Are you looking to buy a Condo? If so you’re at the right place!

Buying a Condo in Layman’s Terms: A Condo is a unit in a shared building. These have 2 typical areas. Your living area (Your home) and the common areas (Hallways/Lobby). You are responsible for your living area, and the HOA handles everything in the common areas.

Welcome to your 1 stop shop for everything you need to know about buying a Condo! When it comes to buying, there are different rules about financing and dealing with the HOA (Home Owners Association). Added costs and minimum standards for the HOA.

Why working with Mark @ Geneva Financial makes a difference.

Experience, knowledge and a devoted Condo team to start! Going above and beyond is how I look at every deal. We not only know Condo purchases forward and back, but we have a devoted Condo team to handle the details to make sure nothing is overlooked! Their 9-5 job is to focus on your condo purchase getting done and nothing being overlooked. We do not just send off a questionnaire and hope for the best. We get more done in less time. If there are any issues, the condo team lets me know immediately so we can discuss it. Not only that, they are here to help find solutions if possible from a team that knows how to make this work. So as a buyer you can sit back knowing we have every angle covered. Closing a straight forward condo purchase is easy, but if something does come up, you want the best on your buying team so we can get you to the closing table.

What is a Condo?

Let’s start with the basics. Short for condominium, a condo is a single unit within a multiple-unit property. It can be one of many units in a shared structure, like a high-rise building, or it can be in a much smaller building with just two or three units.

Buying a condo is typically cheaper than buying a single-family home, which makes it an appealing option for first-time buyers and helps you start building home equity sooner. There are many similarities between renting an apartment and owning a condo. Many apartment buildings have been converted into individual condo’s, and vice versa. So the lifestyle is familiar with many renters.

With a condo, you may have some utilities included in the HOA dues, so costs can be lower. Check with your HOA to see whats included with your HOA Dues.

There is a trick though that you have to be aware of. The HOA may say that Gas is included with the HOA dues, so in your head you’re thinking cooking and heat is now unlimited. But from my experience, many HOA’s that offer this only allow electric heaters, and electric stoves inside the units. It almost makes the gas being included a gimmick since your electric bill is covering everything now and will be much higher than normal. The bylaws will tell you if gas appliances are even allowed in unit. At that point the included gas may only be there since the HOA pays the gas bill for the laundry (gas dryer) and hot water heater for example. There are a lot of variables with this, so if something says included, double check the unit to make sure it actually applies towards your bills. The last thing you want to do is assume, and find out you didn’t save on any cost.

Going from renting an apartment to buying a condo can be much less dramatic than going from an apartment to a single-family home. With a condo, you typically have a lower cost of entry and lower maintenance costs since the HOA repairs a majority of the building. You’re also typically located in a fairly dense urban setting with easy access to more amenities and mass transportation.

Anyone who’s thinking about buying a home should understand what the purchase includes. With a condo, no matter how big the building or property is, you own your individual unit. You also enjoy access to common areas and shared amenities, which might include parks, pools, playgrounds, fitness centers and other public spaces. (There is typically a monthly fee that covers the maintenance of these areas; more on that later.) Condo owners also pay for their own property taxes and utilities.

Shared areas of condos are usually managed by a condo association, which is a type of homeowners association. It typically acts as a supervisory board and hires a property management company to handle maintenance, communication with residents and other duties. Some may impose additional fees to cover shared expenses, such as unexpected building repairs or new amenities

Why buying a Condo is cheaper than a House?

One of the key points of differentiation between a condo and a house is price: Condos are typically cheaper. The median price for an existing condo or co-op was $371,100 as of June 2024, according to data from the National Association of Realtors — a sizable savings versus $432,700 for a typical single-family home.

However, the saying “you get what you pay for” rings true here. When buying a condo, you’re purchasing only the interior space of your dwelling unit. The land and other facilities are owned in common with the other owners of the complex. Condos also generally come with less space: You may not have your own backyard, for example, and the overall square footage tends to be smaller than a single-family home.

In addition, while house owners are relatively free to make changes to suit their personal needs and tastes, condo owners may face challenges getting permission to remodel to their liking. If the owner of a single-family home needs to replace the windows, you choose what style, color and size to buy. With a condo, the Association will have a say.

It’s important to take the cost of the condo association’s monthly fees into consideration when you budget for your home purchase as well. These fees might not be set in stone. Just like property taxes, there is some risk associated with HOA fees increasing over time or with large, one-time special assessments.