Choosing a Condominium
Condominiums have all kinds of advantages. They offer
a low-maintenance home for people who don't want to cut grass or shovel snow.
They often have recreation facilities on site and sometimes have social activities
and community events. Perhaps most important to buyers, condominiums share
all the same tax advantages of homeownership and are often priced to be within
the reach of first-time home buyers.
Homebuyers who have decided on a condominium lifestyle, should be aware that
although buying a condominium is in many ways like buying a home, there is
a difference. The condo buyer must remember that the market value of a condominium
lies not only in how nice the living spaces are, but also in what the condominium
is like.
To choose a condominium that will be a pleasant place to live and will also
grow in value with the rest of the market a buyer must examine the condominium
community as carefully as the living area itself.
Each condominium community is in effect, a mini-government charged with the
administration of the common areas. The condominium association provides services
such as garbage collection, landscaping and routine maintenance. It can make
rules governing use of common areas and the aesthetics of the community. And,
it controls the monthly fee charged to each homeowner. The management of the
community can be the determining factor in whether that community is a nice
place to live. For home buyers planning on buying a condominium, there are
some items to consider before making a decision:
Review the rules and regulations, or bylaws, of the
community.
Many communities have regulations about the size and type of pets that are
permitted, the kinds of holiday decorations that can be displayed or the activities
that are permitted in common areas. Homebuyers need to make sure the rules
of the community are in harmony with the lifestyle they want and are not so
restrictive that they would affect the resale value of the home.
Ask about the management of the community.
A condominium community should be administered by a professional management
company that collects the monthly fees, sees to all routine maintenance and
services and oversees major repairs and improvements. If the pool and other
common areas are well-groomed, the garbage and recycling facilities are well
organized, there is plenty of parking and the buildings are in good repair,
that's a good indication the community is well managed and a nice place to
live.
If possible, the homebuyer should ask some of the residents what they think
of the day-to-day management of the community. If the community is still managed
by the developer, they can ask what plans have been made to transfer management
to the community association.
Ask about the financial management of the community.
The finances of a condominium community should also be managed by a professional
management company. The monthly maintenance fee would not only cover routine
expenses but should provide for a reserve fund for emergencies and major repairs.
There should be a schedule of anticipated repairs (and reserve funds to cover
them) that does not put an additional burden on the homeowners.
Ask if there have been any recent special assessments
for repairs or improvements.
Sometimes a special assessment is necessary and unavoidable, but a community
that routinely makes special assessments for major repairs is not planning
its finances carefully. That can spell future trouble for homeowners on a
tight budget.
For more information on buying a condominium, view our Office Directory for
a Coldwell Banker real estate professional near you.
Condo Q & A
Q. What is the difference between a townhouse and a
condominium?
A Condominium is a form of ownership that might apply to a high rise apartment
building, and office center or a community of townhomes. A townhouse is an
architectural style where multi-story homes share common walls. In the New
York Metropolitan area, townhome communities are often held in condominium
ownership but the two words are not interchangeable.
