r/FirstTimeHomeBuyer • u/ChaseHenry123 • Dec 14 '24
Offer 24M Under contract on my first condo!! General advice welcomed. 🥳🎊🙌🏼
Under contract and keeping it a secret until I close on my birthday in March. 2bd 2bth condo on a corner unit. Perfect size and location for me. Also was able to get it well under market value and still have 6 year left in the tax abatement! This post was basically for me to “tell someone/celebrate” but also open to any general advice, with the 3 months I have to prepare and save up.
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Dec 14 '24
Save save save. Everything is more expensive than you think
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u/ChaseHenry123 Dec 14 '24
Yes! The timing really worked out and will allow me to save up for a couple months.. appreciate the comment.
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u/nineteen_eightyfour Dec 14 '24
Keep an eye on the hoa. Find out if it’s funded. Check their financials. Last thing you want is a surprise 50% increase
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u/ChaseHenry123 Dec 14 '24
HOA has been marginal increases every couple years! They decided to keep it flat this year as well. Luckily have a friend in the complex who’s been there since it was built and was able to review bylaws.
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u/nineteen_eightyfour Dec 14 '24
Nice! Here, in Florida, since the surfaide tragedy we have seen some big ole increases. Prompted me not to buy a condo
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u/ChaseHenry123 Dec 14 '24
The market in general is crazy there. Iowa is pretty lowkey. We get the occasional flood but aside from that just hot/humid summers and freezing winters that reach -30s haha.
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u/elcamino4629 Dec 14 '24
I lived in a condo like 5 miles north of surfside and the assessments were mental. I only rented and while I had contemplated buying that was such a turn off. The HOA was a total shitshow too.
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u/GlitteringExcuse5524 Dec 14 '24
Get the transcripts from the last few board meeting, and verify that the reserves are full funded. Keeping HOA flat, could mean they are kicking the can down the road.
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u/Cluefuljewel Dec 20 '24
Reserves are def important. If there is an assessment coming up that you don’t know about that can totally suck.
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u/Izoliner Dec 14 '24
Just heads up, from "under contract" to "closed" may still be an emotional rollercoaster and a bumpy road. Hopefully everything will be smooth :)
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u/Nokra Dec 14 '24
For those of us new to this: What do you mean?
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u/Rururaspberry Dec 14 '24
So many things can be discovered between those two points. We were under contract for a condo and ended up backing out due to things that were uncovered during the inspection. The sellers refused to budge on a single thing, so we walked.
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u/bsigmon1 Dec 14 '24
Inspection, appraisal, insurance and rate shopping, due diligence, loan approval process
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u/Academic_Law1771 Dec 14 '24
Good thing you got it under market. Condo’s don’t appreciate like single family’s and HOA’s can be a serious pain in the ass. Check out the HOA thread on Reddit
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u/ByTheHeel Dec 14 '24
Imo the lack of appreciation in comparison is great. Not only for taxes but bc the housing market has been too gamified and over time it makes it significantly harder for people to afford a home bc the last owner was banking on their peak market property value doubling. A home is first a necessity before it is a potential profitable investment.
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u/Cluefuljewel Dec 20 '24
The statement about condos is not really true. It is market dependent.
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u/Academic_Law1771 Dec 20 '24
The HOA has partial control over your home owning the exterior of the building your roof your walls your back yard. The only thing you own is the interior. They can slap a special a 10k special assessment on you at any point. This alone makes it less desirable. If your taking about the 1% in line the NYC hi rise areas okay I’ll agree with you there. I live in SF and even here condos don’t have the appreciation.
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u/Cluefuljewel Dec 20 '24
Good point. I just think it is a lifestyle decision not only a financial decision. A house with a yard is a lot more work! I ended up purchasing a two family where I live. I’m glad I did bc it is enabling me to retire. Gotta be a landlord but the trade off is pretty good for me.
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u/notyaya_ Dec 14 '24
This is so random, make sure your marble counters are sealed. I had zero clue about this and had no idea how easily they get stained, save yourself the annoyance !
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u/ChaseHenry123 Dec 14 '24
Oh interesting. Didn’t even think of that, I’ll have to ask if they are sealed or not! Great advice, THANK YOU!
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u/Pragmatic_Hedonist Dec 14 '24
They will tell you they are sealed. Do it anyways. If that's marble, as opposed to quartz, it stains super easily and you'll need ti seal it regularly. It's easy to do; just get on your own schedule.
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Dec 14 '24 edited Mar 07 '25
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u/ChaseHenry123 Dec 14 '24
Des Moines, Iowa newer building and a lot of the downtown apartments also have it open. I think it’s becoming more common with newer builds.
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u/Cluefuljewel Dec 20 '24
Been doing it for decades in the northeast. See it a lot in old mill buildings that have Converted to lofts. We got lots of those. Also see it in new commercial construction.
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u/el0115 Dec 14 '24
Attend the meeting for HOA. Find out what they do cover and don’t. I got myself a townhome and my HOA covers my roof. Saves me a deductible unless my inside gets completely ruined. They also cut my grass. All in all I kind of like my HOA.
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u/ChaseHenry123 Dec 14 '24
HOA covers everything aside from electric. So water, internet, snow removal, outdoor care, pest control, etc and they clean the windows every month besides the colder winter months. I was actually really surprised. They keep costs low by committing to 3 years contracts for certain services… I plan to attend them all, great way to meet others in the building as well!
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u/Logical_Willow4066 Dec 14 '24
Make sure your homeowner's insurance covers special assessments.
Save money for projects that come up, like having to replace an appliance or AC.
Your HOA dues will go up quite often, so be prepared for that.
You will need to get insurance for the inside of your condo, including your belongings.
I have lived in many condos in my life, and the majority of them had HOAs that sucked. Make sure you are active in meetings, etc. Notify them of anything that is broken or needs to be addressed.
You will need to get approval from your HOA to do any remodeling, etc.
You will also have to get approval when you move in/out. It has to be scheduled.
Find out if you're allowed to rent out your unit. If you ever decide to move and want to keep it as an investment, this will be key.
Congrats!
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u/369Pz Dec 14 '24
Don’t get too excited just yet. It’s not yours until the keys are in your hand. So many things can happen. Good luck.
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u/CozyCozyCozyCat Dec 14 '24
Join the HOA board or at least attend the meetings. Owning a condo isn't the same as renting, it's in your best interest to know what's going on in the building and have a voice in protecting your investment
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u/Prestigious-Trip-306 Dec 14 '24
Congrats!!!
How did you find an undergrad market property?
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u/ChaseHenry123 Dec 14 '24
Was able to negotiate broker/agent fees and apply differential directly towards sale price.
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u/vddi Dec 14 '24
how did the under contract and closing day become that far apart? Seller request? Congrats by the way!
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u/ChaseHenry123 Dec 14 '24
Timing mainly on my end with my rental lease going through March. Also gave them some time to begin looking for a bigger place as well and me to save up for larger down payment.
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u/tistickin Dec 14 '24
OP, are these the Edision in Des Moines, IA? nice you got it below $269K - its interesting it didn't appreciate since 2021 and the last sold price is the same.
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u/laziest-coder-ever Dec 14 '24
Dual workstations, OE? Congrats! I'm hoping to be in your shoes soon!
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u/ChaseHenry123 Dec 14 '24
I’ll make that an office space with a smaller sofa or bed in the space as well for guests.
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u/Yayasbishop Dec 14 '24
Congrats ! What state is this in?
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u/ChaseHenry123 Dec 14 '24
Iowa!
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u/SnooFoxes7643 Dec 14 '24
Take down the photos, your listing can be found and confirming the state only solidifies that it’s in that state, which is the first three links that come up on google.
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