THE GIST OF THIS POST: The Tacoma condo market is different than many other cities. It is very important that you work with a real estate agent who is a condo specialist who works IN TACOMA who knows the quirks, history, and financing options of all the buildings so you don’t accidentally buy a lemon or overpay.
For condo buying newbs
If you’ve never bought a condo before PLEASE take the time to educate yourself about how buying a condo is different than buying a house. In some ways condo ownership is much easier than owning a home. It’s true that you normally don’t have to take care of all of the systems like the roof, siding, or yard work. That said you are still part owner of all those systems and you will be collectively maintaining them with others. In Tacoma in particular we have some really cool, funky, interesting condo buildings that are a pleasure to live in- but the maintenance of those buildings (especially the historic ones!) requires time, attention, and money from the owners of the units in those buildings.
For experienced condo owners
If you’ve bought and sold condos in other cities you hopefully have some idea of how homeowners dues and associations work and are probably feeling a bit more confident about the process. The difference between other cities (especially big cities!) and Tacoma is that while in recent decades we have had new condos built- many of the the condo buildings in Tacoma are CONVERSIONS. This means that before they were homes they were factories, apartments, an old fire station, or maybe even a hospital! While this makes for some awesome, funky, cool, apartments- it can impact the financing, maintenance, and resale value of those buildings. If you’re used to cookie cutter high rise condo life, condo ownership in Tacoma is going to be a change of pace!
Lesson 1. The difference between a condo and a townhouse in Tacoma
You can’t usually tell if a property is a condo or a townhouse just by looking at it. That’s because whether or not a property is a condo or a townhouse is determined by how it was deeded when it was built or converted to condos. The seller’s real estate agent SHOULD know the difference- but it’s something that you and your buyer’s agent will want to verify since some agents who aren’t condo specialists don’t know this and list it wrong. It’s essential when you are pricing the property and figuring out what to offer that you know the difference because whether or it is a condo or a townhouse (where you own the land) impacts the value, the financing, and how easy it is to rent and resell!
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Lesson 2: Financing is EVERYTHING
People are often surprised to see the wide variation in pricing of condos. The reason for this is financing and resale. Basically, the more types of loans buyers can use to finance a building means the more buyers can offer on the building. This increased demand increases the price of the condo. So if you can only buy a condo with cash (as is the case with some buildings in Tacoma) it’s going to be a smaller buyer pool (and a lower price) than a building where many kinds of financing (FHA, VA, Conventional) are allowed. If you’re selling a condo in Tacoma getting your condo approved for as many types of financing as possible will help you sell your condo for more. If you’re planning to sell your condo in the future it’s wise to reach out to a real estate agent in Tacoma who specializes in condos early in your process to advise you on what you might be able to do to to get more for your condo.
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Lesson 3: Condo buyers have an inspection process, too!
Many people think if they’re buying a condo they don’t need a home inspection. This is not the case. When you buy a condo (and ESPECIALLY if you buy a townhouse) you want someone to look at the systems and parts of the unit that you are responsible for to make sure they’ve been maintained. If something is broken or not working correctly or nearing the end of its useful life the inspector can let you know and you can negotiate with the seller about it. If you’re buying a townhouse you may be personally responsible for painting the exterior and replacing the roof when the time comes- so you will want to know how long it will be till those things need to happen. Again, working with a real estate agent who specializes in condos is a huge advantage here.
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Hopefully these videos have been helpful as you begin your process of buying a condo in Tacoma. If you have questions about buying a condo in Tacoma please feel free to contact me, I’d love to help connect you with a condo specialist in the neighborhood or building you’re looking at!
Check out video tours I’ve done of some cool condo buildings in Tacoma:
Dorothy Condominiums – an affordable brick condo building in Tacoma’s Stadium District
Esplanade Condominiums – a high rise condo on the Thea Foss Waterway in Downtown Tacoma
