The Pros and Cons of Condo Living

If you’re thinking about buying a new home, a condo can be a smart choice. Maybe you want to reap the rewards of homeownership, but you just don’t have time for maintenance. Or maybe you’re an empty nester who is ready to downsize. Whatever your situation, a condo is worth consideration.

So, if you’re toying with the idea of condo living, here are some benefits — and drawbacks — to factor into your decision-making process.

Maintenance
REALTOR^® Laura Smith with RE/MAX Real Estate Professionals says it’s first important for buyers to understand that there are two types of condos — traditional and site.

“With a site condo, the homeowner owns the property and the land, and is typically responsible for all interior and exterior maintenance,” she said. “With a traditional condo, exterior maintenance is usually covered, and some associations may include utilities, like water and sewer.”

Typically, in the Lansing area, both site and traditional condo associations cover lawn care, snow removal and trash pick-up. However, many traditional condos also take care of exterior work, such as driveway maintenance and siding and roof repair.

HOA Fees
While maintenance-free living is definitely a plus, the homeowners association (HOA) fees that come with that lifestyle can be a negative for some buyers. These fees are collected outside of your monthly mortgage payment and the amount varies depending on the association. Association fees are typically used towards building maintenance and amenities, such as common areas, fitness centers, pools, etc.

In addition to standard HOA fees, there may be times when a major expense pops up. For example, let’s say you own a traditional condo and reach a point when all of the properties need new roofs. If there is not enough in the association’s reserves to cover the costs, the HOA may charge a special assessment.

Smith says when considering a condo, it’s important not only to ask how much is in the HOA reserve fund, but also to find out how HOA increases are determined and how often they occur, and request a history of HOA dues and special assessments.

“It’s also good to ask about how the HOA is governed,” she said. “Is it a management company or is it resident-run? There are some great management companies out there, but many buyers prefer associations run by the homeowners themselves because they have a vested interest in how things are handled.”

Community Living
When living in a condo, you’re immediately part of a small community. Some associations may offer events that bring residents together and, like we mentioned earlier, some have community pools and/or fitness areas where you can meet your neighbors and potentially make new friends. Because you’re in such close proximity to other residents — sometimes sharing a wall — condo living can offer a sense of security, which can be a major plus, especially for someone living alone.

On the other hand, close-quarters living can be a negative for buyers who want a bit more privacy. Families, especially those with small children, may prefer a single-family home where they don’t have to worry about noise level. Also, traditional homes typically offer more square footage and larger yards, making them a better option for families who need more living space for kids and pets.

And remember, this community living does come with some rules and regulations. As part of an HOA, you are often limited in what you can do with your home. Rules may dictate what changes you can make to your exterior, what types of lawn decorations you may have, how many cars can park in your driveway, and what types of vehicles are allowed. Some may have restrictions on the number and/or size of pets, while some may not allow pets at all. 

“For the most part I find the rules to be pretty reasonable,” said Smith. “Regardless, I always have my clients read through the association bylaws so they can familiarize themselves with the rules and make sure they’re comfortable with everything before making an offer.”

Condos can offer a lot of benefits, including the fact that they’re generally less expensive than a single-family home. But these properties aren’t right for every buyer. As with any real estate transaction, it’s wise to enlist the help of an experienced REALTOR^® who will ask the right questions to determine if condo living is the best option for you.

“Overall, I think condos are really thriving,” said Smith. “We are seeing a lot of buyers today who are looking for that maintenance-free, community style living, and the biggest downside is that there are just not enough condo options on the market.”

If you want to know more about condo communities in the Lansing area, visit the Greater Lansing Association of REALTORS^® at www.lansing-realestate.com for a list of local agents who can help.