Michigan Real Estate

Whether you are a new or experienced Real Estate Investor, one of the first things you will learn is to always do your own due diligence. Well what exactly does this mean?
Doing your own due diligence means taking the time to learn, study, review, check-out, and investigate a certain business or deal prior to your commitment to purchase, in order to make sure the business (or deal) is everything that you thought it was.
When it comes to investing in Real Estate, due diligence is used in several different ways. You will often see the term due diligence used when analyzing a deal or a property (again, prior to purchase). This will include not only the renovation work that needs to be done but the costs of the materials and labor of the renovations as well.
Due diligence includes making sure you have used the necessary tools to gather comparables (comps) in order to determine the fair market price or after repair value. Other items on your list include making sure you are fully aware of any current or past tax or title issues, as well as knowing about the current zoning, floodplains, easements, etc.
Further due diligence is required for landlords who are purchasing a property to buy and hold especially if those properties are already occupied. In this case, due diligence will include inspecting not only the properties themselves but the current leases, rent rolls, and security deposits. If applicable governmental such as section 8 approval certificates may have to be looked into as well.
One important issue that many new Real Estate Investors seem to forget about is the importance of doing your own due diligence when it comes to working with other Real Estate Investors, no matter how friendly or experienced they are.
One of the benefits that the REI for Newbies Insider’s Club members have is the ability to email me with any and all questions that they have. I recently received an email from a new real estate investor who was really excited about the possibility of finally purchasing his first rehab. He found the property through another investor who had too many so he was unloading some of them. Turns out that after all was said and done this would have been a terrible deal for a new real estate investor.
The numbers that the experienced investor provided to the newbie were simply not entirely on the up and up. While I am sure that he meant no harm, this could have ended up being a really big problem for the new investor.
You see the experienced investor told the new investor that he could be in and out, meaning the property could be ready for market in less than 4 weeks. But what he failed to remember was that the experienced investor already had his team assembled while the new investor was starting totally from scratch. The new investor had to first start with finding contractors and getting estimates.
Not only that, but the experienced investor had his real estate license so his costs to resell the property were not going to be as high as the new investor who is not licensed. Overall, the numbers were just too tight for someone who was brand new. Luckily the new investor took a step back and avoided being a motivated buyer.
By the way, I have seen many experienced investors specifically say that they have an extra property that would not be good for a newbie. Generally speaking this is the type of experienced investor circle that newbie investors want to become a part of.
The bottom line is that all Real Estate Investors, no matter how experienced or not, need to do his/her own due diligence no matter where or who they get their leads from. Always remember that no one is going to protect your business or your potential profits like you will.

For those looking for a good realtor in the San Diego area, they should know that it is a competitive market.

www.Realtor.com is a website that offers information about homes, neighborhoods, an realtors in the area. They claim to give the best and most current directory of properties in the San Diego area.

Some of the information that can be found on the website includes a wide listing of properties both nationwide and in the area. It comes with photos, descriptions, maps, and information about the community.

There is also a link to the National Association of Realtors. They are the headquarters for the San Diego Association of Realtors and have a strict code of ethics.

The site also gives information that one needs to find properties in the area from everything from real estate information to how to sell a home and finding a mortgage lender.

There is a saying that 20 percent of the agents do 80 percent of the business and that is true. When looking for a realtor, it’s important to find the one that’s right for you.

An important thing to know is that although all realtors are licensed to sell real estate as an agent, they are not all realtors. Only those who have pledged themselves to the Realtor Code of Ethics and are in good standing with a Realtor Association as members can claim that. Associations can tell you if the Realtor is in good standing or not.

Never forget the power of friendship. Talk to your friends and family, colleagues who have sold or are selling property and see who they like to use for it.

Many websites out there can refer people to agents, however, the quality assurance may not be there. Their agents are ones who have paid the web site owners a fee to be placed in their directories. It’s always a good idea to check out google and view the real estate agents in the area and then go to their web sites and check them out there.

A great idea is to go to an open house where you can talk with agents in a more casual atmosphere. Make sure to get business cards and notice how they do their business, particularly if you’re planning on selling a home. Are they knowledgeable and professional and do they hand out material about the property?

Watch for the listing signs in the neighborhood. Watch for the day they go up and the day it’s sold.

Realtors run ads in newspapers for two reasons. One is to sell specific properties and the other is to promote a particular agent. A good place to look for this is the Sunday paper for ads in a targeted neighborhood.

Agents are often more than willing to refer buyers and sellers to their own associates. Some of them specialize in residential sales, while others work with new home builders. Still others only work with commercial property.

The state capital of Arizona, Phoenix is one of the largest cities in the entire US and a true center whereas economy, finances, technology and culture are concerned. The city continues to expand and attract an increased number of people, some arriving to the city as tourists and becoming residents after a short period of time. For them, the Internet has represented the first place where they found out about living in Phoenix. And when it comes to finding cheap real estate, there is no better place to start hunting than online!Some of the best deals on real estate can be found thanks to the introduction of Phoenix foreclosure listings. Phoenix contains plenty of properties for prospective buyers, all looking to transform this wonderful city into their home. With hot summers and temperate winters, the tropical city of Phoenix contains everything one desires and even more. Phoenix foreclosures homes are presented online through specialized companies, advertising them for prices below the market value. Whether these properties are sold at public auctions or special sales, the end result is the same. Someone becomes the proud owner of a cheap property and is ready to start a new life!Phoenix is also known as the “valley of the Sun”, having gotten this nickname due to its being surrounded by mountains on all sides. This has made Phoenix quite popular among prospective homebuyers and contributed to an increase of property sales on the real estate market. With the aid of the Internet, those that were interested got the opportunity of searching through Phoenix foreclosure listings and discover all sorts of options. Phoenix foreclosure homes include, among other choices, government homes, federal-owned properties and houses that have been repossessed by diverse banks. All these properties are quite easy to purchase and anyone can become an expert whereas Arizona real estate is concerned.Once you have decided that Phoenix, Arizona, is going to be the location for your home, then you will have to examine and consider with attention Phoenix foreclosure listings. A careful examination is essential when it comes to finding the right Phoenix foreclosure homes. You will have a comprehensive list of distressed properties but the essential thing is that you do not jump on the first offer. Try and make a selection first. Think about the type of property would suit you and your family. Phoenix foreclosure homes include condos, single-family homes, town homes but you can also find diverse commercial properties in case you’re planning on investing in Arizona real estate. Take your pick; there are some pretty incredible savings to benefit from.Many people are interested to buy HUD or VA Phoenix foreclosure homes. They search through Phoenix foreclosure listings in search for such properties for sale and hope to find the best prices. And indeed they do. Plus, they have the advantage of finding detailed info for each property in part. This information often includes the address of the property, number of square feet, bedroom/bathroom details and photos. There are two main types of buyers interested in HUD foreclosure homes. The first are the ones who plan on moving on the property and becoming permanent residents. Second, we are talking about investors looking to make a profit from purchasing cheap HUD Phoenix foreclosure homes. Nevertheless, the first category tends to be favored whereas HUD homes are concerned.What does Phoenix have to offer that makes it so attractive? Well, life is beautiful in Phoenix. Green spaces all around, comfortable living and stunning properties are presented. Home prices continue to decrease while the number of foreclosed properties seems to be on constant rise. The housing market is finding itself at the perfect moment for those who intend to purchase cheap Phoenix foreclosure homes. Repossessed homes are selling indeed.

The credit crunch is fueling the popular belief that investing in today’s real estate markets is a strategy reserved exclusively for wealthy entrepreneurs. This is absolutely false: You don’t need any cash or credit to make a killing.

Generate Cash Flow with Common Sense & Solid Strategies

There are some especially high-performing strategies that are geared for today’s market conditions that require no cash or credit and will maximize your investment returns (ROI). All that is required is a keen eye for uncovering the high-equity real estate deals that spark business growth and the sound strategies that will fill your pipeline with the leads you need to keep the deals flowing.

Why? Because by definition, high-equity properties carry low — or no — mortgage debt. As a result, there are fewer complications and hazards that can slow your deals down and clog your business pipeline. It’s no secret: In this business, delays can cost investors valuable time and money.

Credit Crunch Strikes High-Equity Homeowners

Even among the 24 million homeowners who bear no mortgages on their properties, one-third of them are soon likely to find themselves underwater in these properties. There are many social and economic factors currently at play to imperil homeowner equity, among them are:

The Truth about the Credit Crunch in Today’s Markets

Due to the credit crunch, many high-equity homeowners are likely to encounter new challenges in getting the credit lines they need to help them through the rough spots. This is likely to intensify as overall U.S. economic conditions worsen.

Investing in properties that have minimal mortgage burden is a great hedge to protect investors from inflation. This concept is appealing to a growing number of entrepreneurs who’ve been watching the U.S. economy lately.

Mine for High-Equity Deals with Premium Real Estate Marketing Tools

Even in the Information Age, it is easy for investors to get lost in the challenge of generating the leads they need to advance business growth. In this arena, the proven method of real estate marketing via direct mail emerges as a time-efficient and cost-effective option for getting laser-targeted leads on a consistent basis.

Combined with the relative ease of buying houses with equity, real estate marketing via direct mail emerges as a winning strategy for investors. And, because of limited competition and broad reach, this strategy finds the solid high-equity opportunities wherever there is a property that’s worth more than the seller owes in mortgage debt.

With high-equity real estate deals, investors can offer sellers attractive options and also benefit from greater flexibility in how transactions are structured. For example, investors can offer sellers fast cash in exchange for a reduced price, pay for the property over time with a note, or even delay payment until the property is refinanced or sold in the future.

Max-Out Your ROI: Deploy Direct Mail Marketing in High-Equity Markets

There are five major real estate market segments that offer investors the greatest opportunities to access equity. Use sound marketing strategies, such as direct mail marketing, to tap these markets and boost your bottom line.

In many cases, investors can build their own mailing lists based on information housed in public records. Because this information often changes and quickly becomes outdated, many investors choose to outsource their real estate marketing to save time and money on postage.

Using direct mail allows you to systemize and automate your lead generation. This can save you valuable time and money in the investment trenches. There are other benefits to outsourcing your real estate marketing, which we’ll explore later in this article.

The Cream of the Crop: Five High-Equity Markets for Hungry Investors

1. Adjustable Rate Mortgages (ARMs) with Equity: Homeowners in this segment typically had an ARM for three years or more before the date of sale. If they owe less than 70 percent on the loan relative to the house’s value, these homeowners with equity may be looking to escape their loan commitments before the mortgage resets. Direct Mail Real Estate Marketing Prescription: Send an optimized, monthly mailing starting with an optimized real estate marketing letter, and then mail three real estate postcards. Repeat the process for desired results.2. Free and Clear: To boost profits in this segment, target homeowners with 40 percent to 100 percent equity. U.S. Census Bureau data reveal that property owners in this arena currently control one-third of all single-family homes. Often, they’re near or at retirement age, are empty nesters and are looking to downsize. Direct Mail Real Estate Marketing Prescription: Once you’ve got this list, mail cost-effective real estate marketing postcards every 90 days.3. Multi-Family with Equity: Zero in on sellers with 2 or more units with a maximum loan-to-value of 70 percent or less to buy, hold or flip income properties. High-equity property owners often are motivated to by tenant management and maintenance headaches. They also may like the idea of financing the investor’s purchase if they also can benefit by deferring capital gains taxes and generate cash flow through a note rather than through rent. Direct Mail Real Estate Marketing Prescription: Mail an optimized real estate marketing letter every 90 days. Afterwards, send 3 real estate postcards and repeat the process until desired results are achieved.4. Absentee Owners: Also known as out-of-area owners, this segment of homeowners has a mailing address on public record that differs from the property address. It includes weary and stressed-out landlords with single-family homes and multi-unit properties. Direct Mail Real Estate Marketing Prescription: Get this list from pouring through county records or from real estate marketing professionals. Send real estate postcards every 90 days and update your list after each subsequent mailing. Revisit your list after a year or more has passed to evaluate the data and your real estate marketing campaign’s success.5. Wholesale Properties: These properties are typically about 20-years-old and tend to have deferred maintenance issues and cosmetic challenges. In this category, homes with loans that come in at about 70 of a property’s value can be prime targets for savvy real estate investors.

Direct Mail Real Estate Marketing Prescription: Send an optimized, monthly real estate marketing postcard for 6 months. Afterwards, deploy a 90-day drip campaign.

To Outsource, or not to Outsource?

Not only is effective marketing a mystery for many investors, it is costly, tedious, time-consuming and for many — it is a shot in the dark. Many investors choose to outsource their real estate marketing to minimize these problems — and to benefit from the professional experience and expertise that only a first-rate company that specializes in direct mail real estate marketing can provide.

What to Look for when you Outsource

If you do decide to outsource your marketing, look for a reputable company that specializes in direct mail real estate marketing. In most cases, the workload reduction, superior leads, optimized results and overall headache reduction more than covers the costs. But selecting the right company for the job is critical to your success in the high-equity — or any real estate investing arena.

A great real estate marketing company should have the best lists for any given market segment. The firm should be familiar with what type of mailing (such as postcards or letters) should be used and how often each mailing should be sent to attract your desired response. From experience, they also should be able to tell you how to optimize your mailings to attract the best, most qualified leads.

When you outsource your direct mail real estate marketing, you should receive quantifiable results in your ROI. This includes real-time reporting on the effectiveness of your mailings. In addition, your lists should be regularly “scrubbed” of obsolete and outdated addresses to save you money on postage.

If the marketing company leverages its high-volume business to secure discounts on mailings for investors, you’ll likely know you’ve likely got a good candidate on the line to handle your business marketing needs.

Cheap property for sale offers Mr Average a way to build wealth and build wealth quickly.

If you can buy cheap property for sale in the right areas there is no better way to build wealth with low risk.

Let’s look at some rules for buying cheap property for sale and how to turn them into expensive property for sale and make big gains!

1. look overseas

We now live in a global economy and people are travelling more than ever and home purchases by North Americans and Europeans in countries outside of their country of residence are at an all time high.

Why?

Because property is cheaper and many people want to get an affordable second property and in most cases its sun, sea and sand that attracts them and an ocean view, so this is the type of property to focus on.

Buy in the right places and you will find that making 30% per annum is common and 100% per annum is achievable.

2. Buy an established location

If you are looking to buy cheap overseas property don’t buy the cheapest!

Why?

Because it’s cheap for a reason no one wants it.

You can get some great deals in Haiti at the moment but don’t bet on making any money.

Look for a market that is cheap in relative terms and but is showing rising overseas investment and an established track record of having made some gains.

Good examples are Panama and the favorite of most Americans Costa Rica. These countries have had several years of booming prices but there is still more to come and its a safe investment in terms of local law.

Keep in mind property boom markets rise for decades not just a few years.

With ocean view property still 70% below equivalent property in the US There is still plenty of upside.

You can be a pioneer and buy a new hot spot, but remember some pioneers got rich, however most got arrows! Play it safe – There are still big profits to be made without taking unnecessary risks.

3. Location, location, location!

Even in boom countries you can buy property that will never rise in value. The best way to buy is to look at the infrastructure that’s coming.

Look for expanding infrastructure such as roads, marinas and airports, that will attract people to the area. Get in quickly and buy cheap property for sale before it rises in value.

When the herd come you can sell out at a profit.

Never buy a location simply because you like it – Pick one that has sound reasons behind it to rise in value.

4. Cautions

When buying cheap property for sale make sure you get local help.

Property laws and customs vary and in many countries you may find out that your property for sale investment is not secure and tat different rules apply to overseas buyers.

Play it safe and look for countries such as Costa Rica that give you the same rights as residents.

In conclusion get local help it will save you money in the long run.

Cheap property for sale overseas offers huge gains that simply are not available in more established countries so to make money in property take a look over the borders and you will see many great investments in cheap property for sale that could make you serious money.

The Costa del Sol, Spain was the favoured destination of most Northern European’s who were looking to buy a property investment in the sun, a good example is the popular resort area of Calahonda about 15 minutes from Marbella, in 2001 a nice two bed apartment, of about 100m2 was roughly 120,000€, by 2006, in the same area, a newly constructed two bed apartment had shrunk to 75m2 and was roughly 250,000€.

 

Tales of gold and glory were sold to the property investors, now many of these home owners are left looking at their investments standing still, and in some cases decreasing in value as the property market slides downwards after years of growth.

The Spanish property market during its boom time reflected the healthy and positive economic mood of the whole of Europe, examples such as Ireland riding high on its aptly named Celtic Tiger and the UK experiencing a strong currency exchange rate against the Euro, fed the Costa del Sol with thousands of buyers, many who purchased in multiple units. So as demand increased so did supply, to the point of saturation. Locally the demise of the Costa del Sol property market was caused by a glut of properties on the market, and the icing on the cake was the general world recession which has dried up the stream of buyers.

Those who bought at the height of the boom were left with properties estimated to be 30% over priced. Those who bought before the boom, were left competing with thousands of other properties of a similar ilk, and the only way to compete was to drop the price.

Now we are seeing prices fall as much as 25% in many cases for some outstanding properties, a good example would be a two bedroom, 100m2 unit in La Quinta one of Marbella’s most sought after addresses, initially priced at 299,000€ this is now on offer for 219,000€, parking, storage and fully furnished.

 

Or take this apartment, just 10 minutes from the play ground of the rich and famous Puerto Banus, a 3 bedroom unit 125m2 with spacious terraces reduced a stunning 41% from 475,000€ to 277,000€.

 

 

For those who can put their hands on cash now, or accept lower than usual mortgage lending amounts from the banks they can certainly snap up a bargain. We are already seeing investors and speculators with cash to spend picking off the best distressed units. 

The market will eventually revive on the Costa del Sol, Marbella and its surrounding locations will always be a popular destination for many, with its mild climate and vibrant night life, here is a location of sun, sand and fun for people of all ages. A golfers paradise and a shoppers dream, Marbella has had its ups and downs over the decades but it will never lose its charm as one of Europe’s most popular holiday destinations and now that the property prices are at their lowest since 2002, now would certainly be a good time to take a better look http://www.alandahomes.com/resale-property-marbella.html

 

While many people prefer to sell their homes themselves, and avoid giving a Realtor® commission fees, the truth is, selling a home is a challenging thing to do, and a professional Realtor® has a lot of benefits.

For starters, certified agents have a huge network of resources at their disposal to help them sell homes. They may already have clients already looking for a home. They will definitely have access to online and other networking markets, making it easy for them to promote, even internationally, a home that goes up for sale. Frequently, agents also have a network of other agents with whom they share resources. So choosing a professional agent isn’t like getting just anyone to try to sell your home. It’s a specialized profession for a reason.

Due to their experience in the field, a Realtor® might have some extremely valuable advice that will help sell a home faster, or for more money, than a lay-person may have been able to do on their own. For example, many agents know a lot of tricks about home staging, a technique proven to frequently create higher and quicker sales.

Not only that, they can recommend people to help with any renovations or fix-ups a home may need. When a service-person gets referred by a Realtor® again and again, they are highly likely to give a good rate to those using their services as a result. Plus, the Realtor’s experience with them proves that they are the best—otherwise someone whose reputation and livelihood was on the line (an agent) wouldn’t be using them in the homes they are selling.

Finally, some sales just don’t go smoothly. Depending on the property for sale and the people involved, clauses and loopholes can create confusion. There are a number of legal requirements that must be met in a home sale. There is also a lot of paperwork. A Realtor® knows what they are and can easily guide one through the process.

Also, remember that when a home is up for sale, lots of people might inquire about it, and even want to see it, whether they are serious about buying or not. A Realtor® can take responsibility for not only showing your home, but also weeding out the pre-qualified buyers from those that are just browsing. This can save a seller lots of time.

So while it may be painful to imagine giving a percentage of your precious equity away to a Realtor®, remember that it is an important service that is being provided. Most agents charge fair rates for the amount of time and effort they put into selling your home. And remember, an agent may be able to get you a higher sale anyway, in which case there’s more in your pocket in the long run anyway.

There are many things to think about when purchasing a home alarm system. Different types of homes, from single family homes to apartments to condominiums, will have different security needs.Things you need to consider also are your home’s specific attributes: the number of windows, if it has a basement or attic, whether you own or rent, and how many months of the year your home is occupied. When you’re choosing your home alarm system, you need to take all of these factors into account. Many people are under the misconception that it is unnecessary to have a home alarm system if they rent an apartment or condominium. To the contrary, these types of properties often experience break-ins and related crimes. On these types of properties, wireless systems are the most effective. There are two parts to a wireless system – the main keypad and a receiver that needs no special wiring at all; simply plug it into a phone jack. Each of the window and door contacts send signals to the receiver wirelessly. Wireless requires no drilling through walls and can be moved with ease. Furthermore, if you qualify under certain contract stipulations, some companies won’t charge you for transporting your system.People who own their homes can decide between a wired or wireless system, whichever suits them best. If you own a condo or town home, you can buy a wireless system in order to avoid having to drill through shared walls. Wireless and wired options can both work in single family homes depending on whether there is a basement and how the walls were built. Single family homes with less than 1,500 square feet and having drywall can use a wired system, because drilling will not damage too much of the wall and the alarm can easily be installed. Due to the damage that occurs when plaster or concrete is drilled into, homes with these types of walls, basements, or ceilings can greatly benefit from wireless alarm systems.For houses larger than 1,500 square feet, a partitioned system gives the owners the convenience of having more than one keypad and the ability to monitor specific areas of the home. When dealing with houses with two or more stories, you may or may not have to set up your home alarm system to cover both floors. It will depend on how many levels your house has as to whether or not you include the alarm system upstairs. You will want to include the upstairs if your windows are easily accessible from the outside of your home. If no windows are accessible, there is no need to add the system.

Emerging property markets that bear all the hallmarks of future success are really quite hard to find. That is until I looked at the case for Romania. It offers property investors all the future capital growth they would want from an emerging real estate market. But don’t take my word for it try following the multi nationals, they have all the resources possible to select the best markets in which to invest.

The car manufacture Ford recently invested in Romania by officially taking control of Romania Automobile Company Craiova, the former Daewoo operation. Fords commitment includes plans to boost the plant’s annual production capacity to 300,000 units and double employment to 7,000. Ford executives said the factory will assemble the Transit Connectin 2009 and a new small car in 2010. John Fleming, president and CEO of Ford of Europe, said the Transit Connect, a compact commercial delivery vehicle, will go into production in Craiova in mid-2009. The vehicle currently is built only in Turkey, but Ford’s assembly operation there is at full capacity. Earlier this year, Ford announced plans to begin marketing the Transit Connect in the U.S. in summer 2009.

Romania is proving to be a safe place to invest with high capital appreciation especially in the Bucharest area. The property market which offers homes at very low prices has in some areas of Romania seen bullish growth rates of 25% to 30% p.a. for the last 3 years. Romania is currently undergoing major infrastructural developments which will see further capital growth all over the country.

Real estate agents and many pundits say that the growth trend is expected to carry on for the next 5 years. Romania joining the EU January 1st 2007 along with the development of tourism on the Black Sea coast and in Transylvania, has secured the regions future in the years to come. It will have one of the fastest growing economies in Europe

The Super Highway between Constanta and Budapest which will go through Bucharest and Brasov will be a critical element in securing Brasov’s role in Eastern Europe on a long-term basis. Not to mention that low cost airlines fly to several cities in Romania lead by Wizz Air and Easyjet.

British citizens are increasingly purchasing properties in Romania either as investments or holiday homes.

Romanian property prices are very cheap in rural areas but you need to be prepared to spend some time and to have renovation expenditures for your property to achieve British standards.

Mortgages are now available for foreigners. Should you wish to buy a villa or a plot of land, you will need to set up a company which is a very simple process – your estate agent should assist you with it. Purchasing a new or off-plan apartment can be carried out in your name without necessarily requiring a company formation.

What is for sure Romania offers investors a one off opportunity to enter a market in its infancy. Readers of my articles will know that my firm belief is that profits are not just made on sale but on the purchase price. This is why Romania has a compelling case for overseas property investment but you will need to get your skates on.

Arizona State has a fast growing population as shown by population statistics taken in 2006, which means that people are interested in relocating or coming here for better business and employment prospects. The state’s economy is poised for growth and this factor will reflect positively on the real estate market. Making a home investment here is a good option, because the value of real estate will rise in the years to come.

There are different types of home properties available in Arizona. As of right now with the growing population and the real estate market in a dismal place my people have been staying away from the traditional single-family home and sales for condominiums have increased.

Condominiums in Arizona offer great value for your money, with spacious home designs and the latest in interior design. Interested buyers will find various types of condo units ranging from one to three bedroom units that may or may not include a patio and much more. Many condo units offer facilities such as swimming pool, tennis court, gym, elevators and areas for relaxing and hanging out. These common areas are great places for residents to meet each other. Buyers should check out such facilities to choose a condo unit that has the exact feel that suits their lifestyle.

Buying a condominium is a good investment option because condos can offer easy maintenance home options. The owner’s right to property begins from the interior of their condo unit door and they have to look after just this area, while outer areas and home exterior areas are maintained by the maintenance staff. All owners in the building have to contribute maintenance fees for the common areas. Every condominium building has a Home Owner’s Association (HOA), which lays down rules that all residents must follow.

When considering the purchase of a condo unit, it is important for buyers to look into HOA rules. The rules put forth by the HOA must be acceptable as with the maintenance fees. Another point here is insurance, homeowners must take out a home insurance policy to cover the interior sections of the home, while the HOA will take insurance to cover any damages to the common areas.

Q: What is a condominium?

A: A “Condominium” is a form of ownership and also a style of dwelling. In fact condo’s come in many forms. A condo can be one of two or more units under one roof or a townhouse, an updated or remodeled former factory, firehouse, mansion etc. It can also be an apartment in a high-rise, one side of a duplex or other unique arrangement.

Q: What are the different types of condos?

A: Condominium A Single unit, most often resembling a more finely finished apartment or loft. Locally these are found in complexes large and small, high-rise or low-rise. Owner has title to interior space of unit and shared title to common areas in the complex. Condominiums are governed by a condominium board of directors (voted by residents) in accordance with the bylaws and covenants, conditions and restrictions.

Q: Who takes care of maintenance?

A: Condominium owners form and belong to an association that takes care of tasks such as roof maintenance, siding, upkeep, and grounds keeping. The association owns and maintains common areas which might include tennis courts, party rooms and swimming pools.

Q: Where does the money come from for these things?

A: Owners pay maintenance fees to the association for upkeep and to create a reserve fund sufficient for important projects such as roofing replacement. Owners serve on the association board to establish and enforce rules. Some associations might be very strict about what owners can and cannot do. Make sure that you look over the rules and regulations before you commit to a purchase. Many condo’s have pet restrictions and rules against renting out units.

Q: What about homeowners insurance?

A: Your condo association has a master insurance policy that covers the outside of the building’s structure, including the roof and common areas from the pool to sidewalks. The master policy will not insure the inside of your particular unit or any of your personal belongings. You must take out a separate homeowner’s policy to cover these things.

Q: Do condos prices rise in value as fast as single-family homes?

A: The Northwest Multiple Listing Service reports condo value trends rising as fast as or faster than single-family properties. These trends can change but for now condos look like a good buy for many years to come.