Condos

Condos and other alternatives to traditional single family homes is a booming market in Columbus and Central Ohio, and represents the largest change in the market place during the last several years. There are now a huge variety of alternatives to typical single family homes. A majority of home-owners don't have children in their home so it's not surprising that this has opened up a wide range of choices.

What are condos?

Condominiums are basically a form of legal ownership. In a traditional single family home you own the land and the entire house that sits on it and you don't share that ownership with anyone. But in a condominium you basically own everything from the inside of your walls. Ownership of the roof, exterior walls, parking areas and other common areas are shared with the other condominium owners. The term condominium has come to represent an alternative form of ownership to single family homes. It conjures up the image of multi family homes that one owns instead of rents. But in today's market it isn't just owning an apartment. Condominiums cover a wide range of markets and styles and can range in price from $80,000 to over $1,000,000.

Different types of developments

First time buyers: These are developments geared towards younger first time home buyers. Some of the larger developments in town fit this description. The units themselves will be more like a large apartment that you own, instead of rent. It's a good opportunity to have the benefits of homeownership. They often are selling a lifestyle as well as housing, with pools, fitness facilities and social events in a club house.
Entry level developments: In some areas of town single family homes are too pricey for entry level buyers. Condominium developments in these markets allows a buyer to gain a foothold in the community. The buyers are willing to compromise size and yards in exchange for location and quality.
Urban buyers: This market is experiencing the most dynamic growth of any of the markets. These developments are attracting a large mix of buyers who are attracted to the amenities of urban living and the architecture that one finds in these developments. They cut through a variety of price points but mid to upper priced are most typical, which reflects the housing stock of the neighborhoods they are in.
Mid price suburban developments: In this market developers and builders specialize in building a value priced condo. Often a developer will build the same product in different areas of town. They will emphasize size over higher end finishes but they will have a few bells and whistles, such as vaulted ceilings and master baths. More attention is usually paid to the master suite.
The move down market: These are geared toward buyers who are moving out of larger homes and are looking for something that emphasizes quality and higher end finishes. These buyers don't have the needs of large 4+ bedroom homes with large lots but are used to higher end quality. These can range in price from mid to expensive. There are large developments that are value priced and geared to the move down buyer from mid priced single family homes. There are smaller more boutique developments that can be very expensive for the higher end move down buyer.
Alternative housing: There is a large range of options that fit into this market, but most tend to be mid to upper priced. These will be patio homes, 0 lot line or even higher end homes on very small lots with common area maintenance for landscaping. These are geared towards buyers looking for more of the single family feel without the size and yard of comparable homes in the area. They want something maintenance free but with more space between neighbors.

Management Issues

When buying a condo you have to be aware of the management issues. There will be a legal document that spells out the details but typically the homeowners have voting rights and can elect officers of the condominium association. The association in turn hires a management company to handle the day to day issues, such as repairs, collection of monthly dues, payment of bills, maintenance of common areas, etc. A well managed condominium will be an important factor in it's ability to maintain it's value. As a condominium owner you can be more involved in the associations business by running for office or at least making your voice heard at association meetings.

There will be legal restrictions in place that limit what can be done to the outside of your condominium. These rules will be spelled out in the condominium docs and can be adjusted by a vote of condominium owners. In a well run association these rules are generally a good thing and help maintain the value of the condominium. They also provide a mechanism to deal with issues that can arise when having joint ownership. They can deal with issues like:

The color or type of window coverings that are allowed.
Parking issues.
Use of common areas.
Landscaping and what individual owners are allowed to do and not allowed to do.
Outdoor decorations and furniture

Monthly Fees

Owners of condominium units are obligated to pay monthly fees to the association. This is a legal obligation and if not paid they have the right to file a lien on your property. The monthly fee typically covers things such as:

Management fee.
Insurance of the building and liability insurance.
Snow removal
Landscaping of common areas
A replacement and reserve fund
Utility expenses for common areas
If there is a pool or club house, any expenses associated with those areas
Trash removal
Depending on the type of building some utilities are included
Security and doorman services

The fee should be commensurate with the services provided. One of the more important items is the reserve fund. From the day the condominium opens they should be collecting money and accumulating funds for future repair issues, like the replacement of the roof, parking lot maintenance, exterior painting, etc.

Re-sale of a condominium

It used to be thought that condominiums didn't have the same appreciation potential of single family homes. With the increased demand for condos this doesn't hold true in today's market. The issues that effect re-sale potential are:

Location: How well located is your unit and does the development have any location advantages?
Management: If the association isn't well run then it will begin to show and have an adverse impact on the value of the condominium.
Design features: Are there design features that make them unique compared to other choices on the market.
How do they compare to single family homes in the market?: If you can spend a little more money and buy a comparable single family home then the value of the condo may be difficult to sustain. If the jump to single family homes is a large one then that will help sustain the value of the condo.

Cheshire Woods