Buying A Condo?

Condos are a great choice for many. To make sure there are no surprises, there are a few things you should research buying. There are many choices here in Waltham MA and they come in all shapes, sizes, and conditions. Some were built as condos, many were conversions of older Waltham multifamily homes.  While home inspections are important, equally important is looking at the finances and management of the condo association.   Here’s just a few things you should be checking out.

· Overall condition of the property. Is the property appear to be well maintained? If not, why not?

· Condo fees and budgets. New condo conversions tend to have what seems to be fair monthly fees.  Low condo fees are attractive to buyers.  But are they enough?  Does the line item for snow removal seem reasonable for heavy snow winters?    Is the amount dedicated to maintenance enough? When everything is new, the fee may only be based on things like landscaping and master insurance.  A healthy condo association will budget for expected future items such as replacing a roof, update common spaces, repave a parking lot or replace a heating system.  Be sure that there is a reasonable amount of the fee going to reserves that will grow enough to cover those kinds of things, not to mention unplanned repairs.

· Speaking of newer developments or conversions, many times, there is a minimal amount placed into the reserve account with the idea that it will grow as time goes on and condo fees are paid. As long as the physical condition of the building is in great shape, low reserves may be enough until the fees help grow that amount. Mortgage lenders only require two months’ worth of expenses to be in the account in order to obtain financing, so be sure there is enough to cover short term expenses such as plowing for an unusually heavy snow season.

· One important piece of research is to make sure everyone’s condo fees are paid up. If it’s a small association and one or more of the owners aren’t paying their fees, it could lead to costly litigation to force them to pay. In the meantime, the association still has bills to pay!

· Are there any special assessments now or being contemplated in the future? If they have a history of them, it may indicate poor management and big bills later.

· Lastly, be sure to review the rules and regulations. Are pets allowed? If so, are there any restrictions on how many, what kind or where they can ‘go’? If there is guest parking, are there rules to stop any one person from hijacking the space? Can owners rent out their units? In small associations, if too many are rented, it will hurt your ability to resell as lenders require a certain percentage of owner occupancy.

These are just a few of the many things that you will want to research and consider when buying a condo. Don’t be afraid to lean into your real estate agent and attorney to help you with these things. Condos are a great alternative to a single family home, especially here in the Waltham Ma real estate market. Just be sure to do your homework!