10 Things To Consider When Buying A Condo
On Hilton Head Island

1.  Price

2.  POA Fee      Property Owners Association fee.  This is the fee placed on the whole community like Sea Pines, Shipyard, or Palmetto Dunes.  Everyone who owns property in the whole subdivision pays this.  It usually covers the community pool, tennis courts, bike paths, gate guard, road maintenance, and upkeep of the landscaping in the neighborhood. If it is on the beach, it would cover the beach club or any recreation area.  Everyone in the community pays it, even the people that just own a piece of property (cost is usually less for an undeveloped lot).

3.  Regime Fee   This is a fee paid by all the owners in the condominium association.  Each condominium complex has its own regime and regime manager.  Each condo association has its own regime fee, and it is typically a monthly fee paid to maintain the building, common areas, and insurance policies.  It is paid in addition to the yearly POA fee.  It can cover different things like grass mowing, window cleaning, upkeep of the grounds in the community, insurance, swimming pool, clubhouse, etc.  It is important to know what is covered in the regime fee, and if insurance is included or billed separately.

4.  Insurance    There are different kinds of insurance and they are paid differently.  There is homeowner insurance on the contents, building insurance, etc. If you purchase a condo, there is an insurance policy managed by the regime that is prorated among the owners, based on the size of your unit. This insurance is billed (assessed) by the regime manager. You will also need to purchase an HO-6 condo insurance policy for everything inside your unit. The regime's insurance policy covers the structure and grounds; the HO-6 policy would rebuild the interior of the unit in the event of a disaster, as it insures personal property, walls, floors, and ceiling, plus some liability.

5.  Flood Insurance    Very important on the island.  Price varies depending on the elevation of the building, not the unit.  Again, it is very important to know who pays it and how much it has been in the past.  Different insurance companies have different rates. We will have to obtain an elevation certificate prior to purchase, which will allow you to verify flood insurance rates. 

6.  Taxes   The taxes can be found in the MLS listings, but permanent, primary residents receive a large tax reduction that secondary homeowners do not receive. As a secondary homeowner, plan to pay about 1.5% of the purchase price towards taxes on a yearly basis. This is only an estimate and very general guideline, as property values vary greatly. We will verify the taxes of any property you like. 

7.  Pets     Many condominium associations do not allow pets at all.  If it is important to you, we need to find out which do allow pets. You must let us know if you plan to bring a pet so we can look at complexes that allow pets for owners.

8.  Rent     Some associations do not allow rentals at all; very few, but some.  Also if you are interested in renting your condo, you would want to know how much it has rented for, and can it be rented only long term or is short term allowed.

9.  Condition     It is important to read and understand the Seller's Property Disclosure Form.

10. PRIOR to placing an offer on any properties, you must obtain a pre-qualification letter from a mortgage lender if you are considering financing your upcoming purchase.  It can be completed over the phone in about fifteen minutes, with the lender of your choosing.  A pre-qualification letter is a document provided by a lender that states they believe you can qualify for your desired financing, based on the details you provided.  Your credit does NOT have to be run, and it is a non-binding document.  As real estate agents, we are legally bound to only bring qualified, prospective buyers to properties available in MLS, and this document provides the proof, should any seller inquire.  Your private information will never be disclosed without your consent.