You want to downsize from your large home to a retirement condo community. But you have your concerns.
You like your large space and privacy. When you purchase a retirement condo there will be tradeoffs. In a retirement community you won't have yard maintenance but you will have close neighbors. You won't have to shovel your own snow but you may have a smaller space to live in.(Check to make sure these amenities are available.)
Your concern is about what it will be like and will you like it.
An active adult retirement condo community for over age 55 is not really a retirement community. The seniors are active and most still have jobs.
They aren't geared for families since children have grown and moved out. They do have some regulations that allow your college child to come home for the summer or grandkids to visit for a certain number of days in the year. Every community has different rules about visitors so check with the individual community. In an over-55 retirement condo community, regulations do not allow children under 18 to live there.But always check with the condominium community for any exceptions. Pets are usually allowed but there are rules and restrictions.
You will feel like you're on vacation all the time when the kids are grown and move out. You will have more leisure time in a retirement condo community and you will have opportunities to easily make new friends.
You Will Sense the Presence of People Around You.
Whether you are a baby boomer or an aging senior, having neighbors close by can be a positive factor. You will have more social contacts which studies show may increase longevity. If you need help in an emergency, its good to have people close at hand. You may feel the presence of people or hear steps from neighbors above you. Condominium life is more like a close community. People are friendly.
You may live in a smaller space in a retirement condo community. However, that can be an advantage because you will also feel a new sense of freedom. You will find you have more leisure time to travel and for hobbies. You aren't spending all day taking care of a house in a retirement condo community.
You have previously been an owner of a large home and felt a lot of privacy and sense of ownership of the land under you. But think about this: You also had less security. You never knew when a less than desirable neighbor may move next door or you may have to put up with the neighbor's wild teenage sons. You didn't have a security guard looking out for your interests 24 hours a day. Your life will be somewhat regulated in a retirement condo community because there will be rules and restrictions. But these will also see to it that your property values are protected by not allowing someone to paint their home purple for instance or being loud after certain hours.
The following is a general definition of a condominium for information only. For legal advice always seek the services of a competent professional. A condominium is the ownership of the airspace of a unit in a multiunit building and an interest in the common elements owned with other condo owners.
There are things you should take the time to thoroughly check before buying into a retirement condo community. The following are good tips, so please take the time to read them:
- Review the retirement condo community property to see that it is well maintained
- Review the retirement condo community Budget to see if there are reserves to cover such things as snow shoveling.
- Is the budget well managed.. always over budget or under budget. A well managed community should not be constantly over budgeted and the reserve budget should be strong.
- Check if it is a good value for the long term. How have units been selling. Do they sell quickly. Are the prices of homes increasing every year.
- What amenities are there in your retirement condo community and will you use those amenities since you are paying for them. If you don't golf or play tennis, will you pay less homeowners fees if you purchase in a community without these features. Of course, the amenities may help with resale values overall so check that out also.
- Homeowner fees in a new community may be lower than what they will be when the builder finishes and leaves and the community takes over later. Expect the costs may go up when the community board takes control. So what the salesperson in a new community tells you may not be the actual fees when you move in.
- Are the Community fees low? In a resale community, if there is deferred maintenance, it may be because the community fees are low. If the fees have been low for a long while and the community then decides to perform some heavy maintenance, the fees could suddenly have a substantial increase.
- How much for utilities? Compare what you currently pay in your home for utilities and find out what you will expect to pay for utilities in your condominium to see if there are savings. For sound is there an air space between common walls and for energy saving how is the insulation.
- If there are amenities, make sure they are being paid for by the builder not the community. Make sure these amenities have been built before the builder leaves. Anything built after the builder leaves is paid for by the community. See what amenities are already there when you purchase. Don't just take what the builder says but do your own inspection.
- Read all documents thoroughly before signing final papers that are available such as by laws, association rules, etc.
- In a buyers market which we are currently in (check with your Realtor for your specific area), many things are negotiable. Incentives are common. Builders are anxious to get the homes sold. If you feel something would make your life easier, just negotiate for it and see what they say.
- Buyers Agents: You may wish to have a buyers agent represent your interests instead of the on-site salesperson. Find an agent who deals with over 55 condo communities and who can inform and protect you. When you first visit a condominium community, you don't have to register unless you want to. Take a look around if you like but give no one your name if you intend to have a buyers agent represent you later. You are not required to register your name. Just say you want to look around and come back later with your agent. If you like the property and want to purchase there, you can come back with your buyers agent and register at the community with your agent so your agent will be paid. Builders usually have a reserve fund to pay buyers agents from but you must be registered with your agent and not with the sales agent on the property.
- Consider how much you will need to retire.
- Is there a good snow removal plan in effect.
- What type of "security" features are there. A gated bar going across the entrance really isn't very much security. A 24-hour manned entrance is best but even better is a manned entrance with a roving patrol.
- Is there shuttle service to shopping or is shopping nearby?
- In the event of a fire, can a firetruck get close to the building and easily access your unit? Check with your local fire department as some very tall buildings may be unreachable.
- Property Taxes are based on the price you pay for your home so your taxes may go up when moving. Check with the individual area regarding taxes.
- If you want changes from standard features, ask what they will cost you. Remember, all options are at extra cost to you.
- Think through everything to make sure you are getting what you want before you sign anything.
- Make sure any deposit you make is fully refundable. There are actually contracts that say your deposit is not refundable if you cancel. Read the fine print.
- Do not rely on marketing materials for square footage. Ask for the site documents from the builder.
- Views and lake frontage will increase the price of the unit. Notice how much more you will pay for these locations. Do you need a view?
- If your builder operates rental property see if you can get a good rate if your home will not be ready and you have already sold your current home.
- When you have your inspection walkthrough, take your time. If you find something unsatisfactory, say so because it might be a real hassle to get it fixed later after you move in. Check the insulation by feeling the walls and floors. Inspect everything one wall at a time and then the ceilings and floors, cabinetry, plumbing. Make sure everything works correctly especially before your warranty period ends.
These are some of the things to carefully consider when purchasing a condominium. This is not intended to be a complete list. Check with your Realtor and other professionals.
Enjoy your new home and your new sense of freedom, new friends, and active lifestyle at a 55+ condo community.
For condo listings,check our Area Listings. We usually mention if it is a condominium community.
TIP:
Your over 55 retirement condo community may be all condos or in a community of a mix of styles. Usually a retirement condo community will have a combination of property types including single-family, duplexes, and condominiums. The single-family homes can be more expensive than the smaller condos yet you will have access to most of the same amenities in these retirement condo communities as the more expensive single-family homes.
Please verify all information with your real estate professionals and local experts.
Back to Top
Return from Retirement Condo Community to Bestguide-Retirementcommunities Home
