What to Know About Buying a Condo

Is Condo Living Right for You? Here’s What You Should Consider

Buying a condo can be an excellent choice—especially for first-time buyers, downsizers, or those who want to live in a prime location without the upkeep of a single-family home. But while condos come with unique benefits, they also come with a few surprises if you're not prepared.

Here’s what you should know before buying a condo in today’s market.

1. What Exactly Is a Condo?

A condominium (condo) is a privately owned unit within a larger building or community. You own the interior space, but share ownership of common areas such as:

• Hallways and elevators

• Landscaping and parking lots

• Amenities like pools, gyms, or clubhouses

The Homeowners Association (HOA) manages and maintains these shared spaces, which is part of what sets condos apart from other home types.

2. Monthly HOA Fees Are Mandatory

Every condo owner pays monthly HOA (Homeowners Association) fees, which cover:

• Building maintenance

• Landscaping

• Trash removal

• Insurance for shared areas

• Reserve funds for future repairs

What to ask:

• How much are the monthly fees?

• What do they cover?

• Are there any upcoming fee increases or special assessments?

These fees are non-negotiable and must be factored into your overall budget.

3. You’ll Be Subject to Community Rules

HOAs have rules—called Covenants, Conditions & Restrictions (CC&Rs)—that all residents must follow. These may include:

• Pet restrictions

• Rental limitations

• Guidelines on noise, parking, or renovations

Before buying, always review the HOA documents to make sure you're comfortable with the rules.

4. Financing Can Be Slightly Different

Some condo buildings are not approved by all lenders, especially if:

• There are too many rentals in the building

• One entity owns too many units

• The HOA has financial red flags

Tip: Work with a real estate agent and lender experienced in condo transactions. They'll help you avoid buildings with financing issues.

5. You Still Need Insurance—But It’s Different

Your HOA typically carries a master insurance policy that covers the structure and common areas. But you still need your own condo insurance (HO-6 policy) for:

• Personal belongings

• Interior walls, floors, and fixtures

• Liability inside your unit

Check what the HOA’s policy covers so you don’t pay for duplicate coverage—or leave gaps.

6. Resale Value Depends on the Building

When buying a condo, you're not just buying the unit—you’re buying into a community. Your future resale value may depend on:

• The building’s condition and reputation

• HOA management and financial health

• Neighborhood development and demand

Ask: Are other units selling quickly? Is the building well-maintained? Are there any major repairs coming up?

7. Condos Often Offer Lifestyle Benefits

Many buyers are drawn to condos because they offer:

• Low maintenance living

• Access to amenities like pools, gyms, or concierge services

• Prime locations (downtown, near beaches, or walkable neighborhoods)

If you value convenience and community over yard space and privacy, a condo may be a great fit.

Final Thoughts

Buying a condo can be a smart, affordable, and lifestyle-focused decision—as long as you understand what you’re getting into. From monthly fees to community rules and HOA finances, it’s important to do your homework before making an offer.