Condo Corner: Why the Building Matters as Much as the Unit

Condo Corner: Why the Building Matters as Much as the Unit

You walk into a condo and it checks all the boxes. The layout works, the location is right, and the price fits your budget. It is easy to start picturing yourself living there.

Before you get too far ahead, there is another part of the purchase to understand: the building and the homeowners association, or HOA.

When you buy a house, you are generally responsible for deciding when to replace the roof, repair the siding, or handle a plumbing problem. In a condo, those decisions and costs are shared. The HOA manages the common areas and plans for major expenses, while owners contribute through monthly dues and, sometimes, special assessments.

That means the condition and finances of the building can affect both what it costs to own the condo and whether a lender can finance your purchase.

Getting Condo Financing

Getting preapproved is an important first step, but it does not mean every condo will qualify for your loan. Depending on the loan and the property, the lender will likely review the condo project.

The lender will look at the HOA’s budget and reserves, the building’s insurance, any planned or overdue repairs, and other issues affecting the property. A beautiful unit can still raise financing questions if the building has problems the HOA has not addressed.

This does not mean most condos have a financing problem. As of August 2025, Fannie Mae reported that 3.6% of condo projects in its system had an “ineligible” status. The most common reasons were insufficient building insurance and critical repairs. It is a useful reminder to ask about the building early, even when the unit itself looks move-in ready.

A good reason to learn about the building early. Finding a potential issue after you have fallen in love with a condo, or after you are under contract, is much more stressful than asking questions at the start.

Where do you find the information?

In Washington, an important part of buying a condo is reviewing the resale certificate and the HOA documents that come with it. This is where we can look beyond the listing description to see the association’s finances, any disclosed assessments or major repairs, insurance information, and the rules that would apply to you as an owner.

I also like to read the available meeting minutes. A budget tells us what has been approved, while minutes can give us a better sense of what the board is discussing. If a major project keeps coming up, I want to understand its status and how the HOA expects to pay for it.

What are the HOA dues paying for?

Dues often include garbage, water, and sewer. As well as parking, amenities and ground maintenance, but it is more than that.

It is tempting to compare condos by purchase price and monthly dues alone. But a low HOA payment is not automatically a bargain, and a higher payment is not automatically a problem.

The useful question is whether the HOA is setting aside enough money for future work. A building needs ongoing maintenance, and larger projects such as a roof or siding replacement can be expensive. If there is not enough money available when work is needed, owners may face an increase in dues or a special assessment.

Look beyond the unit during your review

As we evaluate a condo, I want to know:

• Are there major repairs underway or being discussed?
• Has the HOA approved a special assessment, or is one being considered?
• What do the budget and reserve information tell us about future expenses?
• What does the master insurance policy cover, what are the deductibles, and what insurance would you need for your own unit?
• Are there rules about pets, rentals, parking, or renovations that would affect how you plan to live there?
• What are the rental regulations that could affect your future plans for the unit?

The answers do not have to describe a perfect building. Every property needs maintenance. What matters is understanding the issues, the plan to address them, and the potential cost to you.

A condo can be a wonderful way to own a home, especially when a single-family house is out of reach or simply does not fit the lifestyle you want. The key is to evaluate the whole purchase. You are choosing a home you love, along with a share of the building that supports it, and the HOA making the decisions.

If you are considering a condo in the greater Seattle area, I can help you look at both sides before you decide whether it is the right fit.