Buying a condo is like buying a house – only different! While you won’t have to be concerned about maintenance – that’s the Association’s job – you should be concerned about the Association. Some things to look out for:
- How is the Association run? What are their procedures for repairs and complaints? How many on the board?
- How much is in cash reserves? If not high enough, condo owners could be hit with a special assessment in an emergency?
- What is the delinquency rate of condo owners who don’t pay? Fannie Mae, Freddie Mac, and FHA do not approve condominiums with the delinquency rate above 15%.