Investing in a luxurious property like an Akoya condo is not just about the buying decision but also the process leading up to it. With its prime location in Miami Beach, Florida, Akoya Condos for sale offers a harmonious blend of luxury, comfort, and scenic beauty. Here’s a step-by-step breakdown of the buying process to help you navigate the pathway to owning an Akoya condo.
Things to consider before buying a condo
Are you considering buying a condo? I want you to be aware of several things before you make a commitment to buy a condominium.
A lot of people like the idea of condo ownership because, in several areas, single-family homes are more expensive than condos.
So, you’re able to save some money by purchasing a condo.
Also, a lot of people like the low maintenance of a condo. They generally take care of your exterior maintenance, parking areas, the roof, recreation facilities, amenities like pools, tennis courts, workout rooms, and landscaping.
So, it’s a really good option for people that don’t want to worry about that many things and would like to save some money on the buy side in some areas.
Why buying condo is the way to go?
Now, what goes along with that low maintenance is the fact that your condo association is responsible for everything outside of your walls in your home.
Because you have an outside party that’s responsible for the upkeep, maintenance, and enforcing the covenants of the condo community, then you have less control over it.
So, you want to make sure before you buy into a condo that you’re very aware of the financial situation that the condo is currently in and the overall condition of the condo before you buy.
Condo Association Fees
When you buy into a condo, there are going to be condo association fees that you’re going to pay. They’re either going to be assessed on a monthly or annual basis.
So, you want to know that upfront. You also want to know that your realtor has sold condos in the past or recently because sometimes the condo rules and regulations are much different from single-family rules and regulations. So, you want somebody that’s very knowledgeable about condos before you use them as your realtor.
So, I’m going to get right into the items I want to make sure you have before you buy a condo.
Have A Long Due Diligence Period
I want you to have a long due diligence period. This is a period that you can do your own home inspection and that you can look over the documents that you’re going to request as part of your offer. So, you want to get enough time to do this. The due diligence period, depending on where you live, maybe called something a little bit different. But it’s a time period after your offer is accepted but before you can terminate without penalty.
So, it’s going to give you some time to get your inspections done, to go over the paperwork, but during this time you’re allowed to terminate your contract without penalty, and your realtor can help you with that.
So, with this long due diligence period, you’re going to ask for the covenants and the bylaws. So, you know what are the rules and regulations of this association, of this condo community. You want to be able to see the rules, see what you’re required to do, what you can do, what you cannot do. You also want to see how everything is run. Do you have a board, who sits on the board, how do they come up with the budget? You’ll be able to find all of those things in the covenants and the bylaws.
Look at your budget
You want to look at the budget, at least for the last year, but it’ll be helpful for you to look at the budget for the last two to three years so you can see how money is spent and how much money is on hand. Can the association meet their financial obligations on a month-to-month, year-to-year basis, or are they running in a deficit? Do they not have enough money to meet the building’s basic needs? Okay, that’s number two.
Meeting Minutes Of The Board.
What is happening?
A lot of these board meetings get very contentious, especially when money is involved. So, you want to see is anybody complaining about things not being done, things not being repaired?
Are there any special assessments being proposed, meaning they may not have assessed it yet but they may be thinking about it?
They may be thinking about, “Well, we’re going to have to ask each homeowner for extra money to fix, repair, or to do some kind of maintenance.”
They’ll have these discussions in the minutes before they make a decision or reports voted on. And a lot of times, depending on your state, if a special assessment has been approved but it hasn’t been paid yet, then that owner of the condo should have to disclose that to you ahead of time.
And maybe that’s something you guys can negotiate before you buy the property if you still want to buy it. Y’all probably can negotiate who needs to pay that assessment before you buy.
Okay, that’s number three. You want the minutes, as many minutes as you can get your hands on.
Has there been a capital reserve study?
So, a capital reserve study would basically say do you have enough money, like is there like an outside source that says you have enough money, you’re collecting enough money to make sure you’ll be able to maintain this property over the long term.
And because sometimes you’re not dealing necessarily with professionals on the board, so they need to go sometimes to outside resources, outside management companies to make sure those things are in place.
So, you want to make sure that again, there’s some kind of study that says they have enough money to meet their obligations.
How many units are leased in the community?
So, how many condos are owner-occupied and how many are leased? Sometimes in the covenants, they’ll have a rental cap.
In some areas, you want to know have they already reached that cap because sometimes you’ll find in some condo communities that if you have a lot of renters, sometimes that equates to a lot of people not paying their assessments.
And if you plan on selling in the future, if you have a lot of leases, sometimes it’s not eligible that community is not eligible for FHA financing.
So, you want to make sure that number one, if you plan to lease yourself, you want to make sure there’s no leasing restrictions.
And then if you don’t plan to lease, you just plan to own or occupy, you really want to make sure that the majority of the units are also owner-occupied. Okay, all right, okay.
Inspections that have been completed on the property
And sometimes these can be, you know, several years before the county comes in and inspects.
But you want to see if there are any inspections that have been recently done and, you know, or any inspections on file by the city, state, or county that tell you what condition the entire property is in because if you get a home inspection for a condo, it will just generally inspect your unit.
It may not inspect the entire building. So, you want to see if there are any inspections or reports on the entire building because you’re buying in to that maintenance of that.
And so, if the maintenance or there are a lot of repairs that need to be done that haven’t been completed, then that your assessments may increase in the future to cover that amount or they may assess you, assess you an assessment.
They may charge you an additional assessment to make sure those items are taken care of.
So, I don’t want you to be fearful of buying into a condo, but I do want you to be knowledgeable about what you’re getting into so you can plan accordingly. I hope this was helpful. Please like and subscribe to my channel for new videos every week.
Steps to buying a condo
Step 1: Pre-qualification & Budgeting
The first step in the buying process is understanding your financial capacity. Take the time to review your finances, savings, and credit score. Speaking to a mortgage broker or your bank can clarify how much you can afford and get you pre-qualified for a mortgage.
Step 2: Choosing the Right Real Estate Agent
The condo buying process can be complicated, and a knowledgeable real estate agent will be crucial. Pick an agent familiar with the Miami Beach area and has experience negotiating condo purchases. They can provide invaluable advice and guide you seamlessly through the entire process.
Step 3: Unit Selection & Property Visit
Next, decide on what you want in a condo. Consider factors like the number of bedrooms, the view, amenities, and the floor level. Your agent can help you narrow down available Akoya condos that fit your preferences. Once this is done, it’s time to visit the property in person to get a feel of the condo, the building, and the surrounding neighborhood.
Step 4: Offer and Negotiation
Once you find your dream condo, you will need to make a competitive offer. Your real estate agent will play a crucial role in this stage. They will help you evaluate comparable properties, craft an offer that is enticing to the seller yet within your budget, and negotiate the terms of the sale.
Step 5: Inspection and Appraisal
After your offer has been accepted, it’s time to hire a professional to inspect the condo thoroughly. They will check for any potential issues with the unit. Simultaneously, your lender will order an appraisal to determine the condo’s market value. This process ensures you are paying a fair price.
Step 6: Finalizing Your Loan and Closing the Deal
If the property passes the inspection and appraisal stages, you will move forward to finalize your mortgage. It includes completing all the necessary paperwork. Your lender will then work on funding your loan.
On the closing day, you will meet with the seller, real estate agents, and possibly a representative of the lender. After you sign all the necessary paperwork and pay the down payment and closing costs, the keys to your new Akoya condo will finally be handed over to you.
Step 7: Moving In
The last step in the process is moving into your new Akoya condo. Now it’s time to turn your condo into a home by adding your personal touch and enjoying the luxurious amenities Akoya offers.
In Summary
Purchasing an Akoya condo is indeed an exciting journey. Knowing the steps involved in the purchase process will empower you and fill you with confidence when you make your move. Remember, buying an Akoya condo is not just about acquiring a property — it’s about embracing a lifestyle of luxury, tranquility, and community living. Welcome to your new home at Akoya!
