What To Know Before Buying A Condo
Things to know … before buying a condo
Buying a condo or attached home is a great way to enter home ownership. Additionally, it also offers a lifestyle that doesn’t require as much day-to-day property maintenance and can be a great investment.
However, buying a condo does come with some risks, as well as rewards, and there are things you should know and/or research before purchasing.
I have helped many clients purchase condominiums and attached homes. Here are just a few of the talking points I discuss and discover as an experienced agent when my buyer clients want to purchase a condominium:
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Special Assessments / Financial Sustainability: Are there any upcoming costly special assessments proposed to current and/or future homeowners for projects outside the scope of the monthly budget? How do the financial statements look upon review? Does the HOA have a healthy reserve account to absorb any unforeseen community repairs? Has a reserve study been done?
HOA: How is the HOA currently run? Have they had any lawsuits? Overzealous administrators? How are violations enforced? Does the HOA hold regular meetings and are meeting minutes logged? Does the HOA have competent third-party management? What is the HOA insurance coverage policy?
Monthly HOA Dues: What are the dues? Are they monthly, quarterly, or annually, and what do the dues cover? Are there any utilities covered? How much is set aside for reserves? Is there a healthy reserve account? Is there deeded parking or garage space? Storage?
CCRs & Bylaws: What are the rules of the community? Pet policy? Any restrictions that inhibit the owner’s use of the property? Are there rules that enhance and/or restrict the livability of the community? Are there any rental restrictions or a rental cap in place?
Exterior Condition: What’s the exterior condition of the building look like? Is it in need of future repairs? Is there obvious deferred maintenance? Have any modern features (e.g., windows, systems, siding, electrical, etc.) been installed if it’s an older building?
Interior Condition: Are there any known issues from the previous owner on the condition of the interior? Is there any visible deferred maintenance? Are the walls between units solid or thin? Updated or outdated? Is there a crawlspace or attic and/or is it the owner's responsibility to maintain or is it the HOA?
Price & Unit Location: Does the price reflect the current market value? Is the location superior or inferior compared to other units? Is it priced accordingly to reflect this?
Condo Conversion: Was it an original apartment complex converted into individual condos for sale? What was its original intended use?
Financing: Are there any restrictions for loan/financing eligibility? Is it HUD-approved for FHA or VA loans? What is the owner occupancy rate vs absentee owners? Does any portion of the community fall into the FEMA 100-yr flood plain? If so, is there an elevation certificate, and how will this affect loan eligibility?
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