With interest rates at an all time low, you may be wondering how to buy a condo in San Francisco.
A condo can be an excellent choice if you are in the market to buy a home.
A condo is a residence that you own as part of a building. Your home is private, but you will share communal areas with other residents. This means it is important to understand the process of buying a condo and pitfalls to look out for.
How to buy a condo in San Francisco?
What are the pros and cons of buying a condo in San Francisco?
These questions and more will be answered in this article.
Table Of Contents
- Average condo prices in San Francisco
- The pros and cons of buying a new condo in San Francisco
- 3 errors to avoid when buying a condo
- Should you buy earthquake insurance for your condo in San Francisco
- Final thoughts
Average Condo Prices In San Francisco
Prices vary depending on the location and size of the property. The average condo price for San Francisco and the Bay Area is $1.3 million dollars.
The Pros And Cons Of Buying A New Condo In San Francisco
There are many things to consider when buying a home. Buying a condo has pros and cons, here are the main ones:
- Prices on average are cheaper than a house
- All condo owners are responsible for the building and common areas
- Many condos enjoy access to fantastic facilities within the building including gyms and spas
- Saves you time as you don’t have to maintain a garden or other exterior task that come with a house
- Must follow the rules of Homeowners Association (HOA)
- Potential for conflict with other members
- Neighbors may be noisy
- Less privacy as outside areas shared
- HOA fees could be costly plus you may have to pay for things you don’t use
3 Errors To Avoid When Buying A Condo
When buying a condo there are 3 things you should avoid, they are:
- Not having your finances ready. Imagine that you have spent time searching for the perfect condo. To your jubilation you have found the one that meets all your needs, great now you can make the purchase. If you haven’t prequalified your finances then you can miss out as in the time it takes to get finances straight, someone else has snapped up your dream condo.
- Submitting a low offer. You may be tempted to submit a low offer and then negotiate up. Submitting a low offer can end up being a costly mistake. This is because others may be competing for the same property if they offer more than you or more than the asking price it is likely you will lose out. Take advice from your realtor and submit a price that is likely to be accepted.
- Start early. Buying a condo can take months as there are more buyers than condos. If you have a deadline, then start early otherwise you may find you can’t get a property in your desired timescale.
Should You Buy Earthquake Insurance For Your Condo In San Francisco?
As the homeowner, you can buy insurance to cover the interior of your property. This will cover items such as your goods and personal items.
The HOA is responsible for insuring the building. In many cases, however, buildings are not insured for earthquake damage due to the prohibitive costs involved. This means in the event the building is destroyed your home would not be rebuilt with insurance coverage.
Insurance may still be worthwhile so you can get your contents replaced. Some policies also include an extra rider that gives you funds towards living expenses elsewhere.
Ultimately the choice is yours. it is worth checking quotes and asking the HOA if the building is insured.
If you are wondering how to buy a condo in San Francisco follow the advice in this guide along with the experience of your Redmond Realty realtor. This will ensure the buying process goes smoothly and you end up with the condo of your dreams.