Condo : 40 years old

[SoCalBuyer]

Hi All,
I am a first time home buyer.
Recently, we (me/wife) show a condo(4 stories or less) that we liked. Its reasonably priced and the location is great! Our only concern is the structural integrity of the building given that it is about 40 years old.
Ofcourse, we are going to have a formal inspection of the house done. But even if it comes out to be satisfactory, I was wondering if you all can give us your opinions about the age of the building and any forseeable issues that might arise out of that.
Is it safe to buy a place like that?
We plan to live in that place for 3-5 years atleast. Can I have problems trying to sell it in future (5 years from now) as it will be older by that time?

[donrock]

40 years is really not that old for any property that has been taken good care of. There are many houses in the country that are over 100 years old and in good condition. It mostly depends on the maintenance. Your inspection should determine whether its good or not.
Good luck,
donrock

[SoCalBuyer]

Thanks for the reply.
We are planning to make an offer on that one. We have been asked a 3 % deposit by our agent. What does that mean? Do we loose that money if we were to back out after inspection?

[jpoey]

there should be a clause in the purchase agreement that you may withdraw the offer with an unsatisfactory inspection with full deposit refund (if there isnt make sure your agent adds that as a condition), most of the time you may negotiate the price after the inspection if there are any issues; also some inspectors are dont have the experience

as for the 3% that is probably the agents/brokers commission so they dont have to make adjustments on the closing statement (this is mostly normal) and you must have a deposit with the PA

and why arent you asking your agent these questions?

[Greg]

The 3% deposit is negotiable. The less the better for you. You are going to hear that the bigger the deposit the better chance the seller will take your offer but these days a seller would be foolish to let this get in the way of making a deal. While the contract says you can get your deposit back sometimes it is easier said than done.

[MinnesotaPropertiesOnline]

SoCAL good luck with your offer. I don't think there is a hard and fast rule for Earnest Money. Typically I like to do 1.5% of the sale price. Although, as a first time home buyer, often times the earnest money is $1000 and your agent can explain this to the listing agent when the offer is submitted.

[duckwall]

thats not that old it all has to do with how will it was kept up

[donrock]

SoCalBuyer,
Have you made your offer yet? If you have hopefully you didn't give them 3% for the DP. Give them a $1,000 tops. If your agent presses your for more tell him/her to read another RE book.
Good luck,
donrock

[SoCalBuyer]

Thank you all!
I have not made an offer yet, I'll definitely try to negotiate down the deposit that I have been asked for!

[Jenie0109]

40 years is a bit questionable for me. Better check out the structure first to be sure.