What is the total cost? 

Condo fees, additional HOA fees, insurance costs, and taxes are all things to consider when purchasing a condo.

Is the condo association professionally managed or “self-managed”? 

Hiring a professional management co. may help condo associations stay on top of current law requirements and easily produce resale packages to potential buyers.

Has there been a reserve study done in the last 5 years? 

Many states now require a reserve study to be performed at least every 5 years.

Are there any pending or recent special assessments?

Special assessments are one-time fees that can be imposed by the HOA for unexpected repairs or improvements. Find out if any are planned or have recently occurred.

What do the condo/HOA fees cover?

Condo fees can cover the obvious like amenities and common areas, however, they can also cover master insurance policies, hot water, cable and internet, windows and doors. It’s a good idea to know going in, what you are responsible for as a condo owner.

Are there any restrictions on renting?

As more and more investors purchase condos for vacation renting, it’s a good idea to know any restrictions prior to the purchase.

What pet restrictions might be in place?

Breeds, weight limits, and who can and cannot have pets are all restrictions that may be in place under the condo rules and bylaws.

What is the financial health of the HOA?

Ask for the HOA’s financial statements to ensure they are well-managed and have adequate reserves for future maintenance and repairs. One important note, government-backed loans require at least 10% of the collected fees go towards the reserve fund.

How many units are owner-occupied?

Excessive investor-owned properties in a condominium may hinder the ability to obtain a loan. Other things that may affect the lending process are; an individual that may own more than 10% of the building, a classification of a “Condotel”, a condo association not having adequate insurance and allocated commercial space exceeding 25% of the building.

Finally, one last thought, working with an experienced REALTOR may help avoid the pitfalls of condo ownership before they become a reality.