The buyer can easily see and inspect the actual unit… the other stuff is not intuitive.
You guys are doing a great job convincing me never to buy a condo!
I would never buy a condo.
I would never even buy a house on a private road again. When you get multiple homeowners involved - ack!! Just trying to maintain a half-mile long road is a royal pain.
We live in a house that is part of a homeowners association…because we own one piece of common property.
Read the post by @zoeydoggie. It is spot on. Read read read. And understand that you will not be the exception to any rules in the bylaws. So…understand what is expected of you…and what is expected of the HOA.
I would also check the land records for any changes done to the property that required a change in the land records…and yes this does happen.
One thing I would want to know is how quickly properties sell in this complex as well.
The financials of the HOA are very important. How are the bills paid, and who is responsible for all of that.
Make sure the HOA doesn’t have any outstanding debt.
And make sure the documents you receive to review are complete. When I purchased a condo years ago, the docs were missing multiple pages (not sequential) and the association initially said that it was a copying issue, ended up having to go back to the county for those pages. I was not the only one buying in this time window, but was the only one who noticed.
And I second the comment about litigation - during the time I owned, either the association settled with the developer, or had settled just prior. Lots of $$ became available and needed to be managed.
Not to scare you any further, but it’s also worth doing a google search on the address/name of building.
There was a gorgeous building in our town that I wanted to look at but it turned out that they had a number of building issues when they were initially constructed. Major building issues - like the parking garage collapsed. Then, brand new windows started leaking all over the complex and all needing replacing. Plus the mold remediation as a result of the leaky windows.
Our realtor wouldn’t even show us a unit there because she knew the history. Which is another plug for using an agent who is a long time resident of the town in which you are looking.
I would never buy a condo or a co-op, for the reasons you’ve all just given above. It was bad enough owning a house in a HOA for three years.
I owned a condo as an investment for about 15 years. During that time I could have sold it but was happy with my renters. Out of the blue, in 2007/8 the condo association decided to change the bylaws and disallow renters. I was forced to sell during the recession and lost around $40k. I know the OP isn’t planning to rent, but it’s important to note that even if you do all of your due diligence prior to buying, the association can change things pretty much at will. If you disagree with the changes but are in the minority there isn’t much recourse.
If too many units are occupied by renters, it can affect your ability to get a mortgage.
Other issues that will be covered in the CC&Rs are 1) pets - most condos either don’t allow them, or place a restriction on size and number; 2) smoking; 3) noise - there will be quiet hours; 4) what can be on your balcony or patio; 5) who can use the common amenities.
OP: Why, besides exterior maintenance issues, is your daughter planning to buy a condo or townhouse ?
Which state ? Some states are much better at “policing” condos/townhomes/HOAs than others.
Often it is better to rent in an upscale apartment complex or condo building than to buy–especially for a young, single person who may experience significant life changing events in the near future (marriage, children, jrelocation for career, etc.).
This is a crazy one. I’m on a Facebook page, very small group, running related.
One of the members is being harassed by her neighbor, because the neighbor claims that the scent coming out of the dryer vent is bothering her. I swear!
The harassing neighbor sits on the condo association board and it’s been very difficult for this woman. She’s even changed her detergent but still the condo association is sending letters that they are getting complaints about excessive smell from the dryer vent.
I’ve heard everything!
It’s important to understand that condo prices are typically more elastic than house prices and that they often lag house prices in the beginnings of a rising market, then accelerate late in the market, and have a tendency to come down faster if/when a market goes south.
This is cooling my intention to get a condo for retirement. Thanks, I guess.
We had friends who bought a condo for their daughter in undergrad school. It was a great deal, and a nice town with a flagship university in it. Their daughter lived in it, and had two roommates whose rents basically paid the mortgage. The girls split the other costs.
Well…fast forward four years. Daughter graduated and so did all her roommates. Parents wanted to sell. It took them a lot of years to sell the property (it was gorgeous, but there was a lot of affordable real estate in the area). They finally sold it but it took quite a while. I don’t think they lost money but they definitely didn’t make any.
I guess what I’m saying is…don’t buy unless you are prepared to own the property for longer than you think you might need it.
I would crunch the numbers. Add the HOA costs and mortgage and taxes. Is that really less costly than buying a small house and hiring someone to mow the lawn and remove snow?
My brother bought a condo for his S to live in while he attended med school. It helped the S get residency and was easily and quickly resold when he graduated from med school. I don’t think he made or list any money but didn’t have to be concerned about housing. Since it was a 2bedroom place, brother and family all stayed in the condo when they visited.
H has owned condo units with no problems and no unexpected problems. It all really depends and requires buyer to do significant due diligence (and/or be lucky).
One of my sons is in the process of buying a house covered by an HOA (standard in his area). These suggestions are very helpful!
My mother is living in a condo. My brother and I reviewed the bylaw, looked their finances, maintenance increases, selling history, etc before she purchased. She loves her condo living. They take care of all common area maintenance/repair, snow plowing/law maintenance. She has a club house with gym, pool, etc. We upgraded her kitchen/bathroom/flooring before she moved in. She really loves her condo living. She has all the benefit of owning her place without the headache of maintaining a house.
I have owned few coops/condos in NYC. I really haven’t had any issues. My apartment building does not allow pets, but I knew that before I bought. I reviewed the finance before I went into contract. My monthly maintenance has not changed since I moved in 5 years ago. We have a very strong board, but not difficult.
My apartment was a re-sell (not new), so I looked at their construction history to make sure it was done under code/inspected/permit. I stopped D1 from buying a 3 bedroom because the seller did construction without a permit and refused to get it before selling. D1 loved the apartment and the price was right.
When there are so many condos and coops, there will always be some exceptions and issues, and it is also the case with home ownership. You just need to do your due diligence.
The condo we bought for the kid is in a building that allows only 10% of the units to be rented to non-related people (“related” is defined as a parent or child) for periods no shorter than a year. Condos in buildings with rental caps were 20% cheaper than condos that had no rental cap. We were fine with the “discount. “
Real estate agents can be useful with knowing which developments are well run, which may be having financial difficulties et al. Also check on insurance costs and companies willing to write a policy. Many, many excellent ideas above. We had a vacation condo years ago and the not renting is an excellent feature- you don’t want constant turnover and people there who don’t care/know the rules. With our current house it is a very well run HOA- our realtors were good at pointing out some with some problems i later read about in the newspaper. Tampa has many large developments. Size could matter- problems with only a few??? Important to realize that gated communities make roads and streetlights et al within a complex private property- the city/electric company is not responsible for maintenance.
Check local court records for any lawsuits involving the condo association.