{"id":3809,"date":"2024-03-11T10:07:39","date_gmt":"2024-03-11T14:07:39","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=3809"},"modified":"2024-06-16T23:23:05","modified_gmt":"2024-06-17T03:23:05","slug":"condo-shopping-does-my-agent-warn-me-about-hoa-red-flags","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/condo-shopping-does-my-agent-warn-me-about-hoa-red-flags\/","title":{"rendered":"Condo Shopping: Does My Agent Warn Me About HOA Red Flags?"},"content":{"rendered":"\n<figure class=\"wp-block-image aligncenter size-full is-style-rounded is-style-rounded--1\"><img loading=\"lazy\" decoding=\"async\" width=\"1430\" height=\"953\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/03\/condo-shopping-and-hoa-red-flags.jpg\" alt=\"\" class=\"wp-image-3810\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/03\/condo-shopping-and-hoa-red-flags.jpg 1430w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/03\/condo-shopping-and-hoa-red-flags-300x200.jpg 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/03\/condo-shopping-and-hoa-red-flags-1024x682.jpg 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/03\/condo-shopping-and-hoa-red-flags-768x512.jpg 768w\" sizes=\"auto, (max-width: 1430px) 100vw, 1430px\" \/><\/figure>\n\n\n\n<p>Many of today&#8217;s buyers want condos. They\u2019re compact and low-maintenance. <a href=\"https:\/\/www.deeds.com\/articles\/condos-are-cheaper-thats-not-the-only-reason-younger-generations-want-them\/\">Condos are cheaper<\/a>, typically, than standalone homes. Still, it\u2019s entirely possible to make a costly mistake by missing condo warning signs.<\/p>\n\n\n\n<p>Sometimes, a real estate agent notices things the buyer won\u2019t. A good agent becomes that extra pair of eyes, extra ears and nose&#8230;<\/p>\n\n\n\n<p>Alert real estate agents save buyers money in the long run. Know what they look for. You\u2019ll be better prepared to protect your best interests \u2014 long after the deed is yours.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Things a Real Estate Agent Notices<\/h2>\n\n\n\n<p>The buyer\u2019s agent notices pricing. Granted, there\u2019s so much online data that the typical buyer can tell if a condo property is more expensive than comparable properties. Ditto for the condo that\u2019s spent an abnormal length of time on the market. Or perhaps the condo is back up for sale after another buyer backed out. A real estate agent can discuss these things with buyers, and help determine what they actually mean.<\/p>\n\n\n\n<p>An agent will notice if either the grounds or the unit itself aren\u2019t well kept, but buyers usually notice that, too.<\/p>\n\n\n\n<p>So let\u2019s go over a few things buyers can miss, but a pro should find.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Looking inside the unit, your agent may point out things like\u2026<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Staging or photography that doesn\u2019t check out.<\/strong> Real estate agents can spot a cover-up! If sellers have oddly placed carpets, furnishings, or wall hangings, count on a buyer\u2019s agent to check the surface underneath.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Quick updates for quick sales.<\/strong> How about that spiffy wood laminate flooring throughout the place? Yes, and that new, perfectly uniform coat of paint. The seller\u2019s agent spruced it up nicely, but the systems and appliances are from the 1980s. The buyer\u2019s agent knows \u2014 and tells. Because buyers should know if they\u2019ll have to pay for major upgrades.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Repairs and maintenance in the unit done by unlicensed DIY buffs.<\/strong> Interior decorating is one thing. But what if someone has worked on plumbing, outlets, or \u2014 heaven forbid \u2014 any weight-bearing walls?<\/li>\n<\/ul>\n\n\n\n<p>The agent can ask the home inspection expert to comment on many of the above points. That\u2019ll give the buyer critical information to decide: <em>Is this condo a reasonable, safe investment?<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>When looking around the building\u2019s exterior, your agent may point out\u2026<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Engineering issues.<\/strong> These can include infrastructure breakdown, due to construction flaws or the building\u2019s age. Concerns? An agent should help the client make a contingent offer, based on an engineer\u2019s inspection and report.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Costly outdoor work to be done.<\/strong> Is there a potential for outdoor maintenance, or any issues with trees, sewers, etc. to fall on individual unit owners? The agent (or buyer) is wise to seek out the on-site maintenance chief, and learn what unexpected costs have actually fallen upon individual unit owners in recent times.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Sloping.<\/strong> A unit might be farther down the ground\u2019s natural slopes than others. If stormwater rushes into that cozy little space (without a decent drainage system to redirect it), there could be troublesome water table and even flood issues. Aware of the growing potential for flooding, an agent might recommend picking a different unit for this reason.<\/li>\n<\/ul>\n\n\n\n<p>Of course, most agents have only basic knowledge in these areas. If necessary, an agent should show the client where to find good experts.<\/p>\n\n\n\n<pre class=\"wp-block-preformatted\"><em><strong>There\u2019s more about flood risk which your agent might not know. Read: <\/strong><\/em><a href=\"https:\/\/www.deeds.com\/articles\/safe-or-sorry-the-evolving-law-of-disclosing-flood-risk-and-how-to-look-up-your-own-homes-risk-of-flooding\/\"><strong><em>Safe or Sorry? The Evolving Law of Disclosing Flood Risk (and How to Look Up Your Own Home\u2019s Risk of Flooding)<\/em><\/strong><\/a><\/pre>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>When perusing the property\u2019s documents, your agent may point out\u2026<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image alignright size-full is-style-rounded is-style-rounded--2\"><img loading=\"lazy\" decoding=\"async\" width=\"433\" height=\"649\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/03\/things-a-real-estate-agent-notices.jpg\" alt=\"\" class=\"wp-image-3811\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/03\/things-a-real-estate-agent-notices.jpg 433w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/03\/things-a-real-estate-agent-notices-200x300.jpg 200w\" sizes=\"auto, (max-width: 433px) 100vw, 433px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Errors in the listing.<\/strong> If the listing doesn\u2019t match the <a href=\"https:\/\/www.deeds.com\/articles\/real-estate-legal-descriptions-for-deeds\/\">legal description<\/a> and the property itself, the agent should notice. A well-prepared agent comes in with measuring tape. All the better to check the unit\u2019s actual dimensions against the seller\u2019s writeup. &nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Unexpected costs.<\/strong> What are the monthly HOA fees? What about <a href=\"https:\/\/www.deeds.com\/articles\/condos-and-special-assessments\/\">special assessments<\/a>? While we\u2019re at it, condo boards should make sure the property as a whole is sufficiently insured, averting surprise expenses for individual unit owners. An agent can guide a buyer to check on this. (Condo unit owners\u2019 insurance only covers what\u2019s within the unit\u2019s walls.)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dealbreaker rules.<\/strong> Condo unit buyers are entering into agreements with homeowners\u2019 associations (HOAs) that manage the properties. A buyer should check for <a href=\"https:\/\/www.deeds.com\/articles\/deed-restrictions-how-they-impact-homeowners-and-communities\/\">deed restrictions<\/a>. Review the Covenants, Conditions, and Restrictions (CC&amp;Rs) <em>before<\/em> buying. Otherwise, there can be conflict, fines, and even liens (for unpaid fees) in the buyer\u2019s future. Who needs to buy into that?<\/li>\n<\/ul>\n\n\n\n<p>An agent will tell you the pros you want to hear, and the cons you don\u2019t. For example, a property with low monthly HOA fees looks appealing upfront, but the association must support the property\u2019s needs. The association shouldn\u2019t skimp on maintenance just to keep unit owners from complaining.<\/p>\n\n\n\n<p>How can you detect such skimping? Ask the property office for a copy of the budget and master insurance policy. Your agent or mortgage consultant can help you check for an appropriate stash of reserve funds. Otherwise, look out for \u201cspecial assessments\u201d in the future. Most buyers would agree that paying several hundred dollars a month to the association makes sense, to avert large but preventable expenses later.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Your Agent Will Inform You<\/h2>\n\n\n\n<p>Hiring an agent means having someone who represents your best interest when you buy the unit \u2014 someone who has fiduciary duties.<\/p>\n\n\n\n<p>This raises the question of how agents differ from transaction brokers. Briefly: A broker typically prepares the paperwork, relays offers, and keeps everything moving. An agent does all that, while focusing on one specific client they\u2019re representing to the best of their professional ability.&nbsp;<\/p>\n\n\n\n<pre class=\"wp-block-preformatted\"><em><strong>Check out some facts about <\/strong><\/em><a href=\"https:\/\/www.deeds.com\/articles\/your-real-estate-agents-fiduciary-duties\/\"><strong><em>your real estate agent\u2019s fiduciary duties<\/em><\/strong><\/a><em><strong>, on Deeds.com.<\/strong><\/em><\/pre>\n\n\n\n<p>Your agent, as opposed to a broker, is working <em>for you<\/em>. An agent may not rush to close a deal without filling you in on things you\u2019d want to know about your investment. That\u2019s why your real estate agent clues you in if they detect signs of past flooding or current moisture issues, for example, or sinkholes in the parking area.<\/p>\n\n\n\n<p>So, be sure your broker is also your agent. Check your contract.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Takeaway: Experienced Agents Help Clients Avert Mistakes<\/h2>\n\n\n\n<p>Condos are hot today, given their relative affordability. Unit buyers can enjoy living in a low-maintenance setting, building equity along the way. Yet condos can come with their own costly issues\u2014especially if the property isn\u2019t run right.<\/p>\n\n\n\n<p>Possibly the best way to avert unnecessary surprises is to hire an agent who (a) has experience; (b) understands condos; and (c) won\u2019t hesitate to look under those rugs.<\/p>\n\n\n\n<p><strong><em>Note:<\/em><\/strong> This article is for general information only. It is not legal or financial advice. Buyers who hire real estate agents must speak directly with the agents about their professional abilities, duties, services, and generally what to expect from a specific agent-client relationship.<\/p>\n\n\n\n<p><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>BuzzFeed<\/em> via <em>Yahoo.com<\/em>: <a href=\"https:\/\/www.yahoo.com\/lifestyle\/real-estate-agents-revealing-subtle-121603444.html\" target=\"_blank\" rel=\"noreferrer noopener\">Real Estate Agents Are Revealing the Subtle Red Flags to Look Out for When Buying a House<\/a> (Jan. 24, 2024).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Association Reserves<sup>TM<\/sup>: <a href=\"https:\/\/resstudy.wpengine.com\/our-services\/\" target=\"_blank\" rel=\"noreferrer noopener\">Reserve Study Services<\/a>.<\/p>\n\n\n\n<p class=\"has-small-font-size\">American Financing, via <em>AmericanFinancing.net<\/em>: <a href=\"https:\/\/www.americanfinancing.net\/home-purchase\/red-flags-when-buying-a-condo\" target=\"_blank\" rel=\"noreferrer noopener\">Home Purchase \u2013 Red Flags When Buying a Condo<\/a>.<\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>Deeds.com<\/em>: <a href=\"https:\/\/www.deeds.com\/articles\/what-does-a-condo-deed-give-you-can-you-be-forced-to-sell\/\">What Does a Condo Deed Give You? Can You Be Forced to Sell<\/a>? (Mar. 27, 2023).<\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>Deeds.com<\/em>: <a href=\"https:\/\/www.deeds.com\/articles\/condos-and-special-assessments\/\">Condos and Special Assessments<\/a> (Jun. 24, 2022).<\/p>\n\n\n\n<p class=\"has-small-font-size\">And as linked.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-small-font-size\"><strong>More on topics: <\/strong><a href=\"https:\/\/www.deeds.com\/articles\/what-makes-a-good-real-estate-agent-and-how-do-i-find-one\/\">Finding a real estate agent<\/a><strong>, <\/strong><a href=\"https:\/\/www.deeds.com\/articles\/the-post-mls-market-is-being-your-own-agent-the-future-of-real-estate\/\">Be my own real estate agent<\/a><\/h3>\n\n\n\n<p class=\"has-small-font-size\">Photo credits: <a href=\"https:\/\/www.pexels.com\/photo\/a-person-holding-a-brass-faucet-tube-8292774\/\" target=\"_blank\" rel=\"noreferrer noopener\">RDNE Stock Project<\/a> and <a href=\"https:\/\/www.pexels.com\/photo\/two-black-wooden-bar-stools-533157\/\" target=\"_blank\" rel=\"noreferrer noopener\">Pixabay,<\/a> via Pexels\/Canva.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many of today&#8217;s buyers want condos. They\u2019re compact and low-maintenance. Condos are cheaper, typically, than standalone homes. Still, it\u2019s entirely possible to make a costly mistake by missing condo warning signs. Sometimes, a real estate agent notices things the buyer won\u2019t. A good agent becomes that extra pair of eyes, extra ears and nose&#8230; Alert [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3810,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[183,182],"tags":[1053,1106,1112,1105,1110,1107,1111,1108,556,408],"class_list":["post-3809","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-condo","category-hoa","tag-buyers-guide","tag-condo-buying","tag-condo-maintenance","tag-condo-shopping","tag-hoa-fees","tag-hoa-red-flags","tag-home-inspection","tag-investment-protection","tag-property-investment","tag-real-estate-agents"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Condo Shopping: Does My Agent Warn Me About HOA Red Flags? - Deeds.com<\/title>\n<meta name=\"description\" content=\"Discover crucial HOA red flags in condo shopping with our expert guide. 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