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    ted a large inventory of condominiums for sale, resulting in some price decreases in the marketplace. Buyers are offered incentives ranging from cash to cars as developers try to sell their units to recoup the conversion costs. However, each local real estate market is different, so be sure to resea
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    The Truth About Condominium Conversions

    As home prices climb in major metropolitan areas, many real estate developers are converting apartment buildings into condominiums. These developers usually renovate kitchens, baths and flooring, replace light fixtures, add a coat of paint and voila! the transformation from apartment to converted condo is complete.

    Affordable Housing

    In California, these condo conversions create affordable housing for home buyers in many areas where new single-family homes or condominiums have a median price that outpaces average income. Home buyers benefit from the developers’ savings: it costs less to convert apartments to condos than it does to build a project from raw land, particularly in areas where land is at a premium.

    Condo conversions generally sell at a discount compared to new condominiums. For buyers, the downside is that they are buying a refurbished older unit as opposed to a brand new one. The obvious upside is that with discounted pricing comes greater accessibility to a broader demographic of potential home buyers. In San Diego, California, for example, a flood of condo conversions over the past few years has created a large inventory of condominiums for sale, resulting in some price decreases in the marketplace. Buyers are offered incentives ranging from cash to cars as developers try to sell their units to recoup the conversion costs. However, each local real estate market is different, so be sure to resear

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    e transformation from apartment to converted condo is complete.

    Affordable Housing

    In California, these condo conversions create affordable housing for home buyers in many areas where new single-family homes or condominiums have a median price that outpaces average income. Home buyers benefit from the developers’ savings: it costs less to convert apartments to condos than it does to build a project from raw land, particularly in areas where land is at a premium.

    Condo conversions generally sell at a discount compared to new condominiums. For buyers, the downside is that they are buying a refurbished older unit as opposed to a brand new one. The obvious upside is that with discounted pricing comes greater accessibility to a broader demographic of potential home buyers. In San Diego, California, for example, a flood of condo conversions over the past few years has created a large inventory of condominiums for sale, resulting in some price decreases in the marketplace. Buyers are offered incentives ranging from cash to cars as developers try to sell their units to recoup the conversion costs. However, each local real estate market is different, so be sure to resea

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    nefit from the developers’ savings: it costs less to convert apartments to condos than it does to build a project from raw land, particularly in areas where land is at a premium.

    Condo conversions generally sell at a discount compared to new condominiums. For buyers, the downside is that they are buying a refurbished older unit as opposed to a brand new one. The obvious upside is that with discounted pricing comes greater accessibility to a broader demographic of potential home buyers. In San Diego, California, for example, a flood of condo conversions over the past few years has created a large inventory of condominiums for sale, resulting in some price decreases in the marketplace. Buyers are offered incentives ranging from cash to cars as developers try to sell their units to recoup the conversion costs. However, each local real estate market is different, so be sure to resea

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    are buying a refurbished older unit as opposed to a brand new one. The obvious upside is that with discounted pricing comes greater accessibility to a broader demographic of potential home buyers. In San Diego, California, for example, a flood of condo conversions over the past few years has created a large inventory of condominiums for sale, resulting in some price decreases in the marketplace. Buyers are offered incentives ranging from cash to cars as developers try to sell their units to recoup the conversion costs. However, each local real estate market is different, so be sure to resea
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    ted a large inventory of condominiums for sale, resulting in some price decreases in the marketplace. Buyers are offered incentives ranging from cash to cars as developers try to sell their units to recoup the conversion costs. However, each local real estate market is different, so be sure to research the current conditions in your area.

    Buyer Beware

    Although the carpeting, granite counter tops and remodeled bathrooms inside a converted condo are new, the building’s exterior may or may not have received the same attention or renovation. Buyers should hire an inspector to check the condition of the unit, as well as the entire complex, including common areas, plumbing, and roofs.

    Through their monthly home owners’ association fees, condo dwellers are responsible for a prorated portion of building maintenance and upkeep. The developers may have skimped on upgrades or maintenance to the exterior, roof, elevator, pool, wiring, etc. Should any structural problems arise in the future, deferred maintenance items could result in significantly higher homeowner dues to cover the cost of repairs.

    While the home inspector is evaluating the building’s condition, be sure to find out how high the cash reserves are in the home owners associations’ bank accounts. Ask for a copy of the Reserve Study and compare the recommended reserve balance with the actual reserve balance. If the home owners’ association has little cash on hand, residents will need to raise money

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