Role of the HOA in the purchase of your Downtown San Diego Condo

July 6th, 2015

“When buying a Downtown San Diego condo, we are all seduced by the decor, the ambiance, the view, and other visual effects, when we should really be checking something else that is not visual!

The Home Owners Association (HOA) often plays a very nondescript part in the whole process of choosing a condo – especially for first-time condo buyers. However, the HOA can play a very large part in using up your finances if you hit an unlucky situation after moving in.

In order to avoid a surprise, ask a few pertinent questions about the HOA. One of the important factors would be ‘who is running the show?’ In a very small condo complex it may be run by residents, but a professional management company is preferable, especially in a condo of any size.

Professional management companies do charge for their services, but they can often save this fee by obtaining lower quotes for repairs, because they will use the same company many times. There is also less chance of the company using their influence on resident votes, so they may be construed as more fair. Finally, it is a business to them, and it the HOA will be run as such, instead of as a part-time rush before each meeting is due!

Always ask to see the rules of the HOA, the financial report, the by-laws and the minutes of the last several meetings. The conditions, covenants and restrictions (CC&Rs) will affect your lifestyle, so make sure they ‘fit in’ with it.

The financial report will tell you if there are any big increases in the fees coming up, or if there are any ’emergency’ fees due soon. This raises the important question, what will happen if there is a big emergency? How is it paid and how much money is in the HOA kitty?

The maintenance reserves will be important; there will hopefully be approximately one third of the gross annual fees charged to all residents in the reserves.

Another aspect that the HOA manages is the percentage of rental units allowable. Under 20% is passable, but any more and the re-sale of the condos becomes risky. Renters often do not have the same respect for property or neighbors, so they decrease desireability.Also mortgage companies are aware of this and are reluctant to give out mortgages to high-rental complexes.

Once you have ironed out all these questions, you can consider whether you would like to get a professional inspection done. These inspections include the common areas as well as the condo you are interested in. Once all these precautions are in place, you will feel more secure to go ahead and make an offer.

The Latest Headlines

Downtown San Diego November 2013 Events

San Diego Brewers Guild Festival Nov. 1-2 The San Diego Brewers Guild Festival is the OFFICIAL kickoff event for San Diego Beer Week (Nov. 1-10)! Come out to the beautiful Port Pavilion......

read more

Smart Corner San Diego Market Updates

Smart Corner – Market Updates Smart Corner is a mixed-use condominium and retail project located at Park Boulevard and C Street, in the Core District of Downtown San Diego. Completed in 2007,......

read more

Horizons San Diego Market Updates

Horizons – Market Updates This downtown San Diego luxury condo is located in the beautiful Marina District, and has a wonderful family atmosphere. The Horizons East tower is packed with amenities that......

read more

Adding a Room to Your Condo

Are you looking to make some renovations to your condo? Perhaps you have a large open area that allows for an extra room in your condo. Whether it’s a loft-style bedroom, walk-in......

read more

350 West Ash San Diego Market Updates

350 West Ash – Market Updates 350 West Ash, located in the village of Little Italy, is a 12-story, 76-unit community which was converted to residential lofts from an architecturally interesting commercial......

read more

Downtown San Diego Home Selling Tips and Terms

Effective home selling in Downtown San Diego requires real estate know how. Here are some key terms that you should know: A 1031 Exchange is a tax aspect of the Internal Revenue......

read more

5 Reasons to Hire a Real Estate Agent

Looking for a new home can be an extremely stressful process, especially if this is your first time purchasing a home and you lack the guidance of a licensed and skilled real......

read more

How to Know if You’re Getting a Good Price On Your Condo

The idea of purchasing a condo can be both exciting and overwhelming. It’s an opportunity to own a home, one that often comes with amenities and community benefits. At the same time,......

read more

Condos vs Townhouses: What Are the Differences?

There is no easy answer when it comes to deciding between a townhouse or a condo for your living situation. Both options have their own unique pros and cons, which can make......

read more

Marina Park San Diego Market Updates

Marina Park – Market Updates A welcoming private patio offers pleasant evenings and lazy afternoons right out the door from the stately living room. The Marina Park Downtown San Diego condos even......

read more

Get Listings and Articles Delivered Straight to your inbox

  • This field is for validation purposes and should be left unchanged.