10 Questions to Ask Before Buying a Condo
If you're in the market for a new place to call home, a condo may be just what you're looking for. Condos can offer many benefits, such as convenience and affordability. However, before you buy one, there are some things you need to ask, so you are aware of what you are getting into. In this blog post, we will discuss ten questions that you should ask before buying a condo. By answering these questions, you'll be able to make an informed decision about whether or not a condo is the right choice for you! Plus, don’t forget to get pre-approved when you start searching.
1. What’s the monthly HOA and what does it include?
One of the first things you need to find out is what the monthly Homeowners Association (HOA) fee is and what it covers. The HOA fee can vary depending on the size and amenities of the condo complex. Typically, it covers things like snow removal, landscaping, and cleaning common areas, but it truly varies from building to building. It’s important to know what the HOA fee covers so that you can budget accordingly.
2. What are the reserves?
The reserves are funds that the HOA sets aside each month in order to cover future repairs or replacements for common areas and amenities. It’s important to find out how much is in the reserves because you don’t want to be surprised by a special assessment (an additional fee that all condo owners must pay) down the road.
3. Are there any planned or upcoming special assessments?
Special assessments are separate from HOAs and can be in the thousands. They are typically used for one-time, big-ticket items such as a new roof or elevator. You’ll want to know if there are any planned or upcoming special assessments so that you can factor them into your budget and see if that is something you can afford.
4. When was the last time all major services (like tuckpointing) were performed?
You'll want to know when the last time all major services were performed because it will give you an idea of how well the condo association is keeping up with maintenance. If it's been a while, that could be a red flag. Your realtor can guide you through what potential special assessments might pop up as well, so you can better know what to expect.
5. What are the HOA rules or bylaws?
The HOA rules or bylaws are important to know because they will dictate what you can and cannot do in your condo unit. For example, some HOAs have strict quiet hours or may not allow pets. If you have a furry friend, this could obviously pose some issues. It’s important to be aware of the rules before you buy so that you can make sure you’re comfortable with them.
6. Would you be able to rent the unit?
This is an important question to ask because not all condo associations allow owners to rent out their units. If you're looking for an investment property or a place to live in the future, this is something you'll definitely want to take into consideration. You may not want to live there one day and it’s nice to know if you can rent it short or long term.
7. Is there a cap on how many rentals are in the building?
On the flip side, it’s less attractive to have a building full of rentals. Some condo associations limit the number of units that can be rented out at any given time. This is important to know because it will affect your property value. If there are a lot of rentals, it could bring the property values down.
8. Can you get a copy of the condo board’s meeting minutes for the last year?
The condo board’s meeting minutes are a great way to get insights into the inner workings of the association. It can give you an idea of how well they communicate, what issues they’re currently dealing with, and how they handle conflict. This is important to know because it will give you a sense of whether or not you want to be a part of that community. I definitely recommend reading it through to see if there were any issues in the last year.
9. Is parking included or a separate fee?
This is an important question to ask because parking can be a pain (and a costly one at that) in the city. If you have a car, you’ll want to know if there is parking available and how much it will cost. Certain condo associations have their own parking garage while others will have street parking spots. Having a place to park is ideal. Sometimes that’s included in the price of a property, but sometimes it’s a separate charge, which is something you should find out in advance.
10. Who is the management team or is it self-run?
The management team is responsible for the day-to-day operations of the condo association. They will handle things like repairs, maintenance, and any HOA issues that come up. It’s important to know who the management team is because they play a big role in how well the association is run. If it’s self-run, that means the residents are responsible for taking care of everything, which can be a lot of work. Either way, it’s good to know what you’re getting yourself into before you buy a condo unit.
So, you’re thinking of buying a condo? Whether it’s your first time or you’ve been through the process before, there are some important questions to ask yourself – and your real estate agent – before making an offer. We’ve put together a list of ten key considerations to help get you started. Keep in mind that this is not an exhaustive list, and every situation is unique. But if you can answer these questions, you’ll be well on your way to finding the perfect condo for you and your family. Plus, if you're curious what it costs to close, grab my free template here.
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