Purchasing a condo is a smart move for many buyers, especially those seeking low-maintenance living, desirable amenities, and a sense of community. Whether you're a first-time buyer, downsizing, or investing, buying a condo is very different from buying a single-family home, and it’s important to understand those differences before signing on the dotted line.
As a seasoned Realtor, I’ve guided countless buyers through the condo-buying process, and I’ve seen what works and what causes problems. If you're considering buying a condo, here are my top tips to help you make an informed, confident decision.
1. Understand What a Condo Is
Before diving into the search, make sure you truly understand what a condo is. When you buy a condo, you own the individual unit (interior space) but share ownership of common areas with other residents—things like the pool, fitness center, elevators, and hallways.
This shared ownership means you’ll pay monthly dues (HOA fees) and follow the community’s rules, which are set by the homeowners’ association. Buying a condo often involves lifestyle trade-offs: less yard work and maintenance, but also less personal control over certain aspects of your property.
2. Work with a Realtor Experienced in Condos
Not all agents are familiar with the ins and outs of condo transactions. From navigating HOA documents to understanding condo-specific financing rules, it’s crucial to work with a Realtor who has experience helping buyers in this niche market.
An experienced Realtor will know which buildings have strong associations, which ones are eligible for conventional financing, and what red flags to watch out for in the condo documents. They’ll also be familiar with local trends in condo pricing and demand, which can vary greatly from the single-family home market.
3. Review the Condo Association’s Financial Health
One of the most overlooked but critical steps in buying a condo is evaluating the financial strength of the homeowners’ association (HOA). A well-managed association will have healthy reserves for future repairs and a clear, realistic budget.
Ask for the following documents during your due diligence period:
The latest budget
Reserve study (if available)
HOA meeting minutes
Rules and regulations (also called CC&Rs)
Insurance certificates
Look for signs of financial mismanagement, underfunded reserves, frequent special assessments, or large-scale repairs that have been delayed. These could all signal future headaches.
4. Know What’s Included in the HOA Fees
HOA fees vary widely from one condo community to the next, so it’s important to know exactly what you're paying for. In some communities, the fees may include water, cable, internet, pest control, trash removal, building insurance, and even reserve contributions. In others, the fees may only cover basic maintenance.
Understanding what’s included can help you accurately compare condos and avoid surprises down the road. A condo with higher dues may actually be the better value if it includes multiple utilities and robust amenities.
5. Check the Association’s Rules and Restrictions
Each condo association has its own set of rules—some more restrictive than others. These rules help maintain property values and order in the community, but they can also impact your lifestyle.
Some common rules and restrictions include:
Pet limitations (number, breed, or size)
Rental restrictions (minimum lease terms, caps on rental units)
Renovation restrictions (limitations on interior modifications)
Noise or parking regulations
Read these rules carefully before committing to a purchase. If you have a large dog, plan to rent the unit in the future, or want the freedom to remodel, you’ll want to ensure the rules align with your goals.
6. Research the Condo Community
Buying a condo isn’t just about the unit—it’s also about the building and the surrounding community. Be sure to visit at different times of day to get a feel for noise levels, traffic, and overall upkeep. Talk to current residents if possible, and ask about their experiences with the HOA and the quality of life.
Also, investigate:
Parking availability (assigned spaces, guest parking, garage access)
Security features (gated entry, security cameras, on-site personnel)
Amenities (pool, gym, clubhouse, etc.)
Accessibility (elevators, ramps, etc., especially for older buyers)
Amenities can be a great benefit, but they also increase HOA costs, so it’s worth considering how often you’ll actually use them.
7. Secure Financing Early
Financing a condo isn’t quite the same as financing a single-family home. Lenders often impose stricter guidelines because of the shared ownership structure. Some buildings may not be eligible for FHA or VA loans, and others may require higher down payments.
A few key financing factors include:
The percentage of owner-occupied units (the higher, the better)
The concentration of investor-owned units
Pending litigation involving the HOA
Delinquency rate on HOA dues
To avoid financing delays, get pre-approved by a lender who’s familiar with condo loans, and be prepared for extra documentation related to the condo association.
8. Budget for Future Assessments
Even well-managed associations may need to levy special assessments from time to time, for things like roof replacements, major repairs, or unexpected expenses. These assessments can cost thousands of dollars per unit.
While you can't always predict assessments, reviewing the reserve study and speaking with the association or property manager can give you insight into potential upcoming projects. If the reserves are low and a major repair is looming, a special assessment may be around the corner.
9. Conduct a Thorough Inspection
Just because you’re buying a condo doesn’t mean you can skip the home inspection. While the association may be responsible for the building’s exterior, the unit’s interior is your responsibility, and hidden issues can still arise.
A professional home inspector can check:
Plumbing and electrical systems
Appliances
Windows and doors
HVAC systems
Signs of water damage or mold
If the building has shared systems (such as HVAC or plumbing stacks), your inspector may also provide feedback on potential concerns beyond your unit.
10. Think About Long-Term Resale Value
Even if this is your forever home, it’s smart to think about resale potential. Some condo features that typically enhance resale value include:
In-unit laundry
Private balconies or outdoor space
Reserved parking
Strong school district (even if you don’t have kids)
Stable HOA with a good reputation
Units in desirable locations within the building (e.g., corner units, top floors, units with views) also tend to perform better over time.
If you’re buying a condo as an investment or future rental, pay close attention to any restrictions that may limit your ability to rent or sell easily.
11. Understand the Insurance Requirements
Condo insurance works differently than insurance for a single-family home. Typically, the association’s master policy covers the exterior of the building and common areas, while you’re responsible for insuring the interior of your unit.
You’ll need an individual HO-6 policy, which typically covers:
Interior walls, floors, and ceilings
Personal belongings
Liability coverage
Loss of use if the unit becomes uninhabitable
Be sure to understand where the association’s coverage ends and yours begins. Your lender will likely require you to show proof of adequate coverage before closing.
12. Read the Condo Docs—All of Them
This may be the least glamorous part of the process, but reading through the condo documents is crucial. These documents spell out your rights, responsibilities, and limitations as a condo owner.
You’ll receive a condo resale package that may include:
Declaration of condominium
Bylaws
Articles of incorporation
Budget and financials
Reserve disclosures
Recent board meeting minutes
Take your time reviewing these materials and ask your Realtor or an attorney if you have questions. It’s far better to uncover issues now than to deal with surprises after closing.
Final Thoughts
Buying a condo can be a fantastic decision for the right buyer, offering a lock-and-leave lifestyle, access to amenities, and often a more affordable entry into homeownership. However, it's not without its complexities.
By taking the time to understand how condo ownership works, doing thorough due diligence, and working with an experienced Realtor, you can navigate the process with confidence and avoid costly surprises.
If you're considering buying a condo and want professional guidance every step of the way, I’d be happy to help you explore your options and find a property that fits your lifestyle and budget.
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