Scoring the Best Nest
Real estate pro gives inside tips on buying condos, town houses

By Lynn Thorne
Express
Wednesday, December 13, 2006 9:15 AM

You're about to put a down payment on a new place to live. But what's the right choice? Condo? Town house? Single-family home? Vintage Airstream? Houseboat?

Choose your new property wisely, and you'll be living in your dream home. Buy a real estate lemon, and you could wind up making lemonade in a place you hate.

Real estate expert Robert Irwin has been advising wannabe property owners for 35 years as an agent and as the author of the popular "Tips and Traps" book series. The latest installment, the second edition of "Tips and Traps When Buying a Condo, Co-Op or Townhouse" (McGraw-Hill, 2006), went on sale Dec. 1.

In the book, Irwin suggests sharing ownership of property is a bit like marrying into a family: A lot of other baggage comes with your choice to live in that haute Logan Circle loft condo or that stylish town house enclave in Bethesda.

Here, Lynn Thorne checks in with Irwin, getting his opinions on the joys and pitfalls of the shared-ownership world.

Is a condo a safe investment at this point?

A lot of people prefer it as an investment because of the amenities, the most important being the maintenance-free aspect. That's particularly good for those who are busy professionals or retirees who like to travel.

The newer models tend to be larger. They used to be 1,400 to 1,500 square feet. But a lot of new condominiums are 2,000 square feet or more. [They offer] upgrades like granite countertops and hardwood floors, and other features like tennis and golf [facilities], pools, spas -- all of which are maintained by someone else. All of that is terrific from a resale point of view.

With the market changes, some people may be considering renting their property out instead of selling it. Any advice for them?

Renting is more difficult with a condo than a house for a lot of reasons. There are restrictions about "For Rent" signs. Conflicts can occur when you have a tenant, because they're required to maintain the unit and go along with the rules and regulations of the association. If you tell your tenant to be quiet after 10 p.m. and they don't, the HOA [home owner's association] comes after you as the owner, not the tenant. It's just more difficult to handle a rental in a condo.

You've lived in several shared-ownership buildings and served on their boards and such. From your personal experience, what's the most common trap?

The biggest problems I've seen are conflicts between the HOA and members -- and it's usually because of different expectations. A member may want to do something, and there may be a rule against it. Or the HOA may pass a rule [that prohibits an owner from doing something] and they go head-to-head. It gets pretty contentious and heated. It can be anything -- a parking place or the color of the paint. I've seen a huge argument over a port-a-potty on a golf course. These things tend to be trivial in nature, but because of the personalities involved, they take on a huge stakes.

It's sometimes difficult to get people to run for the board of directors of their development. Having served on several over the years, what would you say are the reasons to get involved?

It's self-defense. When you buy into a HOA, you never dream of getting on the board. [Everyone] figures someone else will do it. But once you've joined, you find things happening that you can't stand. You see something you want changed, and you know that only happens if you get on the board. It's part of the shared-ownership lifestyle.

You say one trap is to beware of the development that is situated in an "apartment city," where the whole area is nothing but shared-unit developments and apartment buildings. You've just described Washington, D.C. How would you advise people who want to work, play and live in the same location?

The warning is a matter of property values. When you have a lot of apartments, you increase the density. A condo building is dense anyway, [but when you] put that in with single-family homes, it balances it out. When you [have too many condos in one area], the density is magnified [and that] adversely affects the property values.

In an urban setting like D.C., that wouldn't make as much difference, because there's such a great housing need to begin with.

You mention in your book that, for the best real estate value, you should have a couple of blocks between you and any commercial developments or shopping centers. Do you disagree with the concept of planned developments?

If we're taking about a gas station or strip mall, that's true, but some of the best recent developments are these mixed-use developments with housing, shopping, restaurants and offices. They are desirable. They've soared in value.

The density argument has to do with how many people live there. Density problems lead to things like a lot of noise at night -- that has to do with too many people living in one area and not coming and going. [Planned developments] don't have that problem, because people are leaving when offices or restaurants close.

What are the advantages of buying a town house instead of a condo?

There's an architectural difference, not a legal one. With a townhouse, you own the land and there's no one underneath or above you. You may have a loft. You have lower density. There's often a yard. They tend to [offer] a nicer kind of lifestyle. Generally speaking, if you have a choice, the town house is the better buy [when it comes to] price appreciation and resale potential.

What do you hope people get from the book?

An understanding of what's involved in shared ownership. Many are under the illusion that condos or town houses are a cheaper form of buying a house. In a square-foot comparison, they may actually be more expensive. But shared ownership gives you responsibilities. I want people to understand that what you're getting is a different lifestyle.

This article first ran in Express on November 16, 2006.