As a first-time buyer for condos in Chicago you may be looking to purchase. Fortunately, Chicago has a huge inventory of condos for sale so you should be able to find exactly what you want. However, there are a few things to keep in mind when searching for that perfect unit to buy…
#1 Building Condition
Unlike single-family homes, condo units are part of a larger building. It is a smart idea to check into the condition of the building before buying a property there because, as a resident of the building, you will be partly responsible for the care, maintenance and repair of the building. And remember, even newly constructed buildings can have hidden issues. But just because a condo building isn’t in mint condition doesn’t mean you shouldn’t purchase there. Oftentimes there is a reserve of money designated for building repairs and regular upkeep. Speak with the condo association board to find out what the situation is and whether any upcoming projects are scheduled that would deplete the coffers. Also inquire about other impending building improvements that would require a special assessment (an additional cost to condo owners over the standard monthly dues paid to the condo association).
#2 Condo Association Minutes
Every condo building (no matter how few units) should have a condo association with an elected board who holds regular meetings about the state of the building, reserves and other related matters. Ask to see the condo association minutes from the past 6 – 12 months (you will probably be permitted to read them while on the premises). This is a good indicator of whether the association is on top of issues and has an active board that properly handles the building’s business affairs. The minutes should provide a good review of what’s going on with the condo and its residents, as well as an idea of any outstanding dept or liens on the property.
#3 Occupancy
You should find out about the occupancy rate of the condo building for a couple reasons. First of all, you many encounter additional obstacles when trying to secure financing if the building is less than 50% occupied. And if you do get loan approval on a condo building that is half full, what does that mean for your share of the monthly assessments? It is also good to know what percentage of units are inhabited by renters versus owners. Allowing owners to rent out their units has become a much more common practice in recent years. However, renters are generally not as concerned with property value and may not be as meticulous with upkeep of their unit and common areas. That said, it is just as likely to get owners who are delinquent on their monthly condo assessments, which can affect the communal reserves over time.
