President's Message
Chris Sloan
As condominium and townhomes choices have increased in recent years, many buyers have turned in their lawn mowers and garden tools in exchange for the ease and convenience of multi-family living.
While single-family homes are still the majority of homes purchased overall in Utah, a fair segment of buyers are turning to condos and townhomes as a maintenance-free way of living. In fact, the National Association of Realtors reported in its "2008 Profile of Home Buyers and Sellers" that 22 percent of all buyers surveyed did not purchase a detached single-family home.
Condos and townhomes can be smart purchases for many buyers, but because most developments include certain restrictions and some shared ownership, it's smart to thoroughly do your research before buying. Start by taking the following steps, and ask your Realtor for additional information and tips.
Consider Your Lifestyle
When considering buying a condo or townhome, start by looking at your lifestyle. If you hate yard work and desire amenities like a swimming pool or fitness center, one of these developments could be a perfect fit. However, if you prefer a more private location and personal outdoor space, you may be better suited with a single-family home.
Also take into account that condos and townhomes are part of homeowners' associations that require monthly fees for maintenance and include restrictions on what you can do with your property. While the restrictions are designed to protect both you and the other owners in the development, they may not fit your particular lifestyle.
Carefully read the associated covenants, conditions and restrictions (CC&Rs) before deciding to buy a particular unit so you know exactly what will be expected of you. Also see if there are any grandfather clauses in place that may restrict you from conducting activities that earlier buyers are allowed to do.
Understand the Types of Ownership
There are several types of property ownership that could apply to property within a condo or townhome development.
In general with a condo, the owner holds the title to his or her individual unit, but does not own the land underneath or the air above the unit. All the condo owners in a particular development hold title to shared areas that are used by multiple owners, such as hallways, walkways, clubhouses, swimming pools, etc.
The property ownership of a townhome may or may not be the same as that of a condo. For example, in some developments, the owners own the land beneath their units; in others, they do not. Because of the variations from development to development, make sure you understand beforehand what your purchase includes. As with condos, the owners typically share title to the common areas, and an owners' association collects fees for maintenance.
Research the Homeowners' Association
Find out as much as you can about the homeowners' association before you buy. Make sure you understand what your monthly payment covers and how often the association can raise fees.
A careful look at the association's finances and minutes could reveal red flags. If there are unresolved maintenance issues, find out if the association plans to take care of the problems. Also determine whether there are adequate funds available to pay for the repairs. If not, there could be an upcoming assessment that condo/townhome owners will be required to pay. Any litigation issues could also signal problems.
These are just a few of the issues you should review when considering the purchase of an attached home. Because buying a condo or townhouse can be complex, make sure you are working with an experienced Realtor who can guide you through the process and help you avoid potential pitfalls.
If you don't have an agent, but would like to see how to to look for one. Stop by our web site @ Utah Real Estate and take a look.
Or you can call, 435-840-5029. We'd be happy to help.
Published Monday, June 22, 2009 9:39 AM by Chris & Berna Sloan Filed under: Real Estate, Utah
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