Buyers : Are condominiums risky to buy?

Are condominiums risky to buy?

According to some experts, condos do not realize the same kind of appreciation value as single-family homes, but most do not lose value. In urban markets with high prices and more single family home buyers such as the Bay Area, the market for condos is strong.

As with any home purchase, you should investigate the neighborhood or development before you buy. In the case of condominiums, it is important to read the past six months of homeowners association minutes to see how effective the board is and to learn about any possibly detracting issues (such as protracted litigation with the developer).

The condominium community has worked hard in the last few years to overcome image problems brought on by disputes and lawsuits. Associations are becoming more sophisticated about property management and taking steps to prevent legal problems and disputes.