10 Biggest Red Flags When Buying A Condo

The definition of a red flag is a sign of danger, problems, or irregularities. In the world of real estate, red flags can signal problems with the property’s construction and irregularities in property management and maintenance. It can even spell danger, such as buying property in an unsavory neighborhood. 

 

Research into US homeowners who have regrets about buying their homes showed a staggering 19% rushed the decision or process. And that means many people are buying their homes before noticing any of these potential red flags. 

 

Don’t become a homeowner with regrets. Here are the 10 biggest red flags when buying a condo.

1. Inadequate Maintenance

One of the biggest red flags when buying a condo is evidence of inadequate maintenance. This can be no maintenance at all or not enough maintenance. And it’s pretty easy to spot the symptoms when you know what to look out for.

 

Watch out for cracks and damp/mold spots in the walls, ceilings, or floors of the condo itself, the common areas, and the complex in general. Worn steps, damaged railings, multiple broken windows, and holes in perimeter fencing are signs of poor maintenance, as are exposed electrical wires or leaking plumbing.

 

These can indicate not only inadequate maintenance but also all-out neglect. And they are often the precursor to even worse problems. Crumbling walls, for example, can lead to structural failure and may offer increased points of entry for property crime.  

2. Poor Construction And Design

Signs of poor construction and design are also major red flags when buying a condo. The above symptoms of poor maintenance and neglect can point to inherent flaws in the building’s construction. But there are a few other potential indicators of poor construction and design in the building. 

 

These signs include uneven surfaces, drafty windows, misaligned building components, and leaning walls. If you notice any of these red flags, especially the last two, don’t proceed any further! The building will be at much higher risk of damage or even collapse in severe weather or seismic events. 

 

Although such problems are fortunately rare, they sometimes happen. Architects might overlook design flaws. Construction companies may use weaker building materials. Engineers might overlook structural issues. Don’t risk your safety by buying a condo with even the slightest hint of poor construction. 

3. High HOA Fees

Are the HOA fees you’ll be required to pay, higher than the norm? Are the fees not in line with the average HOA fees for a building of its size and the amenities it offers? This may be a red flag pointing to HOA fund mismanagement.

 

Condo fees, commonly referred to as HOA (Home Owners Association) fees, are the monthly dues paid by all the homeowners in the condominium complex. These fees represent your share of the costs to maintain the building’s common areas and cleaning/maintenance services.

 

Research other condo buildings in the area with similar amenities. What are they paying, on average, for the upkeep of the facilities? If your findings suggest that the fees asked for at your complex are too high, something is amiss. It means that you probably won’t get the promised value that you are paying for.

4. Residents Not Paying HOA Fees

One of the slightly more subtle red flags when buying a condo is seeing a notice that residents are not paying their HOA fees. 

 

Did you see a notice up on a wall in the building reminding condo owners to pay their overdue HOA fees? While it is easy to misinterpret a friendly reminder, it is just as easy to overlook a sign that condo owners are falling behind with payments. 

 

You should be able to assess the truth of the situation from the wording of the notice. This red flag can mean that the funds needed for ongoing building maintenance simply aren’t available.

 

You can also find an HOA Board Member and ask them about the financial situation of the complex. You should also be allowed to access the building’s financial records to assess the status of HOA fee payments.

5. Bad Parking Arrangement

A bad parking arrangement is one of those red flags when buying a condo that you should never ignore. This is something that you will have to live with daily, after all, and it may cause a lot of unexpected stress in the long term. 

 

The truth is, there are both pros and cons to consider when deciding on buying a condo vs buying a house. And one of the biggest cons is that condos come with rules and restrictions. This can range from how much noise you can make, to whether or not you can own a pet, and where you can park your car. 

 

It is the last one listed there that can cause a lot of unhappiness. A bad parking arrangement can mean serious inconvenience at best, and a higher risk of damage to your vehicle at worst. It’s simply not worth the risk to your peace of mind or your vehicle. 

6. No Outdoor Space

Does the condo you intend to buy have no or very limited outdoor spaces? This might not seem like a red flag at first, but it can be a subtle symptom of an underlying problem. Outdoor spaces contribute to natural light and ventilation, recreation, and social interaction. They also increase the value of the property. 

 

Most importantly, they offer residents more room to move freely. If you or other homeowners in the complex have children or pets, this lack of outdoor space will be even more keenly felt. It can lead to overcrowding of indoor common areas, with an accompanying rise in noise levels and disturbances. 

7. Your Agent Isn't A Condo Specialist

Although by itself this is not always considered one of the red flags when buying a condo, it can create problems nonetheless. One of the most common first-time home buyer mistakes is to pick the first real estate agent you find. 

 

Unfortunately, this can mean that you end up with an agent who lacks the experience and expertise you need. If they are not a condo specialist, they might not even be able to identify some of these condo red flags themselves!

 

You wouldn’t ask someone who doesn’t know about cars, for help with selecting a vehicle, would you? Or someone who knows nothing about plants, to help you with gardening and landscaping. No, you would ask the experts. So, do the same with your search for the perfect condo. Get help from a condo expert.

8. High Vacancy Rates

Does the condo building have very high vacancy rates or much higher vacancy rates than the average for the area? This is one of the more obvious red flags when buying a condo, and it can mean a variety of things. 

 

It could mean that the HOA fees are unaffordable, and homeowners were unable or unwilling to keep up with the payments. Or perhaps the property is poorly managed, and the residents experienced constant problems with failing infrastructure and unkempt common areas. 

 

But it could also be a sign of something much more troubling — a high-crime neighborhood that has forced homeowners to flee. Whatever the reason, something is causing homeowners to rethink their choice of living in the complex. Take this as your cue to look elsewhere for your new home, too.

9. Ineffectual Property Management

The next red flag to look for is ineffectual property management of the complex. This is a crucial aspect of your search for the perfect condo. Poor property management can turn what at first seemed like a dream home into a nightmare. 

 

Why is this a red flag when buying a condo? It’s simple. Poor property management can lead to issues like ineffective resident screening, improper cleaning and/or a lack of property management, and more. In the worst-case scenario, it can render a property unlivable.

 

When searching for a condo, do your research into who is managing the property. Do they have a good reputation? Are they transparent about their methods? Without proper management, a condominium complex will inevitably fall into disrepair and attract the wrong sort of residents.

10. Lack Of Amenities

Many condominium complexes offer shared amenities like gyms, gardens, pools, spa areas, and other recreation areas. Is there a serious shortage of amenities in the vicinity? This is one of those red flags when buying a condo that too many people ignore. Yet it can have a huge impact on your quality of life. 

 

These amenities are intended for all in the building to use, allowing residents more options for recreation and convenience without traveling far from home. They also add value, indirectly, to the condo you purchase. A lack of amenities may be a stumbling block when you try to resell your condo in the future. 

 

Take note, too, of the condition of any available amenities. Any sign of poor maintenance here is also a big red flag. So much so, that we include it in our Condo Home Inspection Checklist. Be sure to read through that checklist for even more targeted advice about buying a condo. 

The Bottom Line

The bottom line is this — don’t ignore these red flags when buying a condo. Problems like poor management and an ineffective HOA are difficult to overcome. Indeed, other red flags like limited amenities, a lack of outdoor spaces, poor construction, and design flaws are nearly impossible to solve.

 

That is why it is crucial to have professional help from the start when looking for the perfect condo to call home. At Hudson Condos, you’ll have access to expert assistance and an extensive database of properties where you can search based on criteria that matter to you. 

 

Contact us today for help with finding your dream home.