Keep HOA costs down
Young buyers tend to get caught in a trap when gauging the affordability of condos or town homes, Nichols says. The asking price often fits their limited budgets, but HOA dues and the possibility of large assessments can sink the purchase.
"When it comes to condo buildings, my younger buyers are looking for properties with no special assessments," Nichols says. "These can be as high as $10,000, and young or first-time buyers don't necessarily have this in their budget. Likewise, they want to maximize their monthly housing budget by finding a property with low monthly assessments."
The possibility of a hefty assessment or high HOA dues deters some young buyers, but a building that's eligible for FHA financing can be attractive, Nichols says.
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