Condos
What to know before you buy or sell in the condos segment of the Scottsdale market.
When you buy a Scottsdale condominium you are buying the association as much as the unit, which is why the HOA financial review is the most important part of the inspection period. Reserve funding, pending special assessments, litigation, owner occupancy ratio and rental restrictions all affect both your monthly cost and your ability to finance and later resell. Shawn Shackelton works these files regularly for seasonal owners who want a lock and leave property in Old Town or the Shea corridor.
What should I review in the HOA documents?
Six items. The reserve study and how funded the reserves actually are, since underfunded reserves become special assessments. The current budget and dues history. Minutes from the last twelve months of board meetings, which is where pending problems appear first. Any litigation involving the association. The rental policy, including minimum lease terms and caps on the number of rented units. And the insurance certificate, so you know what the master policy covers and what your individual policy must cover.
Why do some condos fail to qualify for financing?
Lenders evaluate the project, not only the buyer. A project can be considered non warrantable for reasons including a high investor to owner ratio, inadequate reserve contributions, pending litigation, a single owner holding too many units, or too much commercial space in the building. Non warrantable does not mean unfinanceable, but it typically means portfolio lending at different terms. Confirm project eligibility before you remove your loan contingency.
What matters most for lock and leave owners?
Security and maintenance while you are away, the association's rules on entering an unoccupied unit, water shutoff and leak detection requirements, and whether short term rental is permitted if you intend to rent seasonally. Arizona state law and municipal ordinance both interact with HOA rules here, so verify all three rather than one.
Other property types
Condos questions answered
Are Scottsdale condos a good investment?
It depends heavily on the specific association and the rental rules. A well reserved association in a walkable location with permissive lease terms behaves very differently from an underfunded one with a rental cap. Review the HOA financials before evaluating the investment case.
Can I rent out my Scottsdale condo short term?
Sometimes. Arizona state law limits how much cities can restrict short term rentals, but an HOA can and often does impose minimum lease terms. Read the CC and Rs and the current rules, and confirm with the association in writing before you buy for that purpose.
What are typical condo HOA fees in Scottsdale?
Fees vary widely with amenity level, building age and whether utilities are included, so a single typical number is not useful. Compare fees against what they cover and against the reserve funding level, because a low fee with no reserves is more expensive over time.
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