Considering a condominium? Take the time to research the community, talk to residents, review the condominium documents, and study other data to answer these questions:
- What’s the condition of the unit, the building, the entire complex that you’re considering?
- Are common areas well maintained?
- How many condos are for sale? (A large percentage could be a sign of problems.)
- What percentage of the units are owner-occupied? (Many lenders won’t back loans if the majority are rented.)
- How much are the condo/association fees and what do they cover?
- Does the association have adequate reserves for emergencies and renovations? (If not, you could face a special assessment.)
- What’s the temperament of the condo board? (Board minutes could reveal controversies.)
- Are there pending lawsuits against the association or judgments you might have to help pay?
- What does the association’s insurance cover? (You may need supplemental insurance to protect everything else.)
- How much outstanding debt does the association have?
- What percentage of the units are in arrears on their dues?
- Does the seller owe back fees or assessments that may become your responsibility when you buy?
- What’s the neighborhood like? (Ask neighbors and walk the area at night and on weekends to check when residents are home.)
- Does the unit come with reserved parking?
- Is there adequate additional parking for guests?
- Will you have extra storage space for bikes, paddle boards, and the like?
- Is the association managed by a qualified professional company?
- Does management handle owners’ requests and complaints quickly?
- Do association rules limit your ability to rent the unit?
- Will restrictions prevent you from changing visible elements such as the color of the front door or your window coverings?
Sources: Realtor.com, Investopedia, Bankrate.com, Kiplinger.com, Federal Housing Authority
