to fester, which can become a health hazard.

Pay close attention to any uneven patches of paint. If it seems as though certain areas were painted over, take a closer look. There just may be signs of water damage underneath.

Lots of Room Fresheners and Scented Candles

While it’s perfectly fine to freshen up the smell in a home when it’s on the market – and even recommended – overdoing it with the fresh smells might be a cover-up for something lurking. Find out if there is something that may be releasing a foul odor in the home, such as mold, pet urine, sewage, or a leaky pipe.

No Permits For Improvements Made

If it’s obvious that some work was done on the home – such as a room addition or a new deck, for instance – ask to see the permits for the work done. If the seller can’t produce them, the work may have been done without a permit. This could spell trouble for you if the building inspector in your area catches wind of the work done.

If that happens, you’ll need to not only pay for the permit yourself but even possibly go through the motions of having to apply for it and get it approved. The inspector could even go so far as to force you to take down whatever work was done.

Uneven Floors

Floors that are obviously uneven could be a sign of structural issues. As already mentioned, this can be a costly problem to fix. In addition to floors that are not level, look for doors and windows that stick when you try to open and close them or bubbling on the floors. 

Lots of For Sale Signs

So far, we’ve been talking about the home itself. But in reality, you’re buying into the neighborhood, too. As far as the area itself is concerned, there are a few things to look for, and one of them is an overabundance of For Sale signs. If you notice that there are plenty of homes for sale in the area or on your street, find out why.

While it may just be that the demographics are changing – such as empty nesters downsizing and making room for younger families – there could be more serious issues at the hub of all the for sale signs. Tanking property values or an increase in crime are issues you’ll definitely want to know about before you put an offer on a home.

Plenty of Empty Storefronts

Like the For Sale signs on residential properties, too many vacancies in commercial units could also be a sign that a particular neighborhood is not doing so well. Bustling businesses is a good sign in neighborhoods, but entities that are either going out of business or are bailing on the area for a better one is not a good sign of a healthy neighborhood.

All the Homes Look the Same

If you’re considering buying in an HOA community, take a look at how uniform all the houses are. While HOAs typically have restrictions about what homeowners can do to their exteriors, too much uniformity might be a sign that there is little wiggle room to deck out your home the way you’d like to.

Music is Playing in All Rooms

Having music played during showings or open houses might be fine, but it could also be used to mask any noise pollution in the area, such as a nearby train, planes flying overhead, or the neighbor’s dog barking.

Neighbors’ Homes Are Poorly Maintained

Speaking of the neighbors, look at how they maintain their properties. If they’re unkempt, that could affect the value of the property you intend to buy.

The Bottom Line

Buying a house is a big deal, so make sure you take your time scoping out different properties and the neighborhoods they’re located in before you make an offer. There’s a lot of money at stake, so you want to make sure that the house and the area you buy into are exactly what you’re hoping for without any unpleasant surprises down the line.

With the price of homes as expensive as they are these days, it can be tough for anyone to get into the housing market. Young adults who are just venturing out of their parents’ homes in hopes of getting a place of their own typically face sky-high real estate prices. And those who are graduating college typically have a huge student debt loan to pay off on top of all other living expenses.

It can be a big challenge to save up enough money for a down payment on a home, let alone all the closing costs associated with buying a house, the furniture needed to outfit the place, and the ongoing operating fees.

Let’s face it: being financially capable of buying a home when moving out of a parent’s home can be a major financial feat.

In many cases, young adults need their parents’ help to secure a home and a mortgage. Doing so can give them a big head start in life. An increase in housing prices and mounting student loan debt can be major obstacles that parents can help overcome.

But how can parents help their grown children buy a home when they’re trying to juggle their own mortgage and daily expenses? Of course, helping adult children buy a house is no simple feat. You’ll definitely want to carefully plan your strategy to assist your kids when they’re ready to fly the coop.

Here are some suggestions to follow to help your kids get into the housing market.

Buy a Home and Let Your Child Rent it From You

Many young adults end up renting when they leave their parents’ homes simply because they do not have the financial resources or credit history to secure or afford a mortgage. But rather than them paying rent to a stranger, they can rent from you instead.

If your current finances permit, consider buying a home for your child in your name and renting it out to them. While this is certainly a huge financial undertaking for you, you may be eligible to deduct your mortgage interest, property taxes, repairs, and certain home improvements come tax time on your “rental” property. Plus, the rent that your child pays you can cover the mortgage.

Buy a Home Together

If your adult child is working and has some level of credit established, consider buying the home together. Two working parties should have an easier time securing a mortgage for a home than a single working individual. If you take this route, you’d each share a certain stake in the home, depending on how you divide the equity. 

If at some point, your child is ready to take over the house on their own, you’d sell them the share that you had in it. Just make sure that your child is financially capable of holding up their end of the bargain in terms of paying their share of the mortgage and all other operating expenses.

Co-Sign the Loan

Your adult child might have a steady job and the money to comfortably cover the mortgage as well as a hefty down payment, but that doesn’t necessarily guarantee mortgage approval. Lenders will want to check out their credit history, and if your child doesn’t have any credit built up yet – or has bad credit – it might be tough or even impossible to secure a mortgage.

If that’s the case, you may have the option to co-sign on the loan. In this situation, you would sign your name on the mortgage along with your child’s. As a co-signer, you would be responsible for making the mortgage payments in the event that your child defaults on the loan.

You’ll want to make sure that your child is responsible enough to make the payments on time and in full every month and that you have the finances available in case you ever have to step in to take over the home loan.

Cover Closing Costs

On average, buyers spend about 2% to 5% of the purchase price of their home in closing costs. This can amount to a hefty bill. If you can afford it, consider helping your child come up with the money needed to cover these costs, which typically includes appraisal fees, mortgage application fees, home inspections, homeowner’s insurance, and property taxes.

Give a Down Payment as a Gift

If you have access to cash – or have sources that will allow you to liquidate your money – consider gifting your child the down payment for a new home.

According to the National Association of Realtors, nearly one-quarter of millennials used a monetary gift from their family or friends as part of their down payment.

But giving your child money to cover their down payment is not as clear-cut as handing them a wad of cash. There are rules that need to be followed in order to provide a paper trail proving that the money being provided is indeed a gift to be used towards a down payment and not a loan. Such rules may vary from one lender or mortgage product to the next.

If the money being provided is classified as a loan, your child will have to pay taxes on it. On the other hand, taxes on gift money can be deferred up to $15,000 per child (or $30,000 for couples gifting their adult children). Be sure to speak with a tax specialist to determine whether or not any taxes apply in your situation.

Ideally, the gift should be made at least a couple of months in advance of the mortgage application. There might also be some paperwork to sign verifying that the money is a gift and does not need to be paid back.

The Bottom Line

If you can swing it financially, you’d be doing your adult children a huge favor by helping them out when it comes time to buy their first home. While renting is always an option, buying and owning property comes with its own unique benefits. Getting into the market sooner rather than later can help your children start building equity and can even help them establish strong credit with every mortgage payment they make.

If you want to attract buyers to your listing, staging it is a great way to start. Obviously, the interior of your home needs to be show-stopping, but so does the exterior. In fact, curb appeal plays a key role in how quickly your home will sell.

Consider this: buyers will first see the outside of your home before they make it to the front door. As such, you want to do what you can to make sure your home is inviting and attractive enough to entice buyers to want to see what’s inside.

As important as boosting curb appeal is when listing your home for sale, you don’t exactly have to break the bank to make improvements. In fact, there are several affordable ways to enhance the look of your home from the exterior.

Wash Everything

Your windows, walkways, driveway, porch, deck, siding, brick walls, and even your mailbox could probably use a good thorough wash before you plant your For Sale sign. If you have one (or can borrow one), take a pressure washer to the surfaces of your exterior. You’d be amazed at what a difference a few sprays can make.

Make Minor Repairs

Whether the gutters are a little bent, a light bulb is burned out, or a couple of bricks are crumbling, these little issues can be noticeable to buyers. If you have the know-how, make these repairs yourself. Or else, call a local handyman to make these updates for you.

Paint the Front Door

A can of paint will only cost you a few bucks, but a new coat of paint can make on your front door – and the overall look of your home’s exterior – will make it look like you’ve spent thousands. Choose a color that goes well with the rest of your home’s color scheme while making your home stand out, in a good way.

Install a New Door Knob

If the hardware on your front door is looking a little tired, change it up. It doesn’t cost much to buy yourself a new door handle, but such a seemingly subtle change can really update the look of your front door.

Add a Welcoming Doormat

Not only does a doormat with a cheerful slogan make guests (and buyers) feel welcome, it can also help to spruce up your home’s exterior.

Update Your Mailbox

Another seemingly insignificant exterior detail is your mailbox. If yours is getting up there in age – or at least looks like it is – consider either updating the one you have or swapping for a completely new one.

Install New House Numbers

You can quickly boost curb appeal with brand new house numbers, especially if the ones you have right now are old and worn out. Go for finishes that match well with any exterior lighting you may have.

Add Home-Made Shutters

While some shutters can be expensive to install, you can add faux shutters at a fraction of the price. And the home improvement store that you get them from will even cut them to size for you.

Edge Your Walkway

If your front yard has a walkway leading to the front door, spruce it up with some edging. You can literally choose from a myriad of materials to use for this job, including flowers, interlocking stones, or Riverstone to add some definition.

Cover Exposed Foundation

Many homes have a portion of their foundation exposed underneath their siding or brick. If that sounds like your home, cover up that exposed concrete with some easy-to-apply stone panels.

Trim and Weed Your Lawn

Probably the cheapest thing you can do to improve your lawn is to make sure the grass is trimmed and the weeds are plucked. Just be sure that you don’t let the grass or weeds overgrow while your home is on the market.

Plant Some Flowers

A common yet effective way to boost curb appeal is to add some colorful flower beds to your front lawn. They’re easy to plant and can be added in such a way to make your landscaping as unique as you’d like it to be.

Install Flower Boxes Under Windows

Don’t limit your flower planting to just the ground. Adding flower boxes under window sills can be an affordable way to add a pop of color to your home’s exterior.

Add Potted Plants

If you don’t feel like planting anything directly into the ground, you can still add plenty of natural beauty with potted plants.

Add Patio Furniture

If the space permits, consider adding a couple of outdoor patio chairs to flank your front door and spruce up your front entrance. If you really want to save some money, consider buying from a second-hand store, repainting the frame of the chairs, and adding your own cushions in a bright and cheerful color.

Update Exterior Lighting

Don’t underestimate the power of exterior lighting to curb appeal. If your lighting has seen better days, consider updating it. Even just a couple of exterior lights on either side of your front door or garage should do the trick.

The Bottom Line

Curb appeal plays an important role in the overall staging of your home. If you want to attract as many buyers as you can and get a decent offer quickly, boosting your curb appeal is a must. And with these ideas, you can make a huge difference in your home’s exterior with very little money.