Buying Atlanta Condos or Townhomes

If you are a first-time home buyer, taking the time to ask the right questions when you are shopping for an Atlanta condo, loft or townhome can help you make an informed decision -- and get the most for your money.

To follow are five questions to ask the seller, your Atlanta real estate agent and/or the HOA (Homeowners Association):

QUESTION #1 -- How much are the monthly HOA fees... and what is included? 

The HOA (Homeowners Assn) fee can vary from complex to complex, as well as the coverage.  For example, one complex may pay for your water bill, while another may not.  Those complexes or communities with pools or other amenities often have a higher HOA fee.

QUESTION #2 - How many renters reside in the complex?

Try to avoid complexes where there are more than 25% of residents comprised of renters.   Some lenders do require that the ratio is 25% or less in order to secure financing.  PLUS, as a homeowner, you want to ensure that other condo / townhome owners are interested in maintaining their property so that your investment is protected.  ** Check with your loan officer to see if there is a cap on the # of renters allowed.

QUESTION #3 -- How many of the units have been sold? 

If you are considering a newly constructed condo or townhome, this is a critical question for two reasons:  One, your lender may require that at least 25 - 50% have sold (or are "under contract")  to ensure that the value of the property is stable and two, you don't want your property value to go down if the builder deeply discounts the remaining 20% of the units just to get them sold. 

QUESTION #4 -- How is the condo association managed?

A professionally managed homeowner's association should have a third-party property manager unless it is a small condo building or complex.  Don't be afraid to ask the seller or the neighbors how they feel about the association/management company.  Also, the HOA will have to disclose how many residents are delinquent with their HOA dues. If the number is high, that's a sign that several residents are experiencing financial distress and may be facing foreclosure.

QUESTION #5 -- Are there any current or pending Special Assessments?

The Seller will have to disclose to both you and your lender if there is a current special assessment and/or if they know if one is coming up.  Special Assessments are used to make significant repairs or enhancements to a building -- when the Homeowner's Association Reserve Fund does not have enough to pay for it.  Special Assessments can cost hundreds if not thousands of dollars, so it is critical that you do your research.  As a Buyer's Agent, I always do a lot of research to ensure that my clients are protected, including asking for a copy of the HOA Budget and also requesting the last 12 months of HOA meeting minutes.  This is an important request, because sometimes the sellers do not regularly attend the monthly HOA meetings, so they are not even aware that a special assessment is being considered by the Homeowners Association.

In today's real estate market, there are some fantastic deals (and I mean FANTASTIC!) on Atlanta lofts, condos and townhomes, but you need to do your due dilligence to make sure that your investment is protected and you are able to truly ENJOY your new home in the years ahead.

>>  View ALL the condos and lofts for sale in Atlanta

>>  View ALL the townhomes for sale in Atlanta (including townhome foreclosures!)

>>  Search for condos and townhomes for sale by Atlanta neighborhood

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Posted by:  Kerry Lucasse - Atlanta GA Real Estate Agent - Atlanta Home Search Team
The ATL Home Search Team is part of Keller Williams Realty Peachtree Road - Atlanta GA

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