What is a Condo?
A condominium, also known as a condo, is a home owned by the occupant in a complex containing multiple living units. These units may be in one or more buildings. Here are the characteristics of a condo:
- The condo owner owns exclusively the inside of the unit, from the walls inward—also called the airspace.
- The owner shares communal property, including the building structure, walkways, stairwells, and outside spaces.
- Unlike ownership in a planned unit development (PUD, often called a townhouse), the owner of a condo does not hold exclusive title to the land on which the condo sits. This ownership is shared by all the condo owners.
- Condo owners pay monthly fees to the homeowners’ association (HOA) to cover the day-to-day and long-term maintenance of the entire condo complex, hazard insurance on the building, and landscaping.
- Condos are usually attached to other condos.
Condominium ownership is a good way to get into the real estate market in a high-priced area like Marin County. Generally, condos are less costly than single family homes and can offer attractive conveniences. In 2023, condos sold for about 40% of the price of single-family homes. Qualifying for financing is much the same as getting a mortgage for a single-family home. Condo owners give up some autonomy but benefit from an increase in amenities and a decrease in maintenance responsibilities.
Special Aspects of Condo Ownership
Living in a condo association has special aspects that you should consider before buying:
Pros and Cons of Owning a Condo
Condo complexes are found throughout Marin County and vary in size and amenities. On the higher end, you’ll find amenities like tennis courts, pools, clubhouses and gyms, elevators, and garages. Some newer condos look and feel like single family homes, while older complexes may be like apartment buildings.
If you’re considering buying a condominium, here are some things to think about:
Pros
- No maintenance responsibilities – often a management company supervised by a board of elected homeowners takes care of the buildings, grounds, and other common areas, so you won’t be fixing the roof or mowing the lawn.
- Amenities and common areas – condos come in all shapes and sizes. Some may offer one or more amenities, like a pool, indoor garage, and tennis courts.
- Personalization – unlike apartment renters, condo owners can decorate and make cosmetic changes to their unit.
- Social Life – Proximity to neighbors and access to shared areas mean there will be greater opportunities to meet new people.
Cons
- Sharing common areas – these areas are not private and must be shared with other owners.
- Special assessments – These fees may be levied by the HOA for a major common area repair, replacement, new construction, or a one-time, unanticipated expense that can’t be covered by regular monthly dues, for example, to repair or upgrade a clubhouse damaged by a storm. Under California law, no matter how expensive a repair may be, the HOA cannot levy a special assessment that exceeds 5% of the year’s gross fiscal budget (spread across all residents).
- Condo associations can choose to fund expenses through monthly fees, special assessments or both. By law they must also plan for expenses for many years ahead. They can also choose to use only special assessments when there is a need to finance specific projects.
- Less Privacy – shared walls and building access means that neighbors might be able to hear your conversations and see when you come and go.
- HOA monthly fees can be high. The board of directors sets the fees but cannot increase them more than 20% per year without a vote of all the homeowners. Unless there are financial issues, increases are more likely 2-3% or less per year. Be sure you consider these fees and factor them into your monthly expenses.
- When you buy a condo, you become an equal member of a community. You will have guidelines and regulations for living together harmoniously.
- Condos are smaller than single family homes. The average size of a condo is 1,262 sq. ft, a single-family home 2,305 sq. ft.
What to Consider Before you buy a condo
- Be wary of purchasing a unit in an established condominium complex that has many properties for sale – there may be a high level of dissatisfaction with the building and living conditions.
- Try to meet other owners to see if they are cooperative and like living there.
- Make sure the condo is constructed to minimize noise transmission.
- Determine whether there are any outstanding maintenance issues that are likely to be expensive.
- Find out if you are buying a condo or a townhouse. Sometimes they look alike. Even real estate agents mix up condos and townhouses and list them incorrectly in the Multiple Listing Service. The difference may affect what you get for your monthly HOA fee.
- Find out what the HOA pays for out of your monthly fee. This can differ significantly from one HOA to another.
Contact Madeline to answer your questions.
Condos for Sale in Marin
Here are the condos currently for sale in different areas of Marin: