I list condos and lofts in Baker and along Broadway, and I help buyers across Denver’s condo neighborhoods. The mistake I see most often: buyers fall for a unit and forget they are also buying a share of a building and a small government called an HOA. Here’s how to do it right.
Read the HOA documents — all of them
The budget and reserve study tell you whether the building is saving enough for roofs, elevators, boilers and parking structures. Meeting minutes tell you what owners are arguing about. Litigation history and special assessments tell you what’s gone wrong. Rules tell you whether you can rent, have a dog, or run a business. I review these with every buyer before the deadline to walk away.
Understand the reserve situation
A building with a healthy reserve fund handles a new roof without a special assessment. A building with a thin one sends every owner a bill. Ask how the reserves compare to the reserve study’s recommendation.
Ask about construction defects and litigation
Denver’s condo market has a history of construction-defect litigation, especially in buildings from the 2000s. Litigation can affect financing, resale and assessments. Ask directly.
Check rental rules
If you might rent the unit someday — or want a building of owner-occupants — the rental cap and lease-term rules matter. Short-term rental rules matter for both.
Financing
Some condo buildings are not eligible for conventional or FHA financing because of owner-occupancy ratios, litigation or reserves. Confirm the building’s warrantability with your lender early.
Parking, storage and the unit itself
Deeded vs. assigned vs. unassigned parking; storage; the age of windows, in-unit systems and appliances; noise from neighbors and street; light and orientation. Walk the building’s hallways and garage, not just the unit.
Insurance
The HOA’s master policy covers the structure; you need an HO-6 policy for your unit and contents. Ask what the master policy’s deductible is and whether it’s passed to owners.
Resale
The same items that protect you now protect your buyer later. Well-run buildings in walkable locations hold value; troubled buildings don’t, regardless of how nice the unit is.
Looking in Baker, LoHi, Cheesman, Cherry Creek or the Golden Triangle? Start with the Denver neighborhood guides and then let’s look at buildings together.