If you’re considering buying a condo in Houston, make sure that you’re aware of the monthly homeowner association (HOA) fees, their true costs, the benefits you get from being a resident and the success themes quality buildings share.

It’s also important to note that HOA fees have an impact on financing, as banks will require you to pay both HOA fees and taxes on time (they don’t like 3rd party senior liens). Taxing authorities and homeowners associations can place a lien on your condo unit if you don’t pay their bills.

As such, high HOA fees can become an issue once you resell. Historically, older buildings (from the 1960s to 1980s) have highers fees, mostly due to several amenities, and limited energy efficiency. Some of these buildings also have residents share utilities like electricity.

Below, we’re presented HOA fee trends by building age, Houston neighborhood, and those high-rises who have a pool versus those that don’t.

There are three critical factors to consider when buying a condo in Houston: the building’s resale history, the building’s median sale price, and the building’s unique personality and atmosphere.

It’s also important to take note of the building’s 10-year and 5-year sales performance, as it’s important to understand how a particular building performed during a downturn.

With over 100 residential buildings from which to choose, buyers should be wary about where to place their investments. Not all Houston condos have performed well over the years.

Some buildings are fantastic, well-managed, have great staff, have solid reserve accounts and consistent demand.

By contrast, some buildings suffer from high HOA fees (despite limited amenities), inconsistent management, and have a spotty appreciation track record.

Below, you’ll see the five and ten year median sale price appreciation (or depreciation) rates from many of Houston’s luxury buildings.

Condos vs Townhomes or Single-Family Homes

One of the largest differences between Houston condos and Houston townhomes for sale or Houston Single Family Homes is the underlying asset that you’re actually purchasing.

When you buy a townhome or a single family home, you own the land (from the center of the earth to infinity above) plus the structure.

When you buy a condo, you’re buying airspace and have shared ownership of common use areas.

As such the Texas Real Estate Commission (TREC) promulgates a separate contract for condos because they are a different entity.

It’s important to use a mortgage broker and Realtor who is familiar with condo transactions to help you navigate the buildings, association rules and restrictions, potential deferred maintenance issues at that location, historical trends in that building, resale potential, unique financing requirements and closing process for condos.

Primary Benefits of Living in a Houston Condo

• Lock-and-leave lifestyle. The lock-and-leave lifestyle is becoming quite popular – as it usually entails no yard work, roof repair, building or grounds maintenance.
• Easy accessibility. Houston condos are typically located within the city’s hottest neighborhoods, which means condo residents are usually mere steps away from bustling dining, entertainment, and retail centers, business districts, and main roads and freeways.
• Security. Many residential buildings in Houston offer 24-hour staff and security, controlled entrances, secure parking, and security cameras.
• Building amenities. Building amenities vary, but many luxury high-rises offer tennis courts, swimming pools, saunas, theater rooms, fitness centers, rooftop decks, and more.
• Full-service amenities. Houston’s most expensive condos can offer white-glove service: concierge, porter, and valet services; trash and dry cleaning pick-up, shuttle services, and others.
• Like-minded neighbors. Living in a Houston high-rise offers a great way to meet like-minded people. Many condos have “resident committees” and social groups that arrange events and gatherings.

Primary Drawbacks (compared to Houston Townhomes or Houston Single Family Homes)

• Monthly maintenance fees. Staff and amenities are great but come with a fee. Monthly maintenance fees pay for shared expenses. Be sure to weigh costs vs the benefits before you buy a condo and be wary of certain buildings that have large deferred maintenance issues.
• Neighbors. Neighbors can turn into great friends. There are however, some people who aren’t good neighbors. Look for condos with good soundproofing (and/or limited units per floor).
• Converted units. Be wary of buildings that were originally built as apartments as the quality of construction can be inferior.
• Associations. Residents elect a Board of Directors to manage the building’s business and to establish and enforce building policies. Condo residents are part of a community, subject to community guidelines and restrictions. Knowing the guidelines before buying is imperative (especially if you have pets).

A great Houston condo Realtor can help guide you with reviewing maintenance fees and building policies.

The HoustonProperties.com Team has a well-defined structure based on the individual strengths of each member.

We find a team approach as the most effective way to sell homes. We have dedicated people doing staging, marketing, social media, open houses and showings. Each HoustonProperties member is a specialist in their role – which is why our homes sell faster and for more money than average.

The benefits of working with a team include:

• Ability to be in 2 or 3 places at one time: a member can handle showings, while another answer calls.
• Collective time and experience of members.
• Targeted advise and marketing of agent expert in your area.
• Competitive advantage by simply having more resources, ideas, and more perspectives.
• A “Checks and Balances” system. Selling and buying a home in Houston is an intensely complex process.
• More people addressing field calls and questions from buyers and agents to facilitate a faster successful sale.
• Efficient multi-tasking: One agent takes care of inspections and/or repair work, while another agent is focused on administrative details.
• Multiple marketing channels using members’ networks.
• Constant attention: guaranteed focus on your home and your transaction.
• Lower risk for mistakes. Multiple moving parts increase oversights. A team approach handles these “parts” separately.
• Flexibility in negotiation and marketing.
• Better management of document flow.
• Increased foot traffic through more timely and effective showing schedule coordination.
• Increased Sphere of Influence and exposure to more potential buyers.