There are many reasons to buy a condo in todays market. They are both a great entry point but also a good exit from a large family house. So both advantages & disadvantages of owning one.

Condo Advantages:

The many reasons for buying a condo instead of a house include (1) usually less expensive than buying a similarly sized single-family house; (2) exterior maintenance is the responsibility of the homeowner’s association; (3) the security of leaving your condo for an extended period without worry; (4) homeowner tax benefits similar to houses; (5) pride of ownership from being an owner rather than a renter; and (6) potential resale profit as the condo appreciates in market value. However, local supply and demand greatly affects this potential advantage.

Condo Disadvantages:

Depending on your viewpoint, potential disadvantages might include (1) being subject to the rules of the condo homeowner’s association; (2) unexpected increases in monthly fees and special assessments for maintenance costs; (3) policies and rules you don’t like — such as no pets or no rentals; (4) poor-quality maintenance or management which affect enjoyment and resale values; (5) poor soundproofing (the number one complaint of condo owners); (6) lack of freedom to do as you wish, such as have noisy parties; and (7) neighbors you don’t like or who don’t like you.

Lastly, in order to minimize buying a bad condo think about and ask the following questions.

1. What is the financial condition of the homeowners association?
2. Have they conducted the state mandated “reserve study”?
3. How do their HOA fees compare to other similar condo complexes?
4. Is the HOA professionally managed by a reputable company?
5. What percentage of units are renter occupied?
6. Ask current residents what they like & dislike about the condo complex?

Condominium buyers can’t ask too many questions because buying a condo is much different than buying a house. By asking the right questions, one can avoid costly mistakes.

Ken Glidewell,  Luxury Property Specialist