Performing due diligence before purchasing a Parker, CO luxury condo is only right considering the money involved. And if your due diligence yields warning signs that the luxury condo you’re eyeing may not be the right one for you, you should heed them by all means. More often than not, signs like the ones listed below are usually good indicators that there is something wrong with the luxury condo you’re about to buy.
1. Problems with the city’s planning department A city’s planning department is responsible for, among other things, the long range development of a city. If they are giving a luxury condo developer trouble, there is often a very good reason for that. City planning department woes usually mean a delay in or the cancellation of a project, both of which don’t make for an excellent real estate investment.
2. Not-so-ideal location The most beautiful and modern luxury condo building won’t mean much if the site is not to your liking. That’s why you need to vet the location before making any decisions. Always remember that it’s the neighborhood that makes the house, or in this case, the luxury condo.
3. Slow luxury condo sales. When a Colorado luxury condo project doesn’t have many takers despite all the hype, you should take it as a warning that there’s something off at the very least. You should also be concerned when developers start to offer realtors unbelievably huge commissions and incentives just to sell units. There must be a reason, often not good, for all that hard sell.
4. A too good to be true price tag Never trust a realtor selling luxury condos with a price tag that’s way below its market value. There is definitely a catch, and you wouldn’t want to find out what it is after you’ve paid for it.
5. Over-the-top amenities It’s but normal for a luxury condo to have well-appointed gyms, pools and other amenities, but concierge services, pet spas, and get this, an in-house lifestyle curator, are just a bit too much. You don’t want to pay for these superfluous features. But if you have more money than you know what to do with, go for these types of luxury condos, by all means.
6. Building flaws Always be on the lookout for construction defects when checking out a prospective luxury condo buy. Luxury condos are supposed to be built with the finest materials by talented hands, and evidence of sloppy work like rain coming through the sides of glass windows or glass doors that stick often do not inspire confidence.
7. Too high or low HOA fees When you’re buying a luxury condo in a building that already has a homeowners association, don’t forget to ask about the fees. Fees that are too high or too low usually indicate a problem. Extremely low fees could mean the HOA is not collecting the right amount to pay for the amenities, while unusually high fees can point to financial deficits that the HOA may be trying to hide.
8. No kids allowed It’s appalling how some luxury condo HOAs can implement age restrictions on its members. It’s understandable to want some peace and quiet, but discriminating against people who have children and making it official policy is just unacceptable.
9. More unacceptable restrictions Before buying a Parker, CO luxury condo in a building with a HOA in place, ask to see a list of the HOA’s rules. If there’s something in it that you don’t like or agree with, then you should find another luxury condo that’s more to your liking elsewhere.
10. HOA monopoly It’s always smart to find out beforehand how many HOA members own multiple units. Members who own more than one unit get more than one vote, and they can potentially control any voting on any building-related issue.
Keep an eye out for these signs, and you can avoid buying the wrong luxury condo.
Written by: Victoria Hemmington