Buying a condo in Chicago can be an attractive option, whether you’re purchasing your first home or looking for something with less exterior maintenance. But before falling in love with a unit, it’s important to understand the financial responsibilities that come with condo ownership.
What Do HOA Fees Actually Cover?
Monthly homeowners association (HOA) fees, often called assessments in Chicago, help pay for shared building expenses.
Depending on the property, these may include exterior maintenance, common-area insurance, landscaping, snow removal, water, building amenities, and contributions to reserve funds.
Fees vary significantly between Chicago condo buildings, so it’s important to understand what’s included rather than comparing monthly amounts alone.
What Is a Special Assessment?
A special assessment is an additional charge that a condo association may impose to cover expenses beyond its regular budget.
For example, a building might need a new roof, masonry repairs, or an elevator replacement. If the association doesn’t have sufficient reserves, owners may be responsible for contributing additional funds.
These expenses can be substantial, particularly in older Chicago condo buildings.
Review the Association’s Financial Health
Under Illinois condominium law, buyers can request important association documents, including financial information, reserve balances, and anticipated capital expenditures.
Before purchasing, review these materials with your real estate attorney and ask about upcoming repairs or planned assessments.
Make Sure the Building Fits Your Budget
The right condo is not necessarily the one with the lowest monthly assessment. A building with higher fees may include more services or maintain stronger reserves, while unusually low fees could mean that major expenses are being deferred.
Before making an offer, look at the full cost of ownership, including monthly assessments, property taxes, insurance, utilities, and any known or potential special assessments. Understanding the building’s finances can help you avoid surprises and choose a condo that fits your long-term budget.
At The O’Connor Group, we help Chicago condo buyers look beyond the listing price so they can purchase with greater confidence.
