What Every First-Time Condo Buyer Should Know

A Practical Guide Before You Buy Your First Condo

Buying your first condo can be an exciting step toward homeownership — with the benefit of lower maintenance and often more affordable pricing compared to single-family homes. But before you sign the contract, it’s important to understand what sets condo ownership apart and what to look out for.

Here’s what every first-time condo buyer should know.

1. Understand What You’re Actually Buying

When you buy a condo, you're purchasing:

• The interior space of your individual unit (sometimes called the "air space")

• A shared interest in common areas such as hallways, lobbies, landscaping, pools, gyms, or parking garages

• A membership in the condo association or HOA (Homeowners Association), which governs the community

You do not own the land beneath your unit, and most exterior maintenance is handled collectively.

2. Review the HOA Rules and Financials Carefully

Every condo is part of a homeowners association, which comes with monthly fees and its own set of rules. Before you buy, review:

• Monthly HOA fees — what they cover (e.g. water, insurance, amenities)

• Rules and restrictions — such as pet limits, rental policies, or renovation guidelines

• Reserves and financial health — Does the HOA have savings for major repairs? Are there upcoming special assessments?

A poorly managed HOA or underfunded reserve account can lead to costly surprises down the road.

3. Ask About Special Assessments

A special assessment is a one-time fee charged to all unit owners to cover a major repair or upgrade not included in the regular budget (like a new roof, elevator replacement, or plumbing system overhaul).

Ask:

• Are there any upcoming assessments?

• Has the building undergone major repairs recently?

• How often has the HOA issued assessments in the past?

This helps you avoid unexpected costs shortly after moving in.

4. Know the Difference Between Condo Insurance and Homeowner’s Insurance

In most cases:

• The HOA's master insurance policy covers the building structure and shared areas

• You, the buyer, are responsible for an HO-6 policy to cover everything inside your unit — including walls, floors, appliances, and personal belongings

Make sure your insurance covers what the HOA’s master policy does not.

5. Understand the Lifestyle

Condo living comes with pros and cons. Be honest about whether it fits your lifestyle:

Pros:

• Less maintenance

• Amenities like pools, gyms, and security

• Urban locations with walkability

Cons:

• Close proximity to neighbors

• Limited outdoor space

• HOA rules and less control over property decisions

If you value privacy or a yard, a condo may not be the right fit — but if you’re looking for convenience, it could be ideal.

6. Work with an Agent Who Knows Condos

Condo transactions have more moving parts than typical home purchases. A knowledgeable real estate agent can help you:

• Evaluate the HOA documents

• Compare unit layouts and amenities

• Understand financing requirements (some lenders treat condo loans differently)

• Navigate resale restrictions or rental caps

Their insight can save you from costly mistakes.

Final Thoughts

Buying your first condo is a major step, and while the process differs from buying a house, it can be just as rewarding — with the added bonus of convenience and lifestyle.

By doing your research, reviewing the HOA documents carefully, and working with a trusted agent, you can confidently decide whether a condo is the right move for you.