Questions you need to ask before buying a Condo in Sarasota or Venice FL

Okay, you have found your dream condo in Florida. A cute place nestled into lush landscaping, and the emerald green water of the Gulf of Mexico is shimmering through the trees. You are so excited because the price is right, and you can already picture yourself relaxing in a hammock among swaying palm trees. How wonderful can life be?

I don’t want to let it rain on your parade, but hold everything for a minute – you got to do some homework first if you don’t want to get stuck with a lemon for the rest of your lifetime. There are a few important questions you need to ask before you let the ink of your signature dry on the contract.

Let’s start with some basics. When buying a condominium you need to understand the concept: you are simultaneously buying two separate pieces of property, your own unit and the property held in common. Therefore, a condo is called “shared ownership”, meaning that condo life requires the new owners to give up some freedom they would enjoy if they bought a detached house instead. There is absolutely nothing wrong about buying a condo, but you need to ask yourself if that is it what you were looking for.

Fact is that most buyers are attracted to the lower price of a condominium. Compared to a detached single family home the difference can easily be between 30-40% less. However, the purchase price is only one side of the coin as you will see later.

Condos may come with a hefty monthly fee. The more perks the condo complex has to offer, like heated swimming pools and resort – like amenities such as tennis courts, shuffle boards, golf course, volleyball courts, boat launch, fitness center, club house, restaurant on site, and 24h security, the higher the fee. This is so far not a secret.

As mentioned before, when buying a shared ownership property you share the cost for maintaining the “goodies” as well. The price tag for pool service, landscape maintenance or exterior maintenance of the building can blow your mind. Some Homeowners Associations are excellent in keeping the cost down. Some are more wasteful.

Unfortunately, this list goes on and on: insurance for the building and legal and accounting fees need to be paid. They are usually part of the HOA fee. Furthermore, the condo buyer also pays into a reserve fund in order to save for the cost of expensive replaceable items like roofs and tennis courts. This can be included in the HOA fee, or it can be a second one. CDD fees (Community Development District Fee) may be another hefty fee. In case the community - and not the County – owns the infrastructure (roads, ponds, street lights, etc.) the condo owner needs to pay pro-rated for that as well.

All the fees combined can add up to several hundred dollars per month. Some upscale communities have monthly fees of $1.000 plus – not even including golf club membership; and don’t forget to add your own bills to that: mortgage payments, insurance, cable/TV/phone, water, and other expenses. By the way, the HOA fee is not tax deductible if you are counting on that.

So far, we have been talking about the financial burden. You found out that the fees are reasonable from your perspective, and you are happy with all the amenities you are going to use in the future. However, before you open the first bottle of wine, there is a little more to consider: Examine special assessments for unexpected costs (if there are any). Check the occupancy rate and try to find out about the short sale/foreclosure situation. Too few occupants will leave you with extra expenses. Too many bank owned properties are a bad sign as well. Find out about the delinquency rate. How many owners do not pay? They might create more trouble ahead.

Try to gather information about the board members. The Home Owners Association is acting like a small governing body with an elected president, vice-president, secretary, treasurer plus additional board members. Be aware that a bad HOA can make your life really miserable. Once in a while you’ll find that even a “good board” is doing something that you don’t like or want. You may also want to decide about rules that will affect your home and its value? Get elected, but don’t burn your fingers. Some Associations are different. Once you are involved, they can suck you up like a black hole.

More questions:

- Can you bring your pet and what are the restrictions in weight, size or breed?

• Can you park your car/truck outside the garage, or do you need a special place for it? Same with your boat.

• Is the complex renter friendly? What are the terms if you want to rent the place out while you are gone? In some condo communities you can only rent for certain months or only a few times per year. Always keep in mind that the HOA can change the rules at any time. Check the bylaws (condo documents) for all the information.

Purchasing a condo is a big step, and you want to be sure to do the right thing. When all the questions are answered to your utmost satisfaction, walk around once more and get a feeling. In a condo, you are in very close contact with your neighbors. Different condos attract different people, and the entire atmosphere can be different. When you find out that the atmosphere fits you, the price is right, and there are no foreseeable obstacles in your way (or in the bylaws) – go for it and be happy. The hammock is waiting for you.