If you’re in the market to buy a condo (make sure you don’t forget the
You should have your own real estate agent
Finding condo listings online is easy since they’re almost all listed on realtor.ca. If you want to view a property, you can simply contact the listing agent. That said, it almost always makes sense to hire your own realtor first. You’ll want to do this because you’ll want someone working for you. Relying on the listing agent doesn’t benefit you, as the agent may simply wish to make a quick sale.
When choosing a real estate agent, you want to work with someone you feel comfortable with, and has knowledge in the areas you’re interested in. Working with a friend who does real estate on the side may be tempting because they’ll charge a lower commission, but their inexperience may cost you more in the long run.
Pre-tour research is required
Before booking condo tours, you need to establish some parameters to help you narrow down your choices. Things such as cost, size, parking, fees, and neighbourhood are all considerations. Fortunately, your real estate agent can set up automatic alerts so you’ll be notified when a condo that meets your requirements is listed.
Be sure to talk to your agent and make a priorities list. Rarely will you find a unit that meets all your criteria, so you’ll likely need to make some compromises somewhere. Also, don’t be afraid to ask your realtor for advice about different areas or buildings that might suit you.
Understand that you may be disappointed
Even if you do all your research, there will be times when you enter a unit, and you quickly realize that it’s a hard pass. The unit may have a weird layout that isn’t obvious in the listing, be in bad condition, or have a view directly into another building.
Real estate agents will always put their best foot forward, so the pictures you see online may not reflect reality. Unfortunately, this happens, so it’s best to quickly move on.
You may only have a few minutes to tour things
Technically speaking, you’ll have at least 30 minutes to tour a unit, but in most cases, there’s not much to see since condos are just a few rooms. That said, once you’ve entered a unit that has potential, you should immediately start paying more attention. Look for details such as the condition of appliances, fixtures, and finishes. Also, think about how much any potential renovations will cost you.
While viewing the unit again before making a bid may be possible, there’s no guarantee the property will be available later. It’s crazy to think that you’ll be bidding hundreds of thousands of dollars on something you’ve seen in just a few minutes, but that’s how it can work when you’re shopping for a condo.
There’s a possibility you may not see everything
Even though you have a condo tour booked, there’s no guarantee you’ll see everything. For example, you may be unable to view the parking spot and locker. Additionally, building amenities such as the pool, gym, library and so on might be accessible, but you may need security to let you in.
Try to view all the common areas and pay attention to the security features and general upkeep. It’s also worth walking around the neighbourhood to get a better feel for how you would fit in if you were to purchase a unit.
Additional research will be required
If you’re happy with the condo tour, you may want to put in an offer right away, but there are a few things you’ll want to discuss first. Talk to your real estate agent and find out the maintenance fees and what they cover. High maintenance fees can be problematic from a cash flow perspective, but low fees may signal that the condo reserve fund is underfunded.
Even with potential flags, there is still an opportunity to protect yourself. When making an offer, have your real estate put in a condition that allows you to review the condo documents. This allows your real estate lawyer to examine the condo corporation, board, and funding details. If your lawyer is satisfied with all the documentation, you can waive the condition and make the offer firm.
Final thoughts
A condo tour is usually necessary when making a confident purchase decision. Generally, if you can imagine yourself living in the unit immediately, you’ll want to pay more attention during your tour. Some people will rush to a decision since they may be worried about current market conditions, but that’s not the best strategy. At the end of the day, you want to choose a place that makes sense for you.
Barry Choi is a Toronto-based personal finance and travel expert who frequently makes media appearances. His blog
Money We Have is one of Canada’s most trusted sources when it comes to money and travel. As a completely self-taught, do-it-yourself investor with no formal training, he makes money easy to understand for all Canadians. His specialties include personal finance, budget travel, millennial money, credit cards, and trending destinations.