Medium price is about half that of single-family home

With housing prices heating up, many Las Vegas residents are looking at a more affordable option: the condo.

The median price of a condo is roughly half that of a resale single-family home. In June, the median price of a condominium or townhome, including a high-rise unit, was $115,000, according to the Greater Las Vegas Association of Realtors. That’s compared to the median price of $235,000 for a resale single-family home. That cost has increased 6.8 percent from last year’s figure of $220,000.

When it comes to purchasing a condominium, there are several things you should look for.

Barbara Holland, a local property manager, said reviewing the covenants, conditions and restrictions of the condominium complex’s homeowners association is the first thing homeowners should do.

“You want to find out what the responsibility is of the maintenance company and the homeowner,” she said. “Also, you want to read the rules and architectural regulations to know what you can and can’t do.”

Holland said it’s vital to find out who is responsible for issues that may arise with the building’s roof as well as whether the association has regulations on the type of flooring that can be installed in units and whether there are vehicle restrictions.

“You’ll get a resale package after you make an offer that will tell you the monthly assessment, common expenses and a copy of the budget,” she said. “They’re important because they’ll give you an idea of the maintenance that has occurred on the property. Also, ask questions about roof warranties and when it was last replaced.”

A property inspection is another important aspect of buying a condominium, Holland said.

“I’ve seen buyers get an inspection package back and the report says there’s a possibility of mold and they buy it without any further checks and then a surprise happens followed by a lawsuit,” she said. “If there’s a possibility of anything, you need to be smart and take the extra steps and spend the extra money to find out exactly what the issue is.”

Andrew Lynam, owner of Henderson-based WIN Home Inspection, said he looks at the electrical, plumbing and structure during a property inspection.

“Property inspections give the buyer the opportunity to know the issues and see what needs to be repaired before purchasing,” he said. “A big thing is to look at the firewall between units to make sure they’re in place because we’ve had many scenarios where they’re not installed properly and safety issues arise.”

Lynam said property inspections on condominiums typically last an hour and cost approximately $200 to $250.

“Typically we do the inspection for the buyer and what they do with the findings is up to them and their agent,” he said.

If an issue does arise, Lynam recommends not ignoring it.

“If there is any type of water damage concern, it’s always good to have it evaluated and tested further before moving forward with the purchase because in some cases there’s hidden water damage that was discovered after the fact,” he said. “Any issues or past signs of damage need to be evaluated and air quality tests should be performed.”

Michael Bell, president of sales at Las Vegas-based King of Condos, specializes in high-rise condominiums and said it’s important for potential buyers to not only look at the HOA’s cash reserves but to also understand the usage rules.

“Some condos in hotels can be rented out nightly but they have a limit on how long guests can stay there,” he said. “A lot of people think they can buy a condo and rent it out nightly only to find out that the HOA prohibits that.”

HOA fees, Bell said, can range from 50 cents to a dollar a square foot and residents have access to pools, fitness centers and security.

“Many people are amazed that condos aren’t expensive and are guard gated, have doormen, and a lobby with marble floors,” he said. “They’re a great value now compared to everything else.”

During the recession, apartment complexes were transformed into condos and Bell said though it doesn’t happen much anymore. He suggests those properties should be avoided.

“I’m not a big fan of those because apartment buildings don’t have the same building requirements,” he said. “If you are going to purchase one of those though, it’s important to inspect the property and find out its history.”

Bell said many of his clients are from out of town looking for a second home in Las Vegas.

“Rent in high-rise condos is so low compared to other major cities and prices of these condos are still below replacement costs,” he said. “As a buyer, condos are a great opportunity.”

Contact reporter Ann Friedman at afriedman@reviewjournal.com or 702-380-4588. Follow @AnnFriedmanRJ on Twitter.