The Savvy Condo Buyer's Guide: Must Have Needs and Optional Wants
One of the first steps in the condo buying process is defining your condo buying criteria - your 'must have' needs and your optional, 'nice to have' wants. Unlike a single family house, it requires considering unique factors, from amenities to shared property. Whether you're a first-time buyer, investor, or downsizer, navigating the condo market can be complex. In this guide, we're going to delve into some key things you should think about when aligning your condominium purchase with your lifestyle and financial goals.
The goal is to define your 'must have' needs and your 'nice to have', optional wants. The needs are items you must have and you won't consider buying without them.
Don't get to hung up on getting everything exactly right because what is important to you will evolve over time. As you begin looking at places in person, your tastes will change. You might realize that what you thought was a must have, isn't that important. You might also realize something you never thought of before, becomes a necessity. Discussing these with your real estate agent will give you a reality check.
Price: Balancing Value and Affordability
Price is obviously an important criteria when buying a condo, but when it comes to condos, it's not just the purchase price that matters, but the monthly costs that can make or break your financial plans. Consider the condominium fees, which can vary widely depending on the amenities and services they cover. These dues often include common area maintenance, security, and - in a luxury building - premium services like valet parking or a 24x7 front desk.
The important number to keep in mind is your total monthly payment. Make sure that fits in with your personal finance goals. Your monthly payments will be the sum of your mortgage payment + property taxes + condo association fees + insurance + utilities. Some condo fees include all or some utilities so it is important to know what they cover. Opting for a lower-priced unit with exorbitant condo fees might cost you more in the long run. On the other hand, skimping on fees that provide crucial services or cater to your lifestyle can lead to dissatisfaction with your investment.
Your mortgage payment will be greatly affected by the down payment you make and the interest rate you get on the loan. A higher down payment will result in a lower monthy payment. Whether the condo is an investment property or primary residence or vacation home will also determine the interest rate on your loan. If you are a first time buyer, don't forget to factor in closing costs.
Location: More Than Just an Address
Location is a perennial adage in real estate, "location, location, location", and for a good reason. A condo building's location dictates not only its proximity to life's necessities but also its resale value and rental potential. When evaluating the location of a condo community, keep the following in mind:
Proximity to Area Amenities
Is the condo within walking distance to grocery stores, restaurants, and entertainment? The higher the convenience, the broader the appeal for owners and tenants should you choose to rent out your property.
Accessibility to Transportation
Is the building near a metro stop? Does it provide easy access to major highways? A prime location should facilitate both daily commuting and weekend adventures. If you are commuting to a new job, always check the commute time during actual hours you will be working. A Sunday drive can be vastly different, time and tolls, than a Monday morning in rush hour traffic.
Walkability
Evaluate the walkability of the community. Are you able to walk to local shops, restaurants, gyms and nightlife? Or do you need a car to get anywhere? One of the big attractions to condo living is the ability to ditch your car and walk to so many things.
Location within the building
The location within the building is another important factor to consider. Many buildings have a more desirable side for the view or less noise. Sometimes it is the floor level that matters - going up one floor can be the difference between a million monument view or looking into a brick wall.
Size and Layout: The Essentials of Comfort
Condos come in various configurations, from small studio units to sprawling luxury accommodations. Key factors to consider include:
Bedrooms & Bathrooms
How many do you need? What layout works best for your lifestyle? Some people prefer a master bedroom with an en suite, while others may prioritize a convertible den or extra space for a home office.
Square Footage and Floor Plan
Is the living area spacious enough to accommodate your furniture and provide a comfortable living space? Think about how you'll arrange your belongings and envision the flow of your daily routine.
It isn't all about the square footage though. You need to see how the space is arranged. Does it have a long hallway with wasted space? Do you prefer a more modern, open floor plan?
Storage Space
In a condo, space is at a premium. Assess the availability of closets, consider if the unit comes with a storage unit, and evaluate additional storage solutions within the building.
Unit Features: The Details That Matter
The devil is in the details, and when it comes to your condo's features, these details can significantly impact your comfort and the value of your unit. Pay close attention to:
Flooring
Are there hardwood floors, known to increase a unit's value, or carpet, which adds a touch of warmth and comfort to the space?
Outdoor Space
Is outdoor space like a balcony or a patio a must have for you? Or does the condo building have easily accessible outdoor space you can use?
Kitchen
The kitchen, as the heart of any home, should embody functionality and modernity.Is there ample counter space, and durable cabinetry? Do you need a gas stove or do you prefer electric?
Bathroom
Check for functionality and aesthetic appeal. Updated fixtures and tiling can provide a spa-like experience, while a lackluster bathroom may require immediate renovation. Do you prefer a standup shower or a tub? Or one of each?
Fireplace
A fireplace adds a cozy ambiance and can be a significant selling point. However, if not well-maintained, it can be a source of future costs and headaches. If not used, then it is just wasted wall space. Fireplaces can be either wood-burning or gas or even electric.
Building Amenities: The Community Within
One of the significant draws of a condo is the access to shared amenities, which can extend the living space well beyond the four walls of your unit. Popular amenities include:
Fitness Center
Gyms and yoga studios can save time and money on external memberships. Fitness centers in condos come in a wide variety from small rooms with a few pieces of cardio equipment to full fledged gyms with cardio machines, weight machines, barbells, and lifting platforms.
Swimming Pool
A swimming pool can add value to your condo, but also added expense in the condo fee. Most pools are outdoor pools open from Memorial Day to Labor Day. A few buildings will have indoor pools open year round.
Security
In addition to your unit's secured access, does the building have a front desk and/or security system? Are there security cameras throughout? Peace of mind is invaluable, particularly in urban areas.
Grilling Area
Since county ordinances prevent most condo owners from having any open flame grill (gas or charcoal), a grilling area can be a nice amenity. Some buildings take it up a notch and in additional to several gas grills, will have a bar with chairs where you can sit and eat.
Rooftop Terrace
Arlington has some of the most beautiful views of downtown DC. Some buildings have rooftop terraces with panoramic views stretching from the National Cathedral to the DC monuments to the Masonic Temple in Old Town Alexandria.
Party Room
If you need more space to entertain, many buildings will have a party room or community room you can reserve for a private event. Larger ones will have a full kitchen and bar.
Parking: A Necessity for Many
Parking is a non-negotiable for some buyers, especially those in urban areas with limited street parking. Assess the parking situation of the condo complex, considering:
Garage vs. Outdoor Spaces
Garage parking provides security and protection from the elements, whereas outdoor spaces may offer convenience, particularly when it comes to unloading groceries or quickly accessing your vehicle.
Full-Size or Compact
Depending on your household size and vehicle type, full-sized spaces may be necessary. Always check out the parking space(s) before you write the contract. Don't be the buyer with the full size SUV that can't fit into the compact parking space.
Tandem or Side by Side
If you are buying a condo with multiple parking spaces, be aware that some buildings have tandem spaces. These are two spaces combined - one in front of the other. If they are tandem, it should be noted in the description but you want to be sure.
Building Type and Age: Condo Classifications
The type of building you choose can have a significant impact on your living experience and future salability. There are various building types of condos, each with its own benefits and considerations:
Garden Style
Typically one-level units in a 1-4 story building. Many older garden condos do not have elevators so if you are on the third floor, you get a daily workout from the stairs alone. Some examples of garden style condos are:
Cambridge Courts
Townhome
Often characterized by multileveled living, townhouse condos offer a more house-like feel while still enjoying the benefits of shared amenities and services commonly found in a condo. Townhouse style can be the typical 2 or 3 story structure you typically think of. It can also be 'piggyback' style where one unit is on the first floor (and maybe a lower level) and a second unit is located above and entered from the opposite side.
It should also be pointed out that 'townhouse' refers to the type of structure and 'condo' refers to the type of ownership. A few example of townhome condo developments are:
Arlington Village
Bedford Park (piggy back style)
Fairlington (townhome & garden)
Mid-rise
Mid-rise buildings are in the range of 5-9 floors but it doesn't mean they are small in unit count. There are newer mid-rise condos with over 400 units and some smaller ones with less than 20. A few mid-rise condos in Arlington include
Hartford
Memorial Overlook
Windsor Plaza
High-rise
High-rise buildings are those with 10 or more floors. Some of the newer high-rise buildings in Rosslyn are some of the most expensive and luxurious you will find in the area. High-rises are plentiful near many metro stops and include
Bella Vista
Continental
Turnberry Tower
Condo Fees and Financial Planning: The Long-Term View
It's easy to underestimate the impact of condo fees on your monthly cash flow. Part of the condo fee will go towards common area maintenance, exterior maintenance, outdoor maintenance, management, snow removal, public sewer, landscaping, security and more.
In addition to the monthly fees, it's essential to inquire about:
Reserve Fund and Financial Health of the Condo Association
Reserve funds are critical for the long-term maintenance and health of the building. A healthy financial statement indicates the associations's ability to handle unforeseen repairs and upgrades, potentially saving you from future special assessments.
Special Assessments and Future Expenses
If a condo association doesn't have sufficient reserves when an unexpected, big-ticket expense comes along, the association might be forced to issue a special assessment. The assessment could be a few hundred dollars per owner to thousands of dollars per owner. It is always good practice to examine the condo documents, especially the financial reports and budget. Significant repairs or enhancements can lead to sudden spikes in fees or levies.
Rules and Regulations: Understanding Your Living Arrangement
Condos come with a set of rules and regulations set by the condo board to maintain the property's value and the harmony of its occupants. The condo rules can affect your daily life and the long-term prospects of your investment. Take note of:
Pet Policies
Are pets allowed, and if so, what are the restrictions? Be mindful of breeds, sizes, and the number of pets permitted.
Rental Restrictions
If you plan to rent out your unit some time in the future, are there any limitations? Understanding rental rules is crucial, particularly in markets with strong rental competition. While you can't control the real estate market and the rental income it will provide, you can control condo associations you consider.
Renovation and Modification Guidelines
You basically own what is inside the 'four walls' of your unit, but most renovations still require board approval. This is usually to make sure you are not removing any load bearing walls or overloading the electrical circuits. If you are replacing the flooring, some condos will have a requirement for a particular sub-flooring to be used for sound mitigation. Know what you can and cannot modify, as well as the approval process, to avoid headaches down the line.
Resale Potential and Appreciation: Planning for the Future
Even as you're closing the deal, it's wise to consider the potential resale value of your condo. Research market trends and forecasted growth in the area. Pay attention to surrounding condo buildings and apartment buildings. Are there are low level buildings that are going to be redeveloped and take away your view?
By considering each element outlined in this post, you'll be better equipped to make a decision that not only meets your needs now but also holds promise for the future.
Your condo should not only be a comfortable dwelling but also a sound investment that adds value to your life and finances. Whether it's the panoramic view from the rooftop terrace or the serenity of a garden-level unit, each choice shapes your condo life and financial portfolio in its unique way.
As you start your condo-buying journey, make sure you're armed with knowledge, ask the right questions, and seek professional advice when needed. The more you know, the more confident you'll be in making a decision that aligns with your goals. Congrats on taking this step!
To help you sort through your needs and wants, use this free worksheet.
