Feature Story: Association Living - More Than A Trend
Considering an association maintained home
During the past four years, thousands of Minnesotans have chosen a condominium or townhome over more traditional housing options. Still, many people considering a new association-maintained home often confront difficult questions involving association documents, standard interior finishes, and the change in lifestyle they may encounter in a multifamily environment.
As in most real estate, location is most important
When considering a new condominium or town home, several themes stand out. Initially, as in most real estate, location is most important. Proximity to work, major thorough-fares of transportation, and access to amenities including city or county trails, dining, and entertainment are key not only for your short term enjoyment, but for potential resale moving forward.
Choosing architectural design and amenities
The second theme that commonly arises when comparing association-maintained homes is the level of amenities. The design of the building or development is not often considered an amenity. However, the architectural nature of both the exterior and interior common spaces creates a sense of place and establishes the overall feel of the development. Natural materials, including brick, stucco, and stone should be utilized in an architecturally consistent manner that creates a unique but timeless identity for the new community. Avoid trends in architecture that include only the modern materials of the day as they date the development and cannot transition with new styles and trends in the future. Interior common spaces including a fitness center, club room, and outdoor greenspace such as courtyards and trails will increase the value of your new home.
Interior design options and upgrades
Interior design and product selections for your new condominium or townhome also represent an important theme in determining the look of your new home. Most developments have minimal pre-packaged standards offered at the base price. For more individualized selections, most buyers have to upgrade their selections, usually by spending more money. However, there are some association-maintained developments that offer a wide range of standard selections that include thousands of choices-without increasing the price. Be sure to shop all developments in the geographic target area in which you want to live to find the development that best fits your design needs.
Association rules and regulations
Lastly, all new association-maintained homes come complete with association documents that explain the rules and regulations that govern the development. Make sure to read all association documents as they will provide the rules that will dictate how the association elects board members, establishes reserve funds, pays for operation of the development by the management company, and creates pet policies.
Be selective in your search
Your search for a new maintenance-free lifestyle home can be an exciting adventure. Be selective in your search and seek out those developments that offer the amenities and lifestyle you value in a home.
FAQ
What are association documents?
Association documents include the articles of incorporation, bylaws, declaration, rules and regulations, and statutory warranties that govern the development. They are legal documents that should be read and signed by all new home owners in an association-maintained property.
What are association fees?
Association fees are generally paid to the management company to maintain both the interior and exterior common spaces in the development. The fees paid take care of landscaping and snow removal, as well as interior cleaning of hallways, entry foyer, fitness center, club room, underground parking, and courtyard or outdoor common greenspaces. In addition, association fees generally pay for sewer, water, and garbage removal, heating and cooling of the common spaces, hazard insurance for the building, and free standard and basic cable. (Most new condominium buildings or townhome developments are planned for category five wiring to accommodate high speed internet service.)
What is per-square-foot pricing?
Square-foot pricing is a term that identifies the total cost of the new home in terms of square-foot calculation. This is done to be able to compare similar homes in different geographic areas with varying degrees of standard finish for interior selections. For example, a new association-maintained home priced at $299,900 that contains 1,500 square feet of space results in a per-square foot price of $199.93 a square foot. In this market, new association-maintained condominium homes with high levels of standard interior finish typically start at approximately $250-$300 per square foot.
How is living in a condominium different than a single family home or townhome?
Living in a condominium does generate a different lifestyle approach than one would find in a single family home or townhome for several reasons. First, you are living in a multifamily environment with neighbors on at least one side and potentially above and below as well. Secondly, instead of having a large basement for fitness equipment or large family dinners, a condominium typically features common spaces including a fitness room and club room. These rooms may be used by anyone in the building for holiday dinners, business gatherings, or to simply work-out while watching the news. Third, pets are allowed in many condominiums. And, when your pet needs to return to nature, that process involves going on an elevator and accessing the local trails and parks or common courtyard. Lastly, underground heated parking is typically open and the space is different than your typical single family garage. Although there are typically storage rooms or cabinets available for purchase, condominiums often do not have space for shop equipment. However, some developments do have common amenities that do include a workroom.
When looking for a new condominium or townhome, what questions should I ask?
- What are the per-square-foot prices?
- What are the amounts of the association dues and what do they include?
- What type of soundproofing is done in between floors and in between walls?
- What are the standard interior finishes and what are the upgrades?
- What are the common amenities that the building offers?
- pool
- sauna
- fitness center
- whirlpool
- club room
- storage rooms or lockers
- open greenspace or courtyard
- entry or lobby appeal
- car wash
- guest parking
- spa
- Name of Management Company
- What neighborhood features are close to the development?
- How will the interior common spaces be designed and what is included?
- What are the approximate taxes?
- How have other comparable developments held their value?
Your search for a new maintenance-free lifestyle home can be an exciting adventure. Be selective in your search and seek out those developments that offer the amenities and lifestyle you value in a home.
