If you are searching for a Philadelphia home and looking at all of your homebuying options you might decide that purchasing a condo property is the perfect fit for your lifestyle. A condo can be a great choice for someone looking for less demand on home maintenance or a close walkable location to everything you need while eliminating the need for using a car. A condo is a great way to reap the benefits of homeownership but it can differ from buying the average single-family home. Here is some good information to know about purchasing a Philadelphia condo.
What is a Condo?
There are a few different property types that can legally be classified as a condo. What sometimes gets confusing is a detached condo property. The most traditional condo property however is a property very similar to an apartment, but instead of renting you are purchasing a home. You own the property within the four walls of the unit and gain equity on your purchase.
You will also have a stake in the ownership of the shared spaces in the condo community. This will mean that a condo owner will be required to pay condo association dues to help take care of the common shared areas.
Important Things to Consider When Purchasing a Philadelphia Condo
- Health of the Condo Association: Just because there is a Condo Association in place and the community can supply a potential buyer with information about who is on the board and when meetings take place, does not mean that the condo association is a healthy operating unit. Not all condo communities have a healthy Condo Association. Before buying into a condo community make sure you not only read through your requirements as a homeowner but take a look into the operations of the condo association. Are the common areas and community amenities actually in good shape and well maintained? Is there plenty of money in the condo association reserves to take care of emergency issues? Does the board hold regular meetings for every homeowner to attend? Are the residents taking an active role in the community or is it just the board doing the bare minimum? A condo community that does not have an optimally running Condo Association will not be a pleasant neighborhood environment to live in, no matter how nice the condo is.
- Added Expense of Condo Association Dues: Condo Association Dues are a required mandatory payment of every homeowner in the community. The condo association reserves the right to take possession of your home if you do not keep up with your condo dues. The condo association can also call for a vote on increasing the required dues each property owner needs to pay. Condo dues can come as yearly, quarterly, monthly, etc. payments. It depends on what the association sets for the payment schedule. This means that the price of your condo is not the full price of buying the condo, you will pay dues as well and they could possibly change. They will not change without a vote but even if you vote no others could vote yes and an increase in dues can take place. It is good to not overextend your budget on the price of the condo. Make sure you have extra funds to take care of ownership dues and a little extra beyond that just to be prepared for an increase.
- Rules for the Exterior of the Property: Outside spaces are under more supervision as compared to owning a single-family property. It is nice to not be responsible for the exterior maintenance of your condo (in most communities) but it can be a trade-off for having more rules of what you can put in the area outside your front door or on your back balcony. It is always a great idea to obtain a copy of the CC and Rs so you know what is expected from condo owners in the community. Some condo associations will have more requirements than others. You want to make sure that the rules seem reasonable for your lifestyle and not overwhelming.
- Resale: Some condo communities will have restrictions on selling your home. Make sure you are aware of the resale process. Some COAs (condo owner associations) will require the approval of the next buyer. This could take more time to sell the home.
A condo property can be a great home investment for Philadelphia buyers looking for a home closer to bustling areas of the city. Or for a buyer who wants the benefits of wealth building and a stable home payment that will not increase without the large upkeep and maintenance responsibilities of a single-family property. Making sure to know all the details of condo ownership and living in a condo community will help you decide if condo ownership is right for you.
If you are searching for a home in Philadelphia, I am here to help. Whether you are looking for a home in a walkable location with less maintenance, or a sprawling property in the mainline suburbs to spread out, contact me any time with any greater Philadelphia real estate needs.