Considering a condo? What you need to know before you buy
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A condominium is the ideal home for many people, but shared ownership means there are special points to consider.
People who want to make the switch from renting to owning often choose a condominium as their first “real home.” Other buyers purchase a condo as a part-time holiday retreat or are attracted by a lifestyle that has fewer responsibilities.
What’s a condo?
A condominium is not the same as an apartment, although condo developments may include apartment-style complexes, townhouses or converted multi-family dwellings. It is different from other multi-tenant buildings in that the developer has legally declared it to be a condominium and units in the building or complex are purchased rather than rented. In most states, this means that the development falls under specially designated laws and regulations applied to condominiums.
Shared spaces
A condo owner buys title to his or her individual unit, up to the walls, but not including them. There are also common areas of the development, such as hallways and stairwells, dividing and outer walls, pools, fitness centers, rooftop gardens and barbecue areas. These are under shared ownership and every unit owner holds an interest in these spaces. Every condo development has a unit-owners' association that manages the maintenance and repair of these shared areas. The association is elected by the condo owners and makes decisions in the interest of the community.
Fees and associations
The condo or homeowners association budgets and determines the fees for all units, usually based on the size of each unit, the number of units occupied and the projected expenses for maintenance and repair.
Condo costs
- Down payment, mortgage and property tax.
- Maintenance fees. Every condo owner pays fees to help maintain the building, pay the salaries of concierges, handymen or groundskeepers, and provide facilities such as a pool, gym or gardens. The fees are paid monthly and are subject to change.
- Special assessments. These fees may be needed when an unexpected repair or planned modification exceeds the cost of the condo fees collected.
Questions to ask
- What do unit owners think of their condo association? Ask owners for comments or complaints about the association's activities and reputation.
- Does the condo association maintain a reserve fund to pay for unexpected and possibly expensive repairs? This will help you assess whether you can expect special assessment fees.
- Are there any pending legal actions between owners and developers or the association? Legal disputes can be costly.
- Are there any plans to add to the facilities, such as a swimming pool or gym? Such projects can mean a rise in fees. The minutes of condo association meetings should reveal any such plans.
- Is the development in good repair? Are repairs and maintenance handled in a timely manner? Before buying any condo, have the particular unit and the entire structure inspected to identify potential problems.
The rules
Condominiums are governed by a set of rules called Covenants, Conditions and Restrictions (CC&Rs), which are enforced by the condo association. Anyone who is thinking of purchasing a condo should carefully consider the rules, which vary from one development to another. The CC&Rs may impose restrictions on noise levels, renovation projects, pet ownership and renting.
A condominium can be a great purchase under the right circumstances, but potential buyers should be comfortable living within certain rules and restrictions and in close proximity to others.
Developers
Buyers may want to research other work a developer has done to learn if there have been problems with past projects. Find out if the developer is still in business and whether it is financially stable. Because developers do not generally retain a long-term interest in a building, their work is important. While a home inspection can turn up major structural flaws in the building, if the developer is no longer in business, the condo association may have little or no legal recourse if other major flaws are discovered in the property later on.
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Get Your Garden Ready for Winter
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You’ve toiled all spring and summer weeding and pruning, watering and fertilizing so your garden would bloom. Now that the cooler weather is coming, your garden is going to sleep and you can relax -- almost. Before you go into gardening hibernation, there are a few things you can do to protect your garden and make things easier on yourself in spring.
Before the frost
- plant new trees and spring bulbs like tulips and daffodils. Depending on your climate, you can do this anywhere from September to December. A good rule of thumb is that if the soil can be worked, things can be planted.
- buy polyspun garden fabric to protect annuals and summer vegetables if the forecast calls for frost.
- take seeds or cuttings of plants you want to grow indoors or plant for next year.
- water trees, which can dry out from wind and sun, particularly if it has been a dry summer. Fertilize trees that have been transplanted within the last year.
- weed. This is not essential, but it will save you time in the spring. Plus you don’t want ugly weeds to seed and then bloom along with your tulips.
- rake. Remove leaves while the grass underneath is still green, so it can absorb as much light as possible before the snow. Raking beds will also keep living plants from suffocating. But don’t throw the leaves away; cut them up and put them aside for mulch or compost.
- dig up sensitive bulbs like gladioli and dahlias, if you live in a particularly cold region. Store them in vermiculite in a paper bag in a cool and dry spot.
- give your roses some TLC. Ask your garden center or consult a gardening guide about what’s necessary for your type.
After frost
- clean out annual and vegetable beds. Throw out any plants you suspect to be diseased or infested with bugs. The rest you can put in the composter.
- cut perennials back almost to the ground -- unless they add color to your garden in winter -- then apply a layer of mulch. If you don’t think you will have time to mulch, don’t cut back the old plants, as the stalks and leaves will give some protection to the roots.
- apply a two- to four-inch layer of mulch on top of perennial, shrub and bulb beds. It will protect the beds from weeds and the elements and trap moisture. You can use chopped-up leaves from your lawn or other loose materials like pine needles, wood chips, chunk bark or coarse gravel for the perennials and shrubs. Don’t put down un-shredded leaves or other matter that compact easily because it will suffocate the plants. Cover bulb beds with evergreen boughs. Trees need a thicker layer of mulch than flower and shrub beds, up to six inches thick.
- wrap trees, especially recently planted trees or sensitive varieties like honey locust or Japanese maple. Wrap in burlap from the base of the trunk to the second or third branch, allowing some overlap to allow water to escape, then secure at the crown. If your evergreens brown over the winter, it’s because the wind has sucked out their moisture. You have two options to protect your trees: a chemical antidesiccant spray or windshields. Antidesiccants are not universally accepted, but you may still find them effective. Windshields are easy to erect: simply place wooden stakes in the ground and wrap burlap around them.
- clean and store tools, ceramic pots and birdbaths. Putting them away before the harsh weather starts will prolong the life of these garden essentials.
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Q: I'm about to put my home on the market. What factors should I consider when determining how much to list it for?
A: The ten main factors that influence the value of your home are:
- Interest rates: The lower the interest rates, the more buyers can afford to pay.
- Supply and demand: Are 'for sale' signs springing up all around the neighborhood? If there are a number of homes similar to yours on the market, consider them your competition. What can you do to set your home apart and make it desirable for a majority of potential buyers? On the other hand, a small number for sale can result in competing bids that send prices up.
- Economy: Is the economy improving or sliding? This will affect buyers' confidence in their ability to manage debt.
- Location: Are you in a desirable neighborhood, with key services such as schools, doctors, and shopping nearby? Are there factors that make your neighborhood less desirable, such as environmental issues or traffic problems?
- Condition: Have you updated features and kept up with repairs? Is the house clean? Does your house make a good first impression? (This is called "curb appeal.") How much can you reasonably do to fix it up for sale?
- Timing: Do you need to sell quickly or can you choose your time?
- Size: Will your home appeal to a growing family or to those who are downsizing?
- Amenities: Does it include features that are popular, such as low-maintenance landscaping or granite counter tops?
- Terms: How flexible are you with respect to the sale? What's excluded? If you are downsizing and have substantial equity, have you considered offering financing? Carrying financing can make your home very appealing and help you sell for the maximum price.
- Attitude: How committed are you to selling now?
To determine your home's value:
- Research the housing market in your area. Browse the Internet, local newspaper ads and free 'For Sale' publications. Visit open houses in your neighborhood to get a general idea of the current market.
- Get a comparative market analysis (CMA) from a REALTOR®. A CMA compares homes that are currently available and those that have sold in your neighborhood in the past year. The more similar the features -- square footage, number of rooms, lot size, etc. -- and the more recent the data, the more accurately it reflects the current market. Don't confuse listing price with sold price -- the most important factor in the CMA. REALTORs® usually do CMAs for home sellers at no charge.
- Have your home appraised. An appraisal estimates your home's market value. A lender will require an appraisal to finance a prospective buyer. For residential properties, a professional appraiser will either compare your home to similar properties that have sold in the area or, for new properties, estimate how much it would cost to replace the existing structure if it were destroyed.
To maximize your home's value:
- Eliminate clutter and clean. The more you can clean your home and keep it tidy, the easier it will be to show, and the more buyers who will see it at its best.
- Paint and repair. First impressions count. Improve the appearance of your home with a coat of fresh paint. Take the time to fix any dripping taps, broken tiles or cracked widow panes.
- Consider hiring a home stager. A professional home stager can help you enhance the selling potential of your home by showing you how to arrange your home to appeal to buyers. Whether it's rearranging furniture, minimizing belongings, lending you accessories or renting furniture, they work with you to show off your home's best features. Many will also coordinate hiring professionals to do cleaning, painting and minor repairs.
What's the right price?
Generally, aim for your list price to be within 2.5 to 5 percent of what you expect the selling price to be. Pricing strategies vary with the market. If it's sluggish, price lower. If it's active, price close to your expected selling price to stimulate competing offers.
Remember, your home is easiest to sell when it's first listed. During the first couple of weeks, you'll get a flurry of interest on the part of agents eager to preview it for their clients. If you price it too high and they can't sell it, your home may linger on the market and become old news. Prospective buyers may think you're becoming desperate and lower their offers. As a result, you could end up having to accept less than you normally would have received.
Get a free market analysis by a pre-screened agent.
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