If your lifestyle is suited to condominium living, there are great Glenview condos available around The Glen Town Center. Although people tend to think of condominiums as smaller houses without yard work, there are many other differences between buying a condo and buying a single family home.
Condominiums are great for either first-time buyers seeking affordability or past homeowners looking for an easier lifestyle close to all their needed amenities. Whichever group you fall into, here are some things that need to be asked and reviewed, and information that should be obtained before you commit to a purchase.
First, there are legal differences between a single-family home and a condo. While a single-family home conveys with all the land around it and gives total control of its use to its owner, a condo can only be possessed from the outside of the inside walls. Anything beyond that area is controlled by all of the owners of the complex. In other words, you may not chop down that tree blocking your view or paint your door bright red with polka dots.
In a condo environment, your neighbors are also co-investors and you have an enforced relationship with them beyond just being neighbors.
In looking for which condominium complex is right for you, it's important to ask the right questions. Your agent and even the listing agent may not have all the answers; therefore, you will need to find out first if the complex is professionally managed. If it is, don't be shy about asking for the phone number of the management company. If it isn't professionally managed, ask for the name and number of the head of the HOA (Home Owners Association).
Often times, a professionally managed complex will be more willing and prepared to answer your questions. If the complex is self-managed, HOA board members are volunteers and usually less prepared to give answers to your questions. Here are some basic questions to ask:
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How many units in the complex are owner-occupied?
The reason this is important is two-fold. First, Fannie Mae and Freddie Mac may not finance the purchase of a condominium in a complex which they view as too heavily owned by non-occupants (investors). Usually, the benchmark for financing is two-thirds owner occupied. The second reason is that sometimes condo associations have difficulties enforcing rules against renters. HOA's are really dependant on owners making sure their tenants follow the rules and regulations.
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In the last 3 years have there been any special assessments? Do you anticipate any major projects (whether they be maintenance or improvement) in the next year? If so, are there sufficient reserves to handle these expenses?
Just like homeowners have unexpected repairs, so do condo associations. An association that is well run will plan for these expenses and set their condo fees so that sufficient reserves exist to cover all emergencies. You don't want to buy into a poorly run association where there have been multiple assessments, which is a sign of poor planning.
- Currently, are there ongoing disputes among owners and the association that are trying to be resolved?
If owners are constantly in serious disputes over multiple issues, you may want to think twice about buying into a war zone. Some common issues that seem to be recurring are hanging items on or from balconies, pets and age restrictions.
The rule against hanging items on or from balconies used to be to prevent hanging laundry and bird feeders. Today, it seems to be more a battle regarding flowers, plants and flying the flag. Condos come into conflict whether pets are allowed or not. Those that don't allow pets are often pressured to admit them; condos that permit pets are often in conflicts where the behavior of an unruly pet can cause complex-wide disagreements. When you purchase in an over-55 condominium complex, there may be conflicts regarding owners who have kids (and grandkids) that may come to temporarily live with them and the association restrictions surrounding that issue.
- Are there any current lawsuits that the association in involved in?
Sometimes condo owners end up in litigation with the developer of the complex, the manufacturer involved in the building products of the condo complex, or even an individual homeowner. This may not be a reason to not purchase, but it is probably something to discuss with your attorney.
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Are there any amendments to the condominium by-laws currently on the table?
This is important information to have in order to avoid any surprises once escrow closes and you get the keys to your new condo. One such surprise could be learning you are now limited to one parking spot per unit when you were under the understanding that both you and your spouse would get a covered parking spot. Some sudden by-laws changes could impact you in regards to your use of the facilities and enjoyment of the property. Once you actually own your unit, you have a vote.
As stated earlier, you may find HOA members less prepared to give you the necessary answers. This is because they may not know the correct answers, or they may be worried about repercussions from your seller, other association members or even legal action. It could simply be that they don't want to be bothered by someone just shopping around.
Either way, the answers or lack of cooperation may be all you need to make your decision on whether to invest in the development or not. If you do decide to proceed with an offer, there is a lot more research to do and a number of contingencies that you will want The Marla Schneider Team to put in the offer. In Part 2, we will cover other things you need to do to successfully find your perfect Glenview condominium complex.
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