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There are plenty of perks to owning your own condo. Along with opening up the opportunity for a wise investment, purchasing a condominium also provides the opportunities for close-knit communities and incredible freedom.

See for yourself why condo living is so hard to beat.

What Condo Communities are Like

When you purchase a condo, you are investing not only in an individual unit but also a terrific community.

Condo homeowner associations, in particular, provide residents with a phenomenal opportunity to get to know the neighbors. Every unit owner is an automatic member of this association and therefore is invited to attend regular meetings to discuss community matters and get to know one another.

Community amenities also open the door for residents to cross paths. Many condos feature common spaces, such as fitness centers, pools, and resident lounges, which are open to any unit-owner or renter.

What you Have Control Over in a Condo

Overall, residents have a high level of control over their condo if they are the owners of their unit.

As long as unit owners abide by the rules set in place by their homeowner association, owners tend to have a fair amount of control over their interior unit. This involves the ability for owners to customize their space and manage renovation projects.

The HOA is then responsible for managing the exterior and common elements of the unit, such as hallways and lobbies.

How Condos Provide More Freedom Than Apartments

Apartment residents lease their units from a company or person, which significantly restricts the freedom one has when it comes to what they are allowed to do within their home.

Apartment companies tend to implement stricter regulations, leaving residents with a lot less opportunity for personalization within their units. The company has the final say in most of the renovation and design decisions and often tend to feature more uniform apartment units.

Apartment companies also realize that renters may be less inclined to take care of their units because it is not legally their property. Most buildings will enforce fines or penalties if rules are broken or ignored to encourage residents to maintain their leased units.

Condos, on the other hand, are independently owned, giving unit-owners much more independence. The only rules that condo owners are required to follow are those set in place by the homeowners association through the codes, covenants, and restrictions (CC&Rs), which can be found in the governing documents.

While some of these rules pertain to the interior units, they tend to be less restrictive than those set in place by apartment buildings. Also, since the members of condo HOA’s are the residents themselves, the rules are agreed up and set in place to protect the curb appeal of the community and maintain property value.

Condo living opens the door to great community and freedom! Start your hunt today and become an owner of your own condominium.

If you are looking into whether condos are cheaper than apartments, the answer may not be as simple as yes or no.

To determine which property makes the most sense for you, let’s examine the financial differences between owning a condo and renting an apartment.

Is a Condo or Apartment a Better Financial Choice?

If you are considering purchasing your own condo, expect to pay much higher up-front costs than if you choose to rent an apartment. However, don’t let these expenses scare you away.

When first renting an apartment, residents are often required to cover the first month’s rent along with a security deposit. Purchasing a condo, on the other hand, generally requires a sizeable downpayment. It may also require additional expenses, such as closing costs or lawyer fees.

On top of these up-front costs, condos also require monthly or annual homeowner association (HOA) dues. While HOA membership may increase owners’ out-of-pocket expenses, HOA helps to maintain the community and improve the value of the properties.

Weighing Costs Over the Long Run

When examining the costs of renting an apartment versus owning a condo over the long run, it is evident that a condo purchase is a wiser financial move.

While monthly rental costs are subject to increase over time, a fixed mortgage rate will ensure that your mortgage stays the same over time, regardless of fluctuation in the housing market.

Also, once you pay off your condo, the monthly mortgage costs halt, and the property is officially yours. However, regardless of how long you live in an apartment, those monthly rental costs are perpetual.

Appreciation and tax benefits are two additional incentives to a condo purchase. As a home appreciates, it accrues faster than a stock might because you get the appreciation on the entire home’s value, not just the gain your down payment cash invested. Also, homeowners are allowed to deduct mortgage interest and property taxes when they file tax returns each year.

Which is the Better Investment

If you have the credit or money-up-front to purchase a condo, then you have an opportunity to make a better investment than renting an apartment.

Unlike apartment rental payments, condo mortgage payments and initial costs are going towards a personal investment. So in the long-run, condo owners will have accumulated equity to show for the expenses.

As an apartment renter, when you write that monthly check to your landlord, you are paying for temporary occupancy without any ownership. While renting may make sense for someone who cannot afford to buy or in need of a temporary place to live, it’s not the wisest move for the long-run.

While it may be difficult to answer whether condos are cheaper than apartments, it is clear that condos are a better financial move for those seeking a long-term investment. If you are ready to take the financial plunge and find the perfect condo then contact an experienced broker today!

What is a condo? For starters, a condo is not the same thing as an apartment.

While condos and apartments share similarities, both are unique and suitable for different types of homebuyers.

Overview of Condos

The fundamental difference between condos and apartments comes down to ownership.

First, a condominium, or condo, is a collection of units that are each owned individually. This is similar to homeownership; however, the unit owners live in a shared building as opposed to on their own plot of land. Condo owners may decide to reside in their units or lease them out, making them the landlords of their property.

Condominiums are managed by homeowners associations (HOA). Each unit owner is a member of HOA and is required to pay monthly fees which enable upkeep and services provided to the community. These services may include external maintenance, garbage removal, and the upkeep of amenities, such as a pool or gym.

Homeowners Associations are also responsible for establishing the rules and regulations that residents must abide by through governing documents. These documents are formally known as the Covenants, Codes, and Restrictions (CC&Rs). Before moving forward with a purchase, it is critical that prospective buyers thoroughly examine these CC&Rs to have clear expectations of resident guidelines.

Condos vs. Apartments

While condo units are independently owned, apartment units are all owned by one person or company and located in a single building. The owner of the building often hires a property manager, who is responsible for much of the unit maintenance and management. This means that they will take care of leasing out units, purchasing large appliances, and ensuring the units are up to code.

Apartment tenants pay a monthly rent, without accumulating any equity during their residence. On the contrary, condo owners set themselves up with an investment. The monthly mortgage that they owe on the house obtains ownership over their property and the potential to sell later and profit on their unit.

Many house hunters find themselves drawn to condominiums because of the impressive amenities offered. In general, condos offer a more extensive list of amenities than apartment buildings. Many luxury condos boast valet-service, coffee shops, concierge, spas, and even more. While these services are tempting, keep in mind that they will increase the costs owners and renters end up spending.

Condo Communities

While it is possible to find a sense of community living in both apartments and condos, condo communities tend to promote greater opportunities for neighbors to get connected.

First, condo residents tend to stay put longer than those living in apartments. The lower turnover rate in condo units helps strengthen neighborhood relations.

Additionally, each condo owner’s HOA membership further promotes community. Residents have an easy opportunity to come together to get to know one another and discuss community visions, goals, and guidelines.

Now that you can answer ‘what is a condo?’, you may be better able to answer whether this is the right investment for you. If you are ready to find the perfect condominium, find an experienced broker to help with the process today.

Chicago is a Great Place to Live, Work, and Play

Buying a condo or townhome in Chicago not only gives you access to extensive professional opportunities, exciting nightlife, and a legendary food scene, but it also makes you part of a historic (and ever-growing) community.

From the bars and boutiques of Old Town to the hustle and bustle of The Loop, wherever you decide to call home in Chicago is sure to combine the best of home, office, and entertainment.

So how can you go about buying a condo in Chicago? Sure, it can be a complex process just like buying a single family home, but as with any home purchase, the result is worth it. Let’s review the steps needed to buy a condo in Chicago.

Get Pre-Approved for Financing

You might be tempted to contact an agent right away, but getting pre-approved by a lender can actually save you a lot of time and hassle upfront.

If you’ve already done some research, you might think getting pre-approved is a hassle. However, gathering information early allows your lender to determine the loan amount you qualify for. And once you’re pre-approved, you’ll have a letter that you can use in negotiation with a seller to show that you’re ready and able to purchase the condo.

Here’s a quick overview of the documents you’ll need:

1. Photo ID and Social Security card
2. W-2s for the past two years
3. Tax returns for the past two years
4. Bank/asset statements for the most recent two months
5. Pay stubs for the past 30 days

While additional documents may be required, particularly for self-employed borrowers or if you’ve had any recent credit events, getting this information ready for your lender will save a lot of time.

Make Sure the Condo is Approved

Getting a mortgage for a condo requires that the condo be on an approved list, such as for FHA and VA loans, or for the condo to undergo a review by the lender, such as for conventional loans.

For FHA and VA loans, you can get a head start to determine whether your condo is eligible for that loan type. Search FHA approved condos here, and VA approved condos here.

Condo lists for conventional mortgages aren’t extensive, but that doesn’t mean you can’t buy a condo with a conventional mortgage. Your lender needs to conduct a limited review, which involves sending the condo association some paperwork to fill out. The lender will review it, and if everything looks good, you’ll be all set.

Proceed with Final Steps

Once you’re pre-approved and have signed a purchase contract, you’ll return it to the lender and complete the loan approval process. The lender will verify the information in your application and submit the loan to an underwriter for final review.

If the underwriter requires additional information or explanations, you’ll be informed and should do your best to address these requests (called “conditions”) as quickly as possible so that your loan can proceed. Once conditions are cleared, your loan will be approved, and you’ll have the clear to close.

An escrow account will be set up to transfer funds between you and the seller. Your lender will also set up an escrow account for the distribution of fees like taxes and insurance. Condo association dues likely won’t be paid through an escrow account.

When the time comes to close on your condo, you’ll attend a meeting along with your agent, attorney, title agent, and any seller-side representatives. Be prepared for a long meeting. If you have any questions, let your agent and attorney know. They’re there to help you.

You’ll review your final Closing Disclosure and verify that everything looks accurate. You’ll sign a lot of paperwork and pay closing costs. When the loan funds, you’ll receive your keys to your new Chicago condo.

Ready to find your dream home? Contact our preferred lender today.

With over 350,000 homeowners associations (HOA) in the United States, a large portion of these associations are responsible for managing townhome communities.

If you are in the market for a new townhome that is managed by an HOA, it is crucial to understand exactly how townhome associations operate.

What do Townhome Associations do?

Townhome associations serve the same function as any other homeowners association. Their ultimate mission is to help maintain the quality of life for community residents and protect their property value.

These associations achieve these goals by enforcing regulations and collecting assessments from homeowners, while also taking care of maintenance repairs and upkeep of common areas.

Through the homeowner’s monthly fees, HOA’s fund and provide services that keep the community in good shape.

Common HOA services include lawn maintenance, garbage removal, and building repairs. Luxury communities may also provide more exclusive services such as 24-hour valet and a concierge.

Many HOAs also help manage community amenities, including neighborhood pools, gyms, and clubhouses.

What Rules do they Have?

For homeowner associations to carry out their functions to the best of their ability, they need cooperation from the community members. Townhome association’s expectations of unit owners are laid out as rules in their covenants, conditions, and restrictions (CC&Rs) within the governing documents.

Each townhome association is responsible for creating their own set of CC&Rs upon establishment.

Many common townhome associations rules revolve around financial responsibilities, pet regulations, rental guidelines, and maintenance standards.

Whatever the CC&Rs may be, they are not voluntary. Residents have a legal obligation to follow these HOA rules or they may face fines or legal action.

How they Differ from Condo HOAs

The major difference between townhomes and condos comes down to ownership. Condo owners have title to everything within the unit, while townhome owners have the right to the inside of the unit as well as the land that the unit sits on.

Despite this difference, townhome associations operate very similarly to condo HOAs. Both are responsible for maintaining the common grounds, structures and systems in the community and both rely on funding from unit owners.

Often, townhome owners are responsible for more upkeep than condo owners, which means the HOA is less involved. This lower involvement by HOA frequently results in lower monthly dues for townhome owners.

Since townhome owners own that land that their property sits on, they may be responsible for maintaining the outside. However, frequently HOA will still take care of this area through monthly fees.

Townhome associations help to preserve communities and take some of the burdens off residents.

In the United States, Homeowner Associations spend over 80 million cumulative hours of service annually. So what exactly is all of this time spent doing?

We are here to provide some insight into what homeowners association can do and what their roles are in the communities they manage.

How HOAs Help the Community

Homeowner associations came into existence in the mid 19th century but did not begin picking up traction until the 1960s. Since then, HOAs have increasingly become a common method to manage community developments.

Currently, approximately 23 percent of the U.S. population belongs to a community association.

Ultimately, homeowner associations are in place to help maintain the quality of life for community residents and protect their property value.

Through funding from homeowner’s monthly fees, HOAs help provide services that keep the community in good shape.

Common HOA services include lawn maintenance, garbage removal, and building repairs. Luxury communities may also provide more exclusive services such as 24-hour valet and a concierge.

Many HOAs also help manage community amenities, including neighborhood pools, gyms, and clubhouses.

How they Help Resale Value of Condos

Homeowner Associations help communities beyond day-to-day operations by maintaining and improving resident’s property values.

Research reveals that HOAs have the potential to increase residential property values through neighborhood preservation, restrictive covenants, and enhanced efficiency.

Neighborhood preservation focuses on maintaining curb appeal. The HOA rules and regulations ensure that the community stays in tip-top shape and desirable for potential buyers. The provision of services provided by the HOA, such as garbage removal and community maintenance, as helps to keep the neighborhood in pristine condition.

Restrictive covenants set by the HOA ensure that communities maintain a certain level of quality. These rules may include restrictions and limitations of types of pets owners can have, the number of cars parked in a driveway, and location of satellite dishes.

HOAs enhance community efficiency by creating an organized structure to address a variety of issues in the most effective manner. By addressing multiple issues such as crime, aesthetics, neighborhood behavior monitoring, and professional management,  HOAs are potentially contributing to increased housing prices.

Enforcing Rules and Fees

For homeowner associations to carry out their functions to the best of their ability, they need cooperation from the community members. Rules and fees help accomplish this cooperation.

HOAs enforce fees to help fund their services and amenities they provide to the community. Property owners are required to pay monthly dues as members of the homeowners association.

To ensure accountability, HOA also implements rules in there governing documents that property owners are expected to follow. Otherwise, penalties, such as extra fines or legal action may be taken. Many of these rules enforce timely payments of fees and restrict residents from trashing the outside of their units.

When it comes to understanding what homeowners associations can do, it is essential to know that these organizations are in place to better serve and preserve communities.

While most homeowners aren’t surprised that HOAs come with their own set of rules and regulations, many people still have questions regarding the specifics of these rules.

As members HOA, it is essential that unit owners have a clear understanding of their condo HOA rules. Otherwise, they may face unwanted penalties.

To avoid these consequences and feel more confident as a member of HOA, we are here to help break down these rules so that you know exactly what is expected of you as a homeowner.

What Rules Condo HOAs Have to Follow

As formal establishments, condo HOAs are not exempt from following a set of rules.

First, it is important to understand that there is an HOA board and management company responsible for making sure a condo community runs effectively.

The two different entities have their own roles and expectations.

The HOA board is comprised of elected volunteers, often community residents, who help manage the upkeep of the community. Here are a few basic rules and expectations of a condo HOA board:

• Act in a fair and consistent manner
• Refrain from voting on issues or making decisions that present a conflict of interest
• Maintain confidentiality
• Treat homeowners and other board members with respect during discussions and throughout any dispute resolution

The HOA board hires an HOA management company which provides helpful business advice and facilitates day to day operations. Their role is to implement the guidelines set by HOA, ensuring that they work in accordance with the state and national laws that protect homeowners.

What Rules Condo HOAs Expect you to Follow

Every homeowners’ association establishes their rules through their own covenants, conditions, and restrictions (CC&Rs). These CC&Rs apply to all condo residents and cover expectations regarding resident behavior, architecture, and common responsibilities.

Many common condo rules and regulations revolve around financial responsibilities, pet regulations, rental guidelines, and maintenance standards.

Arguably one of the most critical expectations as a condo owner is paying monthly HOA fees on time. These fees are non-negotiable and critical for HOA to fund services and amenities for the community.

How Rules are Enforced

Whatever the CC&Rs may be, they are not voluntary. Residents have a legal obligation to follow the condo HOA rules or they risk facing fines and/or legal action.

Generally, if the HOA board notices that a resident is not following a rule or missing HOA dues, a warning will be set in place- often in the form of a written letter. Along with the letter, residents may receive additional fines on top of their monthly fees. If you don’t pay the fine or respond to letters from the board, property manager, or a collection agency, the HOA can and will turn to small claims court or file a lien against your property.

To avoid any one of these penalties, it is crucial to follow the rules and pay your dues.

As a homeowner, it is part of your responsibility to know and follow the condo HOA rules. This will ensure a better community for all parties.

Among the more than 300,000 community associations in the United States, only about half maintain their insurance policy. Out of that half, only about 25 percent maintain adequate coverage.

This is problematic because HOA insurance is a crucial aspect of any community managed by an association.

If you want to make sure your current or potential condominium is insured sufficiently, here is everything you should know about condo HOA insurance.

What Kind of Insurance do Condo HOAs Have?

If you are living in a property managed by an HOA, the chances are that a portion of your mandatory monthly dues is helping to fund the homeowner association’s insurance policy.

To protect everything managed by the HOA, it is crucial that condo developments have what is called a master policy. Without this form of coverage, the HOA may levy special assessments on unitholders if an unexpected disaster was to occur and the building would need extreme repairs.

HOAs must be sure to also have hazard and liability insurance for specific areas of the condominium development, often including common areas, like stairwells and pools, and some exterior elements such as the condo’s roof.

Additionally, many homeowner associations purchase Directors and Officers Insurance as well as employee theft protection to ensure the financial security of the HOA and the people running the HOA.

What is the Insurance Meant to Cover?

Master policies generally cover damages and personal injury. The damages covered by a master policy involve damages to the shared property, which may be a result of storms, fires, criminals, etc. General liability insurance covers costs of any lawsuits for medical expenses filed by people injured in the common areas of the property.

Directors and Officers Insurance policies: This specific type of insurance covers both legal defense costs and damages if a homeowner decides to sue its HOA. This policy does not cover intentional misconduct.

Employee theft insurance can protect the association if a director, officer or property manager embezzles HOA funds.

How can you Check that your HOA has the Right Insurance?

To ensure that your homeowners’ association has sufficient coverage, it is critical to thoroughly review your community’s master insurance policy. Check to see what the policy covers in case of emergency and what your HOA is responsible for.

It is also helpful to make sure that the HOA governing documents do not conflict with your HOA master policy regarding the HOA duties to the unitholders.

Now that you have more insight into the importance of HOA insurance, be sure that your potential condo HOA is adequately insured before you purchase.

According to the U.S. Census Bureau, the average HOA fee runs residents $396 a year. This same research study also reveals that these numbers are on the rise.

So why exactly are homeowners required and willing to pay these extra costs? Well, we are here to help better answer that question.

Why are there HOA Fees for Condo Owners

Although homeowners are quick cringe at the word “fee”, the reality is that these expenses help maintain the upkeep of the neighborhood and quality of life for condo residents.

When people become condo owners, they also become automatic members of an HOA. With this membership comes monthly or annual dues to help fund the amenities and services the association provides.

HOAs also increase the exclusivity of condos, increasing the desirability of the property for current and future unit owners.

What do the Fees Pay For

Condo HOA fees may fund a wide variety of services and amenities. That is why it is crucial for prospective home buyers to investigate HOA policies before purchases to learn precisely what the dues cover.

Most HOA policies will cover basic services, such as building maintenance, landscaping, and garbage removal. Common amenities may also include a pool or gym.

Higher-end condominiums often utilize member fees to help fund luxury services and amenities. Today it is common for exclusive buildings to provide valet, a concierge desk, spas, and other resort-like features.

Naturally, the more services and amenities provided, the higher those monthly dues will cost unit owners.

A smaller portion of HOA fees goes towards the association’s administration, including legal, accounting, and management services.

What if you Don’t Pay the Fees?

So what happens if you miss a monthly fee?

While the repercussions may vary depending on what state you are in, there are basic penalties that the HOA will put into action.

First, be prepared to receive a letter reminding you of your outstanding debt immediately. The HOA may also add on a fine and/or interest on that missed payment.

Often, the HOA may also revoke homeowner rights. This may include taking away your privileges to vote on HOA matters or utilize common areas, such as a gym or pool.

To avoid these consequences, be sure to pay your fees in a timely manner; and if you do happen to miss a payment, make sure to keep open communication with your HOA board to resolve the issue and minimize penalties.

With a better understanding of condo HOA fees, we hope you feel more confident navigating your next home purchase! Experienced real estate brokers are also available to help make the process even smoother.

According to the Foundation of Community Association Research, approximately 24 percent of all U.S. residents belong to a community association. Their research also reveals that this number is continually on the rise.

If you are in the market for a condominium, the chances are high that you will also be a part of this growing trend. Here is everything you need to know about condo HOAs:

Why Condo HOAs Exist

By definition, a homeowners association is a legal entity that governs a community of homes, including subdivisions, condominiums, townhomes, or planned community. HOAs operate within state statutes to enforce regulations and collect assessments from homeowners, while also taking care of maintenance repairs and upkeep of common areas.

Homeowners Associations have been around since the mid-nineteenth century. In fact, 1844 marks the year that the first HOA was founded in Boston, Massachusetts. However, HOAs did not pick up much traction until the 1960s. This was a period of rapid national growth for the United States, and suburban development specifically was booming.

Since this time of growth, HOAs have been on a constant rise in America. More home buyers are finding themselves drawn to the exclusivity of HOAs as well as the supplemental services and amenities they provide.

How HOAs are Created

When new communities are developed, often new HOAs also come into creation. While the process for establishing an HOA may look different depending on the location, there are standard procedures.

Upon the creation of a new community, the developer establishes a business structure by forming an LLC or nonprofit corporation. The shares of the HOA are allocated as the developer sells units.

Once formed, the HOA is responsible for creating covenants, conditions, and restrictions (CC&Rs) that describe how the HOA will operate and what rules homeowners must abide by. During this process, a procedure for future modification of the CC&Rs is implemented and rules and regulations are written, putting the CC&Rs into easy-to-understand language for community residents.

The next step involves drawing up governing documents, such as articles of incorporation and bylaws (which outline meeting frequency, voting guidelines, the election of HOA leaders, and other operating procedures).

Finally, the HOA must elect qualifying officers and board members. This board takes on the responsibility of managing all aspects of the community’s homeowners association.

What Their Main Mission Is

Ultimately condo HOAs are in place to help maintain the quality of life for community residents and protect their property value.

Through the funding provided by the owner’s monthly assessments, HOAs takes a significant burden off residents by keeping up with community maintenance.

Not only does this maintenance help alleviate resident’s stress and responsibilities, but it also helps ensure community curb appeal. HOA help keep the neighborhood in pristine condition, promoting a desirable location for potential buyers and an enhanced environment for residents.

While HOA takes care of a lot of maintenance, owners are still held accountable for keeping the community in good shape through rules and fees. The rules restrict residents from trashing the outside of their units, and the fees provide funding for external maintenance.

Around the 1940’s, architecturally significant buildings in some of Chicago’s finest neighborhoods began undergoing conversion into co-ops for many of the city’s leading families.

While many of these original co-ops still exist, the cooperative Chicago housing market is expanding. Not only are new co-ops sprouting up, but this type of housing has become more affordable, opening up opportunities for more residents.

Where Co-op Chicago Housing is

In Chicago, you will easily find co-op housing in the best parts of the city with the greatest views. Neighborhoods like Lakeview, Lincoln Park, Gold Coast, and Hyde Park boast incredible pre-War and Art Deco cooperative buildings.

Cooperative Communities of Chicago offers a fantastic resource for anyone looking to learn more or find a co-op property in the city for themselves. Not only does this co-op hub offer insight and advice to prospective buyers, but it also provides a directory of currently available co-op listings in the Chicago area.

New Co-op Opportunities on the Market

Historically, co-op housing flourished on the north side of Chicago. However, the tides are changing, and Qumbya Housing Cooperative is bringing co-ops to the Bronzeville neighborhood. This cooperative offers four buildings with 70 units. In

Logan Square has also seen various co-ops recently pop up on the market. The Ema Goldman Cooperative offers beautiful multi-family living quarters in a unique 1920’s era flat. Check out the available unit with three bedrooms, two-baths

The Pilsen Housing Cooperative is a fresh project opening up multi-building co-op housing on the lower west side of Chicago.This cooperative is the first limited-equity housing cooperative in the Pisen neighborhood.

Co-ops with Unique Amenities

If you are looking for all the bells and whistles, 1500 North Lake Shore Drive, situated in Gold Coast, offers one of Chicago’s most exclusive cooperative housing. The stunning building boasts enormous units, incredible views of Lake Michigan, and uniformed staffers to fetch residents’ cars

3750 North Lake Shore Drive offers expansive floor plans inside a beautiful neoclassical building right next to the Belmont harbor. The vintage pool remains a favorite amenity among guests.

Over in Hyde Park, Powhatan Apartments offer the premier cooperative on the south side. Along with the impressive architecture and interior deco, the building provides residents with staffed elevators, an indoor pool, rooftop deck, and large ballroom.

For house hunters desiring environmentally sustainable living, check out HUB Housing Cooperative in Chicago’s Little Village neighborhood. This six-unit apartment building, with two units currently available, offers residents a large storage space for bicycles, compost recycling, and community sustainable agriculture.

Regardless of which type of co-op you are looking for, the Chicago cooperative housing market offers a wide variety of properties all throughout the city.

Contact an experienced real estate expert today to help find the co-op that best fits your needs today!

If you are debating between cooperatives (co-ops) and condominiums (condos), it is essential to understand that these distinct properties each come with their own set of pros and cons.

Here is everything you need to know about co-op vs. condo advantages and disadvantages so that you can better weigh your options to find the perfect home.

Responsibilities of Living in a Condo

Many people chose to live in a condo because this property offers residents major convenience.

The list of owner responsibilities is minimal compared to other properties, but here are a few standard expectations of condo residents:

• Adhering to HOA’s governing documents– As a member of HOA, condo residents must follow the rules and regulations that HOA mandates. These governing documents commonly contain rules dealing with matters such as leasing the units and altering the interior of units.
• Paying HOA dues– Condo residents enjoy convenient living because HOA manages most of the maintenance and upkeep of the external area of the building, including shared spaces. To fund the service provided to residents, all unit owners pay monthly or annual fees.
• Paying HOA assessments– Occasionally HOA will need to charge residents additional fees to cover for special projects or unforeseen expenses not covered by regular HOA fees.
• Insurance and taxes– Just like any property ownership, insurance and taxes are required.

For a closer look at condo responsibilities, check out the Illinois Department of Financial and Professional Development.

Responsibilities of Living in a Co-Op

When it comes to living in a co-op, tenants must follow all of the duties laid out in their proprietary lease.

Similarly to condo requirements, those living in co-ops are still responsible for abiding by the governing documents, as well as paying monthly fees and any additional assessments. However, instead of paying HOA, these fees go to the cooperative. The fees that each co-op resident pays is dependent on the number of shares that a person has in the company that owns the building.

Co-op residents are also responsible for paying taxes and providing insurance. However, they do not need to worry about covering title insurance because they are not purchasing ownership of the physical unit.

Pros and Cons of Condos vs. Co-Ops

Here is a quick look at the major pros and cons of living in condos and co-ops.

Condo pros:

• Less extensive buying and selling process
• Less expensive HOA fees
• Leasing out or flipping property is generally allowed by HOA
• A better investment
• Many property listings on the market

Condo cons:

• Higher owner turnover rate
• Higher entry costs
• Additional costs for title insurance
• Residents do not have a say in who lives in the building

Co-op pros:

• Low entry costs
• A better deal per square feet
• Residents often have a say in who moves in
• Long-term residents which promote close-knit communities
• Known for being well-managed

Co-op cons:

• Extensive and often long buying/selling process
• Higher monthly fee (these fees include property taxes)
• More difficult to obtain financing
• Do not make good investments (generally no leasing)
• Not as many co-op listings on the market

With more insight into condos vs. co-ops hopefully you can feel more confident in making the big decision! Keep in mind that an experienced broker can also help streamline this process.

While cooperative housing, also known as co-ops, closely resembles condominiums, this type of property functions in a unique way. Here are all the ins and outs of cooperatives.

What is Cooperative Housing?

Cooperative housing provide multiple units in a single building which often offers residents common shared space similarly to condos.  However, instead of purchasing title to the property, buyers acquire shares into a corporation that owns the building.

Co-ops often feature old historic buildings, boasting stunning architecture, unbeatable character and unique floor plans in each unit.

Residents may get a few units on each floor or even multiple stories. Generally, the larger the apartment, the more shares the buyer must purchase.

How do you Get into a Co-op Building?

When it comes to obtaining cooperative housing, buyers should know that it is a more restrictive process than condo purchases for a few reasons.

While cooperative housing allows financing, there are many more limits in place compared to condo purchases. Also, current co-op shareholders often have a say in who moves in the building.

Buyers often must go through an approval process to make sure they can afford their share of the building. This process frequently involves an application, a detailed balance sheet, and several personal and professional letters of reference. Some co-ops also request to see tax returns. Once the co-op board has received and reviewed the buyer’s application, an interview is scheduled, and then the buyer may be officially approved.

When homeowners are ready to leave a co-op, instead of selling the unit, he or she must resell their shares in the co-op. Depending on the housing cooperative, the shareholder may have to sell the stock back to the corporation at the original purchase price. Then when the corporation finds a new buyer for the unit, the profit is divided and distributed among all of the co-op shareholders. In other co-ops, the original shareholder may get to keep the profits.

When reselling co-op shares, the process of approval for a new shareholder looks identical.

Is there any resale value?

Since the primary benefit of buying shares to a co-op is a better value for your space, it is not an ideal property for an investment or profiting after a resale.

Cooperatives promote long-term residency, as opposed to many condominium buildings.This is why buyers are discouraged or prohibited from leasing or flipping the unit for investment.

Oftentimes, when co-op residents are ready to move, they are required to sell their shares back to the corporation for the original purchase price, with all of the shareholders collectively sharing the profit once the the shares are resold. In other cases the shareholder moving will get to keep the profit.

If you are a prospective buyers looking for a home that provides charming character, great value, and a sense of community, find an experienced broker and begin the search for the perfect cooperative housing today!

When shopping for the perfect apartment, home buyers may consider cooperatives (co-ops) and condominiums (condos). While both property types share a resemblance, prospective buyers need to be aware of the differences between co-ops and condos.

What Condo Housing Is Like

Condos and co-ops are similar in the fact that they are separate units in a single building with shared common areas, such as a lobby or outdoor recreational space.

The main discrepancy between the two property types comes down to the ownership terms of the units.

When a buyer purchases a condo, he or she is gaining a title or ownership of the individual unit. Condo owners are expected to pay fees to HOA, which manages and maintains the exterior and shared spaces of the community.

Due to a large amount of shared common space in condominiums, it is not uncommon for neighbors to cross paths. While the common areas vary depending on the specific condo community, many condo residents share hallways, stairs, lobbies, elevators, parking lots, and common building entries and exits.

What Co-Op Housing Is Like

Co-ops, on the other hand, are owned by a corporation. This means that rather than acquiring title over the physical unit, the buyer purchases shares of the company. A shareholder of the company is entitled to a proprietary lease, giving him or her the right to occupy a specific dwelling unit.

Co-ops, specifically ones situated in Chicago, often feature old historic buildings, boasting stunning architecture, unbeatable character and unique floor plans in each unit.

In a cooperative building, residents may get a few units on each floor or even multiple stories. Generally, the larger the apartment, the more shares the buyer must purchase.

When it comes to obtaining cooperative housing, buyers should know that it is a more extensive and restrictive process than condo purchases.

What are the Communities Like

Condo and co-op living can vary dramatically depending on what services and amenities the community offer, as well as where the building is situated.

Some communities offer residents top-notch luxury, with features such as 24-hour gyms, pools, and saunas.

Because residents in both condos and co-ops live in close proximity to neighbors, there is often a higher sense of security and community in these buildings as opposed to single-family homes.

However, condos have a higher turnover rate than co-ops, meaning that it may be more challenging to develop long-term relationships with neighbors.

Co-op residents usually get a say as to who gets to move into vacant units, making these properties more selective and unified.

The condo vs. co-op battle is one without a clearly defined winner. Both property types offer homeowners unique living experiences. Find an experienced broker today to help find the property that best fits your needs!

During the hunt for the perfect home, you may find yourself trying to decide between purchasing a condominium (condo) or a cooperative (co-op). While the two types of residences share similarities, it is essential that any potential buyer can thoroughly distinguish the different properties.

We are here to help break down the differences between condos and co-ops so that moving forward you can feel confident making the perfect purchase.

What’s The Difference Between a Co-op and a Condo?

Co-ops and condos closely resemble each other in the fact that they offer separate units in a single building. These buildings also provide residents with shared common areas, such as a lobby or outdoor recreational space.

The main difference between the two property types comes down to the ownership terms of the units.

When buyers purchase a condo, they are gaining ownership of the individual unit and paying fees to the HOA, which manages the exterior and shared spaces within and around the building.

Co-ops, on the other hand, are homes you do not actually own. Instead, companies own them. This means that rather than acquiring the title to the physical unit, the buyer purchases shares of the company. A shareholder of the company is then entitled to a proprietary lease, giving him or her the right to occupy a specific unit.

Due to the varying nature of co-op and condo ownership, there are other noticeable differences between the two properties, including the application process, building types, pricing, and taxes.

How Does Cooperative Housing Work?

Co-ops, specifically ones situated in Chicago, often feature old historic buildings, boasting stunning architecture, unbeatable character and unique floor plans in each unit.

In a cooperative building, residents may get a few units on each floor or even multiple stories. Generally, the larger the apartment, the more shares the buyer must purchase.

When it comes to obtaining cooperative housing, buyers should know that it is a more restrictive process than condo purchases for a few reasons.

While cooperative housing allows financing, there are many more limits in place compared to condo purchases. Also, the co-op board has a major say as to who moves into the building. However, no person can be turned down because of age, race, sexual orientation, or religion (or other discrimination categories defined by both state and federal statutes).

Buyers must go through an approval process to make sure they can afford their share of the building. The cooperative housing process frequently involves an application, a detailed balance sheet, and several personal and professional letters of reference. Some co-ops also request to see tax returns. Once the co-op board has received and reviewed the buyer’s application, an interview is scheduled, and then the buyer may be officially approved.

Once buyers are approved, they are discouraged or prohibited from leasing or flipping the unit for investment. Cooperatives promote long-term residency, as opposed to many condominium buildings.

Co-op vs Condo Advantages and Disadvantages

Since co-ops and condos are uniquely different, they each offer their own advantages and disadvantages. It is important for house hunters to consider the pros and cons of each to determine which property is most suited for them.

Co-ops– While one of the advantages of living in a co-op includes getting a better deal per square feet than condo units, higher monthly fees pose as a disadvantage.

The buying and selling process is a bit more tricky when it comes to cooperatives. Not only is the application process more extensive, but loans are more challenging. It is always wise to involve a broker who can provide critical knowledge and guidance during these stages.

This extensive buying process partially explains why the resale time for co-ops is much longer than condos. In fact, million dollar cooperatives have been known to sit on the market for years.

While co-ops are more restrictive than condos, these buildings are known for being managed extremely well.

Condos- For any home buyer seeking an investment, condominiums are the way to go. Not only is the resale process much quicker and easier, but leasing out condos is generally permitted, unlike co-ops.

While the ease of leasing and moving out of condos may be an advantage for some, this also may pose as a disadvantage for those looking for a more permanent place with a tight-knit community. Condominiums often have a higher turnover rate, with new residents frequently coming and going.

Who’s Responsible? Condo vs. Co-op Maintenance Fees

Many buyers are surprised to learn that monthly co-op fees are higher than condo fees. The reason for this is that co-ops bundle multiple expenses into one bill, including gas, water, and property tax.

Condominium maintenance fees, on the other hand, strictly reflect the expense of maintaining the building.

Maintenance fees can vary dramatically in price, for both condos and co-ops.

While HOA fees are standard across the board for all condo owners in the same building, the fees that residents pay for a co-op are based on their percent of shares in the company. For example, if a co-op shareholder owns 10 percent of the building, they will pay 10 percent of the maintenance bills.

While some buyers appreciate this expense method, people who travel frequently may not find it to be cost effective.

Condo vs. Co-op Taxes — What You Can Expect

If you are a condo owner and own the physical unit, you are expected to pay separate and individual property tax.

Co-ops, on the other hand, do not require separate tax payments. Instead, monthly maintenance fees include property taxes. This is because the government taxes the entire building as one entity and then that cost is distributed based on the percentage interest of the co-op owners through maintenance fees.

Condo owners can often expect higher property taxes. Because condominiums are newer, larger, and come with more amenities, they tend to have a higher market value, which results in increased taxes.

The cost of property taxes for both condos and co-ops are dependent on the mill levy and the assessed value of your property. The mill levy is simply the tax rate imposed on your property value and varies depending on the tax jurisdiction. The assessed value of your property is an annual estimation of the reasonable market value of your condo or co-op based upon local real estate conditions. These conditions may include factors such as the selling price of similar properties in the area, replacement costs for the property, and maintenance costs for the property owner.

To determine the property tax for your home, the assessed value is multiplied by the mill levy.

Where Can You Find Co-op Chicago Housing?

If you find yourself drawn to the idea of cooperative housing, but not sure where to look, we have got you covered.

In Chicago, you will find co-op housing in the best parts of the city with the greatest views. Neighborhoods like Lakeview, Lincoln Park, Gold Coast, and Hyde Park boast incredible pre-War and Art Deco cooperative buildings.

Cooperative Communities of Chicago offers a fantastic resource for anyone looking to learn more or find a co-op property in the city for themselves. Not only does this co-op hub offer insight and advice to prospective buyers, but it also provides a directory of currently available co-op listings in the Chicago area.

Recently, Logan Square has seen various co-ops pop up on the market. The Ema Goldman Cooperative offers beautiful multi-family living quarters in a unique 1920’s era flat. Check out the available unit with three bedrooms, two baths.

Little Italy also offers a fair selection of co-op housing, including the HUB Housing Cooperative which features a six-unit apartment building with two units currently available. This co-op focuses on sustainable living offering residents a large storage space for bicycles, compost recycling, and community sustainable agriculture.

Whether you are looking for a home rich in history and character or a breezy buying and selling process, condos and cooperatives both offer home buyers unique benefits.

Contact an experienced real estate expert today to help find the property that best fits your needs today!

When it comes to examining property insurance, the good news is that both condo and townhome insurance tend to run less expensive than single-family home insurance. However, it is important for any potential buyer to understand condo vs. townhome insurance.

Types of Coverage You’ll Need in a Condo

The key distinction between condo and townhome insurance comes down to the areas each property owner is responsible for.

While townhome owners need to provide coverage for the interior and exterior of their property, condominium owners claim responsibility for the interior of their unit, while HOA covers the exterior.

If you are considering purchasing a condominium, the good news is that condo associations take some of the insurance burden off the owners by providing partial coverage. However, condo owners still need additional protection through individual homeowners insurance policies.

Before determining what coverage a condo owner needs, it is critical to first examine the condo association’s policy found in the HOA’s declaration pages.

Often condominium HOA insurance policies will cover the common areas and most of the building’s exterior.  However, individual owners are responsible for the inside of their unit.

Individual condo insurance, known as HO-6 insurance, covers the interior of each condo unit, the condo owners’ possessions, and provides the owner with a liability policy.

The average cost of a homeowner’s insurance policy for an Illinois condo runs approximately $365 per year or $30 per month, which is relatively low compared to the rest of the country.

Types of Coverage You’ll Need in a Townhome

Townhome insurance, known as HO-3,  generally works the same as insuring a detached single-family home.

The insurance policy covers the unit as well as any outdoor space the owner has title to. This outdoor space includes the yard and any patio or balcony that the townhome may offer.

HO-3 covers fire damage and some storm damage, however flood and earthquake insurance are both optional coverage the homeowner may chose to add.

Similarly to condo homeowner associations, townhome HOAs cover any common space that residents have access to.

The price for townhome insurance can vary dramatically depending on which coverage the resident choses to include in their policy.

Which Type of Insurance is More Expensive

Townhome insurance coverage tends to cost more than condo insurance because it is more expansive.  A townhome owner has more ownership than a condo owner, since they have title to the interior and exterior of the unit, therefore they have greater risk associated with their property.

However, depending on individual insurance plans, it is important that prices may vary drastically.

Before choosing your perfect property make sure you take the insurance costs into consideration so that you can budget accordingly.

Understanding condo vs. townhome insurance can help you avoid potential discrepancies during your purchasing process.

Many people find townhomes so appealing because they boast benefits of single-family properties, like the yard and multiple stories, yet often come with the convenience of a condo, including less maintenance and community amenities.

If this sounds like the best of both worlds, then a townhome may be the ideal property for you. Before making the big decision, here is everything you need to know to avoid being blindsided by townhome fees.

Townhome HOA Fees

Townhome residents are members of their neighborhood’s HOA, which requires monthly or annual dues.

Member fees ensure common space maintenance and upkeep, which may include activities like pest control of common areas and garbage removal. Despite the extra cost, these fees save residents time and energy.

Another plus for townhome owners is that their HOA fees are usually less expensive than condo fees because the HOA is less involved in property maintenance.

While townhome owners’ monthly expenses are lower than condo owners, maintenance work can require much higher out of pocket expenses because unit owners are solely responsible for the indoor and outdoor space of their unit.

On average HOA fees will run townhome residents $200 to $400 per month depending on services and amenities that the neighborhood provides.

It is also important to be aware that these fees can potentially increase over time. In order to stay up to speed with these changes, it is critical that townhome owners regularly attend HOA meetings.

Along with monthly or annual HOA dues, townhome owners are also responsible for paying utilities, taxes, and mortgages. While these costs work just like a single-family home, the good news is they tend to cost residents less.

Luxury Amenities that may Cost More

While luxury amenities may draw buyers into a condo community, it is important to know that the more bells and whistles offered, the higher the price for residents.

Since townhome owners help indirectly fund these luxury features through their HOA fees, as these amenities increase, so do those member dues.

While the list of potential community amenities is vast, popular bonus features include community pools, spas, gyms, outdoor parks, security systems, and gate security guards.

While townhome fees may not be any buyer’s favorite topic, it is important to understand that they enable residents to enjoy the convenient, low maintenance living that so many townhome communities offer.

Now that you can feel more confident understanding townhome fees, begin the search for your perfect home today!

While condominiums are more affordable than single-family homes, potential condo owners need to be aware of the average condo fees that come with the investment.

What the Average Condo Fees Are

Condo owners can expect to pay a few different fees with their purchase, including move-in costs, property tax, and HOA expenses.

When purchasing a condo, buyers may pay between $100 to $400 in move-in fees, and that price can quickly increase if the unit is intended to be leased out.

Property taxes can vary drastically, even for similarly priced condo units, depending on the location and neighborhood. However, these taxes generally remain less expensive than single-family homes due to less space per taxpayer.

Because condominiums offer residents shared common areas, building maintenance, and landscaping, residents are required to pay monthly or annual HOA dues. These additional costs allow the homeowner’s association to fund, manage, and protect these shared spaces outside of the individual units.

Unfortunately, condominium HOA fees tend to be the priciest out there. These costs can run residents anywhere from$1,200 to $8,000 annually depending on what services the HOA covers.

This gap in average HOA fees is so significant because these fees depend on many variables, such as the community’s reputation, age, and location, as well as the amenities that the condominium offers.

What you Can Expect to Pay

When it comes to condo fees, the windy city is already on the higher end of the spectrum. A report from Trulia also reveals that HOA fees specifically are on the rise.

According to the same report, the older the condominium building, the higher the HOA fees. These fees also increase when there are more units within the building.

HOA fees for condo buildings with 20 to 29 run on-average $160 higher per month more than single-family detached homes within a development. Buildings with 50 or more units have monthly HOA fees that are $330 higher than the same single-family homes.

The report also estimates that condo owners can expect to pay an extra $30 per month for each additional bedroom that the unit offers.

A Chicago condo owner can expect to pay an average of $342 in HOA fees monthly. This number is on the higher end of the national averages, but not the highest.

Expect to Pay More with Luxury Amenities

While standard amenities, such as a pool and fitness center, typically run residents around $300 to $500 per month, additional luxury amenities can quickly skyrocket HOA fees.

These upgraded amenities may include outdoor dog facilities, room-service, maid-service, spas, concierge, valet, and 24-hour security. When condominiums provide these extra amenities, monthly HOA fees can easily run residents over $1,000 per month.

When condo shopping it is very important to research the community amenities and the additional costs associated with these benefits.

To successfully budget for your future home, don’t forget to take into consideration all of the condo fees that may come with your purchase.

Condo communities offer residents a convenient and comfortable lifestyle.

While condos may not provide the same amount of space as single-family homes, they do offer less maintenance, extra amenities, and opportunities for a close-knit community all at a more reasonable cost.

How Condo Communities Typically Function

By definition, a condo community consists of a single building or multiple buildings with separate units owned independently. Condominiums are often adjacent to other units, and unlike townhomes, may also be situated above or below the other units, particularly if the building is a high-rise.

Although each condominium unit is independently owned, and frequently leased out, the entire condominium is managed by the community’s homeowners’ association.

Every homeowner is a member of HOA and pays annual or monthly dues which help fund community amenities, such as a pool and gym, and provide services including garbage removal and building maintenance.

Do you Have to Attend Homeowners’ Association Meetings?

Condo community HOA meetings may take place on a regular or annual basis.

As members and critical voices of the condominium’s HOA, residents are strongly encouraged to attend these meetings.

While meetings generally are not mandatory, they provide a forum for critical discussion regarding homeowner issues and opportunities to make changes. Decisions made during these meetings also impact members property values, therefore remain very important for any townhome owner.

Topics of discussion at HOA meetings may include altering the budget, electing a new board of directors, or voting on amendments to the HOAs governing documents.

Attending HOA meetings additionally provides residents a terrific opportunity to connect with other neighbors and enhance the sense of community.

How you Share Common Areas

If you live in a condominium, it is not uncommon for neighbors to cross paths due to a large amount of shared common space.

While common areas vary depending on the specific condo community, many residents share hallways, stairs, lobbies, elevators, parking lots, and building entries and exits.

It is not uncommon for condos to provide shared parking lots or garages, but reserving a spot often comes at an additional cost to residents. Condo owners can learn more about parking regulations through their HOA’s governing documents.

Additional common space for condo neighborhoods to share may include amenities such as a community park, lounge, pool, gym or tennis court. These amenities are optional for residents to take advantage of, however, each unit owner should be aware that he or she is helping to fund these amenities through their HOA dues.

Utilizing these common areas provide residents with great activities and opportunities to socialize and get to know neighbors in the community,

Take advantage of all of the convenience condo communities offer and find your perfect home today!

If you find yourself drawn to the amenities and convenience of a condo, but not prepared to sacrifice your own yard space, then a townhome may be the perfect property for you.

Here is everything you need to know about living in a townhome community!

How Townhomes Typically Function

A townhome community is made up of conjoined single-family homes, meaning that each unit may have multiple floors and share one or more walls with the neighboring unit(s). Each unit is individually owned and may be leased out.

When a person purchases a townhome, they are gaining title to their individual unit as well as the yard or space outside of the unit. This space may also include a balcony or porch.

While this outdoor space is under the resident’s ownership, the community’s homeowners’ association take care of the maintenance. This means that townhome owners can enjoy the perfectly kept yard year round, without even having to touch a lawnmower.

Although townhome owners do not have to worry about the physical yard work, their checkbooks indirectly fund this maintenance through their annual or monthly HOA fees.

HOA also funds additional amenities and services that the neighborhood provides, such as community surveillance cameras and garbage removal.

How Easy it is to Meet New People

Meeting new people in a townhome community rarely poses a challenge for residents.

Close proximity to neighbors opens the door for social opportunities and an extra sense of security in the community.

It is easy to get to know the people around you and keep an eye out for each other’s property and suspicious activity, ensuring a better night’s rest and worry-free trips away from home.

Townhome communities also boast lower turnover rates than condominiums, meaning that residents often stay put for more extended periods of time which also promotes better neighbor relations.

How You Share the Common Areas

Typically townhome residents share at least one wall the neighboring unit and sometimes a driveway as well.

While the idea of sharing a wall with neighbors may spark hesitation, rest assured that party walls divide the townhome units. These unique walls are built using quality soundproofing and special materials to help block out sound from neighboring units.

Neighbors in townhome communities often have the opportunity to share common spaces and amenities. Depending on the specific neighborhood, these may include pools, parks, gyms, and recreation rooms for hosting the perfect party.

While all townhome residents have access to these common areas through their HOA fees, these additional amenities are all optional for residents to enjoy.

Experience the convenience and community that a townhome has to offer and find your perfect home today!

When it comes to making the big decision between a condominium and townhome, be sure to first familiarize yourself with the unique advantages each type of property offers.

Here is everything you need to know about condos vs. townhouse to help you choose the perfect home to suit your needs!

What is a Townhome Community Like?

A townhome community is made up of conjoined single-family homes that are owned by individual tenants, meaning that each unit may have multiple floors and share one or more walls with the neighboring unit(s).

Townhomes provide an excellent option for someone looking for the perks of a single-family home at a more affordable cost with less maintenance. This means getting to enjoy that perfectly kept front-yard, without having to purchase a lawnmower.

Townhome residents enjoy low-maintenance living with help from the community’s homeowners’ association. HOAs set the rules for the community and maintain responsibility for some or all of the exterior and shared property. Each resident is a member of its HOA, which requires monthly or annual fees to help fund maintenance activities.

While townhome owners own the land that their property sits on, the HOA manages the external maintenance, hence the hassle-free yards.

Due to the proximity of neighbors, townhome residents often feel an extra sense of security in their community. It is easy to get to know the people around you and keep an eye out for each other’s property and suspicious activity, ensuring a better night’s rest and worry-free trips away from home.

Lower turnover rates in townhome communities mean that residents often stay put for longer periods of time than those living in condos, which also promotes better neighbor relations.

If you are looking to socialize with neighbors, townhome communities offer great opportunities through shared living spaces. These areas may include pools, parks, gyms, and recreation rooms for hosting the perfect party.

Despite social opportunities and nearness to neighbors, townhome communities still provide peace and quiet. Thanks to party walls, which divide buildings into separate units, using quality soundproofing and building materials, residents do not have to worry about sound transferring from adjacent homes.

What is a Condo Community Like?

A condo community consists of a single building or multiple buildings with separate units owned independently. Condominiums are often adjacent to other units, and unlike townhomes, may also be situated above or below the other units, particularly if the building is a high-rise.

Due to an large amount of shared common space in condominiums, it is not uncommon for neighbors to cross paths. While the common areas vary depending on the specific condo community, many condo residents share hallways, stairs, lobbies, elevators, parking lots, and common building entries and exits.

Similarly to townhomes, condos are managed by homeowners’ association.

As members and critical voices of the condominium’s HOA, residents are strongly encouraged to attend HOA meetings, which may take place on a regular or annual basis.

While these meetings generally aren’t mandatory, they provide a forum for critical discussion regarding pressing homeowner issues and opportunities to make changes. Changes may include topics such as altering the budget or electing a new board of directors.

Attending HOA meetings also provides a terrific opportunity for residents to better connect with other neighbors and enhance the sense of community.

What Do Average Condo Fees Cost?

Before choosing the perfect place to call home, make sure to conduct research regarding extra condominium fees.

Because condos offer residents shared common areas, building maintenance, and landscaping, condo fees are a given. These additional costs allow HOAs to fund, manage, and protect these shared spaces outside of the individual units.

Unfortunately, condominium HOA fees tend to be the priciest out there. These costs can run residents anywhere from $1,200 to $8,000 annually depending on what services the HOA covers.

This gap in average HOA fees is so significant because these fees depend on many variables, such as the community’s reputation, age, and location, as well as the amenities that the condominium offers.

While standard amenities, such as a pool and fitness center, typically run residents around $300 to $500 per month, additional luxury amenities can quickly skyrocket HOA fees.

These upgraded amenities may include outdoor dog facilities, room-service, maid-service, spas, concierge, valet, and 24-hour security. When condominiums provide these extra amenities, monthly HOA fees can easily run residents over $1,000 per month.

What Are Townhome Fees Like?

If you’re leaning toward a townhome community, HOA fees are still mandatory, but they come at a much lower cost.

Townhome fees are less expensive because the HOA is less involved in property maintenance.

While townhome owners’ monthly expenses are much lower than condo owners, maintenance work can require much higher out of pocket expenses because unit owners are solely responsible for the indoor and outdoor space of their unit.

The HOA fees condo residents pay ensure common space maintenance and upkeep, which may include activities like pest control of common areas and garbage removal.

Some townhome communities also provide luxury amenities, resulting in higher fees for residents. Popular bonus amenities include community pools, spas, gyms, security systems, and gate security guards.

Condo vs. Townhome Insurance — What’s the Difference?

While townhome and condo insurance both tend to run less expensive than single-family home insurance, there are important differences between the two.

The distinction comes down to each property’s legal ownership.

While townhome owners generally possess the land beneath their units, condominium owners only claim ownership of their units.  The land is collectively owned by all of the other condo owners in the complex.

Condo associations take some of the insurance burden off the owners by providing partial coverage, but individual condo owners still need additional protection through individual homeowners insurance policies.

Before determining what coverage a condo owner needs, it is critical to first examine the condo association’s policy found in the HOA’s declaration pages. Often condominium HOA insurance policies will cover the common areas and most of the building’s exterior:  However, individual owners are responsible for the inside of their unit.

Individual condo insurance, known as HO-6 insurance, covers the interior of each condo unit, the condo owners’ possessions, and provides the owner with a liability policy.

The average cost of a homeowner’s insurance policy for an Illinois condo runs approximately $365 per month, which is relatively low compared to the rest of the country.

Townhome insurance, known as HO-3,  generally works the same as insuring a detached single-family home. The insurance policy covers the unit as well as any outdoor space the owner has title to.

Townhome insurance coverage is more expansive than condo insurance. This is partly due to the fact that owning a townhome comes with more risk due to increased property possession and liability.

Planning Your Investment: Condo vs. Townhome Resale Value

Purchasing a home is a big decision, and it is always beneficial to think ahead. Considering condo vs. townhome resale value is essential to ensure long-term potential value of your property.

If you are leaning towards a condominium investment, the good news is that these properties typically sell much quicker than single-family homes, even in a down-market, due to lower costs.

In order to ensure higher resale values, buyers need to carefully select condo units. It is important to take into consideration factors such as resale history of other units in the building, current property values, and the local real estate market.

When condo owners are ready to resell, it is also critical to get up to speed on the condo association’s rules and guidelines as to what can be done with the units. Associations may place limits on who the condo may be sold to, buyer pre-approval and where you place for-sale signs.

In order to set your home apart from the other surrounding condo units and communities, it is critical to highlight your condo’s assets and neighborhood amenities. Determining a competitive selling point is also crucial to the success of your resale.

The process of reselling a townhome closely mirrors that of a condo. However, sellers have found that townhomes tend to have lower resale values.

Not only can it be more difficult to fill a townhome community, but it is often harder to obtain financing for townhomes. This is due to the increased liability of owning both the land and the physical structure.

On the positive side, determining a fair selling price of a townhome is fairly easy because of the many similar properties in the community.

When listing a townhome, it is also critical to highlight the amenities of the community and the HOA dues that the buyer will encounter.

Finding a worthwhile investment, whether that involves the purchase of a condo or townhome, involves finding a desirable location and community. Here are a couple of questions you may want to ponder to figure out if you’ve found an ideal area for such an investment:

• Is the property in an area where properties are in demand, such as near a college or university?
• Is the property in an area that is getting less popular or more popular?
• Could a major employer in the area close down and cause rental/purchase demand to decline?
• Could a new condo development be built nearby, requiring expensive improvements to compete?

Now that you have more information regarding condos vs. townhouses, it may be time to make that big decision. While both options offer homeowners unique benefits, it is all about finding the property that best fits you!

HOA security should be a high and ongoing priority. It is crucial to maximize residents’ safety by reducing threats and preventing crime.

Assessing Current Condo Security

Condominiums have unique sets of needs when it comes to safety. Not only are there people constantly coming and going, due to the high number of occupants, but there is also a higher number of entry points and common areas. Therefore, it is critical that HOAs deliver effective security strategies.

Before determining how security in your community can be improved, the HOA needs to assess the current level of protection.

To gain insight into security improvement needs, an HOA can conduct a comprehensive security assessment, independently or with the help of a professional consultant, depending on budget.

If your HOA choses to hire out a professional, the security assessment for condominiums may run anywhere between $1,500 and $5,000 depending on the services provided.

Regardless of the assessment you conduct, every evaluation should provide an HOA with these essential items:

1. The vulnerabilities and exposures on the property which either have led or can lead to security issues.
2. Effective solutions available to an HOA, as well as a planned course of action and anticipated costs.
3. A sense of confidence for the board and association management in their means to achieve a safer community.

Condominium Security Benefits

Following the assessment, it is up to the HOA to implement security measures to improve condo security and make the community a safer place to live.

While there are numerous security measures an HOA can take, here are a few common precautions:

• Door Staff help restrict access into the community, deterring intruders and helping residents feel more secure.

• Front Door Video Systems enable constant surveillance of the property and capture footage of suspicious or criminal activity.

• Key Access Systems provide residents with a security card, rather than a key, that can be swiped to enter the building or common areas. This technology provides more control over who enters the condo maximizing security.

• Attached Parking helps prevent auto theft and vandalism while allowing residents easy and safer access to their vehicles.

• Landscaping for Security can involve reducing hiding places and keeping the area well maintained.
• Neighborhood Watch promotes community effort to patrol the community together and report any suspicious activity to reduce crime.

Getting an HOA on Board

If you’re eager to improve your HOA security, don’t be afraid to start a conversation. Present the idea of a security assessment to your HOA or discuss possible safety improvements.

While an HOA may need to check the budget or require permission for some of these improvements, it is likely that they will be eager to help create a safer environment and happier residents.

Don’t underestimate the role you can play in improving HOA security to keep you and your community safe!

Dealing with parking in a large city can pose a huge nightmare for any driver. From hunting down an open spot to shoveling the car out during the winter, drivers deal with plenty of challenges.

To alleviate this parking headache and ensure extra security for you and your vehicle, consider reserved or private condo parking.

Reserved or Private Parking is Safer

Not only is private parking more convenient, but it is also a safer alternative to street or public parking lots.

Since HOAs regulate condominium parking lots and garages, security cameras are often in use as a safety measure. These cameras can deter auto theft and vandalism, as well as record any crime that takes place on the premise.

Private parking facilities also reduce the amount of traffic and pedestrians that the driver has to worry about when parking, and thus minimizing the chance of an unwanted accident or collision.

Does Private Parking Cost More?

Private condo parking is considered an amenity, so naturally, this desirable feature comes at a price. However, if safety and convenience are a priority, it may be a worthwhile investment.

The cost for private parking depends largely on the value of the condominium and how the space is rented or sold.

Frequently, condominium parking spaces are “deeded”, meaning that the homeowner also owns the parking spot and a deed (record of ownership) is filed with the county.

If this is the case, then the parking spot can be sold independently of the condo, meaning the buyer must pay additional taxes and building assessments on the space.

Pricing also depends on the nature of the parking. Condominiums may offer assigned spaces in parking lots; first-come, first-serve parking lots; private garages; and communal garages. Some are more desirable than others.

Based on a YoChicago survey, River North condominium private parking spaces start anywhere from $35,000 to $55,000.

If you are still leaning towards street parking, keep in mind that costs may still add up with this alternative. Many streets require permits and are quick to tow or hand out hefty tickets during random street cleanings or events. Park at your own risk.

How to Bring Parking up to HOA

If you’re interested in reserving or purchasing a parking spot at your condominium, you will have to reach out to your Homeowner’s Association.

Since parking proves to be a common challenge when living in an HOA community, make sure to get a good understanding of your condo’s parking policy to avoid any confusion.

The governing documents for HOA-controlled parking spaces are contained in Covenants, Conditions and Restrictions (CC&Rs). These documents provide insight into the purchase process and outline the ownership or reservation of a parking spot.

Make the parking process easier and safer by reserving a private condo parking space today!

Wait — What’s a Comp?

To understand that, and how appraisers choose comps, we first need to review the home financing process. When you’re the one selling a condo, your involvement in these steps will be minimal. Your buyer will (should) have been pre-approved for financing, thereby demonstrating his or her ability to buy the home and repay a loan. After you and the buyer come to terms on price, timeline, and any concessions, a purchase contract will be executed and provided to the buyer’s lender. From there, it’s up to them to navigate the process and get final approval on the loan as well as the clear to close.

But toward the end of that process, the buyer and his or her lender will order an appraisal (as well as a home inspection) to objectively but informedly determine the value of the home. As the seller, you most likely won’t see the appraisal on your condo or learn its appraised value. If the appraisal comes in under the agreed sale price, you would see it because you’d be able to challenge the appraisal or accept the new value.

How does the appraiser determine the value of your condo? Well, that’s where comps come in. A comp is an industry term for a comparable home sale. The appraiser will look at your home as well as the recent sales of homes similar to yours in the area. But how does the appraiser choose comps? Is there anything different for condos versus single-family homes?

A Quick Comps for Condos 101

When it comes to condos, appraisers have to consider more than just similar units within your building. The appraiser must analyze and use condos from both the surrounding neighborhood as well as your condo’s building. One must be within the same project or structure, whereas one can come from outside it. A third must be chosen, typically within the same building as your condo since it will resemble your unit’s design, layout, materials, etc.

The comps’ characteristics will be evaluated along with its sale price. Things the appraiser will look at include the number of bedrooms and bathrooms, the square footage or gross living area, and the style of the home. The appraiser will draft up a report detailing their findings as well as the comps. The buyer’s lender will then use this appraisal to ensure they’re not lending more money than the home is worth. Which brings us to the final point.

How to Challenge a Low Appraisal

Remember, as the seller, you won’t get access to the appraisal unless you request it. But how would you know to request it since you typically don’t get the appraisal? If the loan is declined, or if the buyer informs you they’re backing out, then you’ll know something is up. Request the appraisal via the buyer’s agent and review it in-depth. Appraisers are humans like everyone else, and mistakes do happen that result in mistakenly low-balled figures.

If there are mistakes, or if the appraiser didn’t take into consideration any improvements you made to your condo, make sure that information gets into the right hands. Notify your agent, the appraiser (if you can), and attempt to get a new or adjusted appraisal. Just be prepared that the buyer, by this point, may have already backed out, or their lender may simply not accept a separate appraisal. It’s a gamble, but if you have an opportunity with a buyer, it’s worth pursuing.

Ready to sell your condo with confidence? Choose Luxury Living Chicago Realty.