Things to consider before buying a condo

You don’t have to go through a lot of listings or are just starting to think about buying a condo. Make sure you take into account all the points when you analyze a potential investment.

1. Each HOA comes with a recurring fee

Homeowners associations (HOA) are not something that every homeowner and renter knows. These organizations are there to manage the community’s rules and all its amenities, and also manage upkeep.

These services are not free. They are funded by HOA fees that every owner of the community must pay. These fees provide the funding budget for HOA duties.

An HOA and the services they provide cannot be canceled. These fees must be paid when you purchase a condo. You also have to abide by all rules and regulations of the condo for the duration of your ownership.

2. HOAs are not all run the same.

Each HOA is unique. Each listing may have its own rules, budget, and amenities. Make sure to read the HOA before you buy a condo.

Although a property might look great for you, the rules can place restrictions that you cannot live with. This is something you don’t want to discover after the purchase. Do your research before making an offer.

3. A HOA’s Reserve and Budget Can Tell You a Lot

Research goes beyond the HOA rules and regulations. You can assess the health of a community by looking at its budget, reserve fund, as well as how many residents are late on their dues.

Be wary of warning signs like a high delinquency, outstanding debts or low funds. These signs are often indicative of poor HOA management.

4. Condos are an affordable alternative to single-family homes

Condos are often more affordable than single-family homes, even though they have a HOA. This is especially true for densely populated areas, where land can be a scarce commodity.

Condo buyers love the fact that they get more space for their money. A three-bedroom condo mortgage is likely to cost significantly less than one for a home with three bedrooms.

5. A Condo is often cheaper than a home.

You can expect lower insurance rates in addition to your mortgage savings. Condo owners don’t have to worry about the interior of their homes because HOAs take care of the exterior maintenance of the homes in their community.

Your HOA fee includes land, exterior and shared amenities. You will only need some dwelling coverage, liability insurance, and protection for personal property damage.

This post was written by Dayana Susterman Dotoli. Dayana is the head real estate agent for the Dayana has assisted over 150 individuals with buying, selling, and leasing at Tiffany House. The Tiffany House Residences is a 12 story tower,  offers 129 residences, including 1, 2 and 3-bedroom condominiums and townhomes, with exclusive, resort-style amenities and views of the Intracoastal Waterway and the Atlantic Ocean.