Pandemic Home Buying: Homework Before You Close

The pandemic has had a unique impact on the residential housing sector. The frenzy to escape from crowded, high-tax urban locations to less crowded, suburban markets continues to drive up prices of primary and secondary residences. Home prices in many popular markets in the Sun Belt region are at all-time highs, and many potential buyers are feeling pressured to bid and close quickly on newly listed homes—sometimes sight unseen. No matter their income level, buyers should always take the necessary time to do their homework in order to help protect the value of their investment and mitigate unforeseen risks.

Be aware that mixed-use condominium projects bring added complexities, and there are many factors to consider when doing your homework. One key item is to ensure you understand how the fees on common areas (e.g., roof, lobby, elevators) and a shared workforce are split between the residents and the commercial tenants. Your homework should also include visiting the property at different times of the day, speaking with local zoning and planning departments, evaluating market amenities and health care quality, and reading the condominium declaration and offering plans. All of these steps increase the likelihood that you will remain happy in your new home.

Deborah Friedland, Managing Director in the firm’s Financial Advisory Services and Real Estate Groups, recently contributed to The New York Times article, “Home Buyers, Beware: ‘Views Are Not Guaranteed.’” Click here to read the full article.