Once you have found the condominium that fits your dreams, one also has to look at everything outside the condominium.
Deferred maintenance. As an owner you have a financial obligation to pay for the maintenance. Does the complex looks like its well maintained? Does it look like the maintenance is being postponed or deferred? Deferred maintenance is maintenance that has been put off, often because the condo association doesn’t have the money to pay for it. This can be a sign of financial problems with the association, and it could lead to big repairs down the road that you’ll be responsible for.
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Shoddy construction. If you see signs of shoddy construction, such as cracks in the walls, uneven floors, or leaky pipes, it’s a good indication that there are underlying problems with the building. These problems could lead to costly repairs in the future.
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Inadequate parking. If there are not enough parking spaces for all of the condo owners, it could be a major inconvenience for you or your guests. If there’s assigned parking, is there adequate guest parking? Does the association limited the number of cars a unit can have?
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Poor sound insulation. Poor insulation can make your condo noisy and uncomfortable. If this condominium has a unit above it you may want to visit when you know the owners above it are home. Some people walk heavily, some like their music turned up or heavy bass. Talk to the neighbors to see if there have been complaints. Solving sound issues can be difficult and expensive.
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Unhappy residents. Part of your due diligence is to talk to the neighbors. If you talk to the residents and they seem unhappy, it’s a red flag. This could be a sign of problems with the condo association, the building itself, or the neighborhood.
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High HOA fees. HOA fees are the monthly or annual fees that condo owners pay to cover the cost of maintaining the common areas and amenities of the building. High HOA fees can be a burden on your budget, so it’s important to factor them in when you’re considering buying a condo. Have there been special assessments? This is a sign that the board is not anticipating maintenance projects or not funding reserves.
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Lack of transparency. Ask your realtor to get the disclosure documents as soon as you place your offer. Many times realtors consider these documents a nuisance, as the they can raise questions or red flags that then have to work through. Read the meeting minutes and look over the financials including the reserve study. If the condo association does not readily supply these its a red flag. If they are slow to provide the disclosures then I recommend extending you due diligence period. A delay in providing these disclosure could mean that there are problems that the association is trying to hide.
