Expert: Karyn Foley - 3/26/2007

Question
I am interested in buying the apartment that I am currently renting. However, it is not for sale. My landlady mentioned about a year ago that she was considering condo'ing out my building (there are only 3 units), but hasn't followed up on it. I had not expressed interest at the time, since I didn't have the financial resources then to consider buying, but do now. What is the best way to approach her about my interest in buying my unit? Is this something I should discuss with my buyer's agent?

Answer
Dear Erin:  How can you buy what is not for sale?  If the unit is still part of an apartment building that has not been turned into a condo, you would have the buy the entire apartment building at this time.  It is a long process to turn that into a condo development as it needs to go through a lot of paperwork and permits with the local jurisdiction.  I would suggest you write a letter to the owner expressing your desire to buy your unit when the plans for turning condo are in progress.  In the meantime, if you are seeking a permanent condo to live in, now is a good time as interest rates are low.  Even if prices go down when your unit turns condo, the interest rates may be higher so your monthly payment may end up being the same.  I would suggest you consider any purchase a long term investment that over the years will go up in value, down in value, and go through the cycles of the economy.  You would have tax write-offs that will be of benefit.  First, consult your tax advisor and see what he/she suggests, then talk with a lender.  Then, perhaps you should go out with your buyer's agent and preview what is presently on the market in your price range.  You will gain a valuable education for the present and for the future as well.  This process is important so that you go into your thoughts and plans with a good background supported by facts and pertinent information.  Do a lot of reading of the real estate section of your newspaper, and try to keep current with the prices - the asking prices and the sold prices.  Spend some time over the weekends visiting open houses as well.  The more your learn the less likely to make errors.  Good luck to you, and let me know if you have any more questions.  I think a purchase is a wise investment.  Karyn Foley