You have your financial house in order and are ready to consider buying a home but don’t know whether to search for a single-family house or condo. There are many factors to consider when choosing one over the other – starting with location.
Many people look for homes that are within close proximity of their office, a good school system and possibly other destinations ranging from parks, public transit, houses of worship or the conveniences of shopping. While only the buyer can decide where to select a home based on certain everyday needs, there are other aspects to consider.
There are many good reasons to choose a house, location aside, and we will cover those aspects in a separate blog post. For the sake of this discussion we are going to focus on the positives – and negatives – of owning a condo.
Nationwide, there are more than 344,000 community associations, which includes homeowners associations (HOAs), condo associations and co-ops. Almost one in every four Americans belong to one, according to the Community Associations Institute. That’s 70 million residents in about 26.6 million homes. So, this group is hardly a minority, particularly in urban areas of the U.S.
While association members can become agitated by rules that police residents, an industry survey shows that as many as 85% of residents are neutral or positive about their association. There is a lot to like when living in a condo community. Here’s a sample:
- Little or no maintenance worries. When you buy a condo, you will have far less maintenance to do compared with a single-family home. With a house, owners are responsible for maintaining the grounds, checking on major appliances, as well as examining the roof, windows and doors for leaks or drafts, and ensuring the home is safe and secure from intruders. That’s a lot! But condo owners can be assured common items – roof, security, landscaping, hallways, elevators, fitness center – are covered by monthly HOA dues. Owners are typically responsible for everything inside the home – painting, appliances, floors. And in select buildings, on-site maintenance staff will help with routine items (broken door handles, backed-up sinks, burned-out light bulbs). Think of the time savings when you live in a condo and can simply call your “super” (superintendent) to address a leaky faucet (with minimal or no cost).
- Lower price points. In Seattle, condo inventories are generally on the rise as new construction projects come on the market, delivering hundreds of new homes a year. The theory is, with more selection (including a rise in new apartment units) competitive forces will push prices lower. In any market, a typical two-bedroom condo will cost less than a two-bed, single-family house. (For the past 12 months ending in May 2019, the median price for a two-bedroom condo home in Seattle was about $575,000 vs. $613,000 for a two-bed detached house, according to the Northwest MLS.) The exception: luxury high-rise condos are priced higher per square foot (sometimes $1,000+) than most other properties because of the high-end features and hotel-like services. (The median 12-month running price of a condo – any size – in downtown Seattle is about $660,000, as of May 2019.)
- Walkable locations. If you want to be close to the action – theater, restaurants, spa, core retail district – then living in a condo is practically your only option. (You can probably count on your two hands the total number of detached houses in downtown and Belltown). And the number of units available in the area is on the rise as new buildings pop out of the ground and into the clouds. You won’t find townhomes or traditional houses until you get to Capitol Hill, First Hill, Eastlake or Queen Anne.
- Amenities. Feeling the competition from apartment and condominiums, many new projects are going to new heights – sometimes literally – to offer attractive amenities. First Light, on the Belltown/downtown boundary at 3rd Avenue and Virginia Street, is building the first rooftop infinity pool for a residential tower in the U.S. (and only the second in the world). SPIRE is constructing a fitness center atop its 41-story triangular pillar on Denny Way and Wall Street, not to mention America’s first below-ground, auto-valet parking system. Some luxury condos offer on-site spas and room service.
- Security. Most condos in the Seattle core offer 24/7 concierge and package-storing service. There is peace of mind just having a familiar face on duty around the clock available to help with laundry pickup/delivery, holding your packages until you have time to retrieve them and vetting your food deliveries. They also monitor the building perimeter, garage and common area for unsavory non-residents who may be on the prowl. (It’s not an easy job!)
With the good comes the not-so-good. There can be areas of concern when thinking of buying (or renting) a condo home. They include:
- Adjoined units. Unlike a detached house, condo owners typically share common walls with neighbors, not to mention residents possibly living above and below. Condos may be built to better standards these days – and usually better than apartments – but having just one noisy neighbor on a regular basis can spoil your quality of life. There is no telling who your neighbors will be – renters, owners or even short-term (Airbnb) visitors. Living different hours of the day than your neighbors is arguably the worst scenario. Think of the nurse who gets up at 4am each workday while the neighbors enjoy an occasional late-night party next door. You get the picture!
- Association dues. Buying a condo in Seattle/King County (or anywhere) comes with monthly dues to cover the costs of running the building. This adds up to thousands of dollars a year – like paying an extra car payment every month. That’s the tradeoff for not having to take care of landscaping, painting walls or replacing carpets in common areas and maintaining the elevators and other items. Let’s just call it an added cost for the benefits of living in a condo.
- CC&Rs. Condo owners are typically governed by a series of covenants, conditions and restrictions (CC&Rs) that are overseen by an HOA. It’s important to read the rules well before you purchase a condo home (or even rent one) because you will be responsible for upholding those policies or face possible fines. The good news: Your neighbors will face the same restrictions on noise and curfews.
- Assessments. With age to a condo building or community comes maintenance, upgrades and replacement of common items. When it’s time to purchase a new elevator (gasp!) or replace the roof (gulp!), then homeowners are usually asked to pay a special assessment to cover the cost and keep the HOA’s finances in good health. Again, review the CC&Rs and details from the condo’s resale certificate – especially notes from monthly HOA meetings – before buying to understand your obligations when it comes to covering one-time costs.
- Litigation. From time to time, an HOA must take legal action against a homeowner, building developer or other third-party entity to recoup money for failure of dues payment, lack of services or to cover costs related to defects caused by contractors. Most HOAs don’t have a bundle of cash sitting around to pay legal bills. This is another type of special assessment – but there is nothing special about it – and it is an example of how homeowners could be saddled with unexpected costs.
As you can see – five benefits and five detriments – there are many good and not-so-good reasons to live in a shared community. It’s truly a matter of lifestyle and location. If you, like me, enjoy the city life – walking to Cinerama to catch the latest box office film – or to take a bus or walk to watch the Mariners play nine innings, then you’re left with few choices. City life = condo life.
If you need more space and want the flexibility of entertaining large groups of people in a back yard, then the suburban life may be best suited for you. Hey, you can always avoid the house yard work by hiring a landscaper!