Young professionals all over Cincinnati are choosing to take advantage of the current real estate market and purchase a first home. Some are looking for single family houses and some are considering condominiums. Before you dive right into the market for a condo, there are some critical pieces of information you should research. Unlike single family homes, condos come with additional benefits and responsibilities. As a real estate agent, I always make sure my buyers pay close attention to the following things before making an offer:

1. Read Between the Lines
Take a look at the minutes of the condo association board meetings to see what the building-wide challenges are. Even if there aren't any complaints, reading the minutes will reveal the sorts of projects that are underway at the complex - projects the seller may have neglected to mention. You would do the same thing when purchasing a used car, so why not with a condo as well? Always ask for the budget and financial statements to review them for yourself.
2. Who is Paying Their Bills?
Make sure the association is collecting the dues from everyone on time! If people aren't paying their association dues on time it can impact the entire building.  Carefully consider buildings that are underfunded. You may see a 'special assessment' in your future to make up the difference for years of other people not paying their dues.
3. Planning for Repairs
Associations take on a lot of building maintenance so make sure the reserve fund is adequate for roof replacement, driveway repaving, and other exterior maintenance: such as gutter cleaning, repainting of doors or siding, or if a high rise boiler or central air replacement.
out and funded. If reserves aren't adequate be sure to ask if there are regular 'special assessments' for recurring projects like painting, paving, etc.

4. Insurance, Insurance, Insurance!
Get a copy of the certificate of insurance, which is a summary of the association's policy. First see if the replacement costs covered by the policy are an accurate estimate of the cost of rebuilding your home with the same level of finish that it was when you purchased it. Then make sure that the policy has a building-ordinance clause, which means that the insurance will cover the cost of bringing the building up to code if there is any rebuilding to be done. Finally, make sure that you understand exactly what the association policy covers and what you are responsible for. You should be sure to get an insurance policy to cover the contents of your home. Umbrella policies held by the association will almost never cover your personal belongings or furniture but only the structure itself.
5. Legal Compliance
Buying a single-family home without an attorney is no big deal for many people. But with a condo, there's so much more involved. If you want clarification on the bylaws of the association, ask your real estate agent to put you in touch with a local real estate attorney and have him or her go over it with you. Also see if there is any pending litigation by any residents against the association or the management company that the association has hired.
6. Can I rent My Unit?
Certain associations have a limit on the number of units that can be rentals at any one time. If you plan on renting your unit out down the road make sure you know the rules and plan in advance.
7. Professional Management
If the complex is professionally managed, check out the management company as thoroughly as you check out the association. Ask other owners. Ask people in nearby buildings. And be sure to interview the day-to-day manager directly. Be very careful to read all the bylaws because in some cases the management association can foreclose on your home if you miss your HOA dues.
8. Read The Books
Read the condo documents for anything out of the ordinary and think in advance. Are there restrictions on commercial vehicles, pets, loud music, or even placement of 'Real Estate Signs'? Remember when you go to sell your condo you want to know you attract the next buyer.
The bottom line is that condos can be great starter properties if you take the time to carefully review everything that is involved with owing one. Make sure that your real estate agent reviews all of the documents and helps you understand all of your responsibilities and the responsibilities of the HOA.
9. New Construction
Also keep in mind, if you buy a condominium in a complex that is still under construction especially in this economy, find out how many more units are being built. You don't want to be competing with new construction in the same complex because developers have deeper pockets than owner occupants.
10. Financing Condos
Financing condos can be tricky but there are great loan programs out there if you do your research or you are working with a Realtor who is familiar with them. Some complexes are approved for FHA (federally backed loans by HUD which require 3.5% down). If the condo that you want to purchase is not approved for FHA financing don't worry, there are banks who offer 3% and 5% down conventional loan options for condos as well.

If you have questions about buying or selling a condo, or a single family home please contact me at 513.518.1140 or Alison.Moss@Comey.com