Guide To Buying A Condo In Portland ME
Are you considering buying a condo in Greater Portland ME? What is a condo? The term condo means “governed by a board of managers,” it is not a style of home. A condo can be a multi- unit dwelling that has individual apartments, a low, mid, or high-rise building, and even a townhouse. These are styles of condos. In Portland, the type that is situated in a multi-unit dwelling and townhouse are most common. You will find them sprinkled throughout the various neighborhoods; Munjoy Hill, East End, West End, Old Port, Downtown, North Deering, Deering Center, Parkside, Rosemont, Arts District, Back Cove, Bayside to name a few.
When a multi-unit is converted to a condo, they are usually self-managed until all the units are sold. Then the owners can decide whether they want to hire a management company to take over or continue self-management. As an owner, you will be responsible for whatever is inside the four walls aside from personal property. Along with yearly property taxes, you’ll pay monthly common charges that cover care and maintenance of the common areas, snow removal, sewer, water, and property management fee.
It is important to have your Portland Maine Buyers Agent research what is covered in the common charges and verify property taxes when buying a condo. This way you know upfront what to expect and can plan accordingly. Even though most condos are similar, there will be some differences such as parking, pet policy, smoking, and laundry options.
You have located the ideal condo, and it’s time to make an offer. If a local buyers agent is representing you, they will help you analyze the sold comps and formulate an offer based on what you think the property is worth. The type of financing you choose is a critical factor as the FHA (Federal Housing Administration) won’t insure loans for many condos. This is an important conversation to have with your loan officer before viewing properties. Since the FHA loan is very attractive to buyers that may not have a large down payment or have challenges with their credit, inquire about alternatives that may work for a condo purchase. Click this link to use the FHA condo look-up tool to see if a particular association is covered.
Another issue banks may have with a particular association is the amount of renters compared to owners that occupy the building. Renters bring down the property value in the bank’s eyes so the ratio must meet their requirements.
Once your offer to purchase is accepted you will be able to review the past two years of financial statements for the condo to ensure you are buying in a financially sound building. An association with healthy financial reserves is less likely to impose assessments. Other items you’ll receive are a resale certificate, declaration, bylaws, and rules & regulations of the association.
If you have any questions, please don’t hesitate to send me an email MyMaineAgent@gmail.com or give me a call on 914.406.9023. I will be happy to answer any questions even if we don’t work together.
Accredited Buyer Representative
Ocean Gate Realty – Portland, ME
Email – MyMaineAgent@gmail.com
Cell – 914.406.9023