Buying a Condo

Choose an Agent Who is Experienced with Condos

Before you buy a condo, choose an agent who has experience selling condos. The process is slightly different from buying a single family home or other properties. An experienced agent like me guides you through the process to ensure you are well informed.

Evaluate the Condo

It may seem obvious, but the first step is simply to determine if you like the condo. Consider the layout, finishes, storage, parking (if you need it), neighborhood, and location. Look at how the condo is positioned in relation to other units. Make sure the unit itself is the right fit for you.

Look at Your Costs and the Benefits

In addition to the purchase price, condo owners are required to pay HOA (Homeowners Association) dues, which often cover utilities such as water and garbage, building maintenance and repairs, building insurance, and other expenses. 

Review the amenities the building offers residents that are covered under your HOA fees. These may include access to common areas, pools, fitness centers, laundry facilities, concierge services, security, front desk staff, gardens, and more.

Ask yourself if these amenities are useful or important to you, or if you are paying for amenities that you will not utilize.

Evaluate the Building 

Next, consider the entire building. Look at how many other units there are in the building and how many are owner occupied. Think about whether you enjoy living in a larger builder with many units, or if you prefer a smaller setting.

In addition, evaluate the condition of the building and maintenance of any grounds or common areas. The upkeep of this building is important since you are paying for its maintenance.

Evaluate the HOA

Smaller buildings tend to have a more casual HOA where owners are more involved. Larger buildings, usually run by a management company, often have a very structured HOA with formal bylaws, financials, reserves, and meeting minutes (which is a good way to see how well the HOA is run).

Ask to see the HOA’s Covenants, Conditions, and Restrictions (CC&Rs) document, which is the HOA’s road map. This document explains all the rules for the building (everything from pet and rental policies to rules and restrictions). Every HOA is required to have recorded CC&Rs made available to owners. 

Finally, ask if the HOA has a Reserve Study, which is an overview of the timeline for future major repairs and upgrades to the building. All owners contribute funds to support these projects, typically through their HOA dues. If repairs are needed and funds aren’t available, the HOA may need to do a special assessment.

Secure Your Financing

Securing a loan for a condo is a bit more of a process than with a single family home. A buyer might qualify for a slightly lower purchase price with a condo than a home because a lender takes the HOA dues into consideration. 

In addition, when you buy a condo with a mortgage, the bank has to approve both you and the HOA/building. Therefore, it’s a good idea to work with a lender with a streamlined condo approval process. 

Your lender evaluates the health of the HOA and its insurance policy. They may have additional questions about the building’s occupancy, reserves, and other requirements. If the lender has a streamlined condo approval process, this step will be much less involved.

Also, a lender considers if the building is complete or still under construction, if there are any liabilities or pending litigation against the HOA, and how the budget is being spent. Finally, a lender also evaluates the ownership of the building; lenders are less likely to approve a loan for a building that has one majority owner.