Due Diligence is Key When Buying a Condo: Lessons from Admiral's Quarters in Orange Beach
When purchasing a condo, especially along the Gulf Coast, conducting thorough due diligence is essential. Recently, Admiral’s Quarters in Orange Beach, Alabama, has undergone significant updates and assessments, which provide a great case study for prospective buyers.
Key Questions to Ask Before Buying
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What is the age of the hot water heater and HVAC system?
Insurance companies often require these to be updated before issuing policies, as older systems may not meet current standards. -
How are insurance costs assessed?
With rising insurance premiums, it's critical to understand how these are shared among condo owners and whether additional assessments may be required. -
What are the HOA dues and any recent or upcoming special assessments?
These can vary significantly and impact the cost of ownership.
Recent Assessments at Admiral's Quarters
Admiral's Quarters has seen increased fees to address rising insurance costs and structural repairs:
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Current Insurance Premiums:
The complex budgeted $430,000 for insurance in the previous year, but the renewal for 2024 came in at $1,128,000, necessitating significant adjustments to dues. - Example from on condo in Admiral's Quarters:
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- Actual dues: $720 per month (April–December 2024).
- Additional unbudgeted insurance dues: $511 per month.
- Total: $1,231 per month starting April 2024.
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Assessment for Repairs and Upgrades:
Recently completed projects include the replacement of balcony railings and new elevator installations in the fall of 2023. Additionally, the HOA is collecting an extra fees per month through the end of the year to offset increased insurance costs.
Balcony and Stucco Repairs: What You Need to Know
The HOA has undertaken significant balcony and stucco repair projects. Key updates include:
- 09-07 Stack Repairs (2024):
Completed repairs included addressing balcony edges, replacing railings, sealing windows and sliders, and painting. Safety concerns prompted additional stucco repairs on the 06-05 stacks. - 06-02 Stack Repairs (2024-2025):
Mobilization for the next phase began in October 2024. Work includes railing removal, concrete edge repairs, stucco replacement, and painting. Noise and limited balcony access are expected.
Special Considerations for Buyers
- Rental Policy: Admiral’s Quarters requires a one-week minimum stay for rentals, making it ideal for longer-term vacationers but potentially limiting for short-term rental investors.
- Designated Parking: Each unit includes an assigned covered parking spot, which is a valued amenity for owners and guests.
- Impact on Lifestyle: During repairs, noise and limited balcony access can affect unit usage. Plan rentals and personal stays around construction schedules to minimize disruptions.
Final Thoughts
As I always tell my clients, buying a condo involves more than finding the perfect view or location. Understanding the financial and logistical aspects of ownership is just as critical. By asking the right questions, you can ensure your investment aligns with your goals and lifestyle.
If you’re considering purchasing at Admiral's Quarters or anywhere along the Gulf Coast, I’m here to guide you every step of the way. With my expertise and insights, you’ll have the confidence to make informed decisions.
As a Gulf Coast real estate advisor, I always stress the importance of thorough due diligence when purchasing a condo. Whether you're a first-time buyer or a seasoned investor, the devil is often in the details, and asking the right questions upfront can save you from costly surprises down the road.
VIEW THE ADMIRAL'S QUARTERS REPAIR SCHEDULE
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VIEW THE ADMIRAL'S QUARTERS BALCONY REPAIR SCHEDULE
VIEW THE INSURANCE LETTER HERE
Questions Every Buyer Should Ask
When considering a condo purchase, here are some critical steps I recommend:
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Contact the HOA and Property Management
Reach out to the HOA board, president, or property management company to inquire about special assessments or upcoming assessments. These can significantly impact your financial commitment. -
Understand Insurance Assessments
Insurance can be a major expense for condo owners. Ask how insurance is assessed and whether it’s included in HOA fees or billed separately. This can vary significantly between complexes. -
Inspect Major Systems
Find out the age of the hot water heater and HVAC system. If these systems are outdated, your insurance company may require them to be replaced before issuing a policy..jpg "Meredith Amon Gulf Coast Realtor")
Case Study: Admiral's Quarters in Orange Beach, Alabama
The recent balcony and stucco repair project at Admiral's Quarters is a prime example of why due diligence is crucial. These repairs, while essential for safety and structural integrity, resulted in assessments that directly impacted condo owners.
The 09-07 balcony/stucco repair project included:
- Repairing concrete balcony edges and replacing railings.
- Removing and replacing stucco and waterproofing on the south elevation.
- Sealing all windows, sliders, and balcony floor tile edges.
- Painting the south elevation and inside each balcony.
Additional emergency work on the 06-05 stacks was also incorporated into the project after C/Sharpe identified stucco at risk of breaking off. This extended the scope and timeline of the project but addressed significant safety concerns.
The next phase, scheduled from October 14, 2024, to February 28, 2025, will focus on the 06-02 stacks and adjacent areas. While mobilization impacts should be minimal, noise and temporary closures of balconies will affect owners and guests.
Insights for Buyers
Before purchasing a condo, consider the implications of such projects. Ask yourself:
- Are you prepared for potential special assessments?
- How will ongoing projects impact rental income if the unit is an investment?
- What long-term benefits do these repairs bring to the property’s value and safety?
Quotes from Residents
One owner at Admiral's Quarters shared, "The assessments were unexpected, but knowing the building will be safer and more secure is worth the investment. Transparency from the HOA has been key in managing expectations."
Another resident added, "Understanding the timeline and scope of work helped me plan my stays and rentals more effectively."
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Final Thoughts
Due diligence is not just about protecting your investment—it's about peace of mind. As a local expert and advisor, I’m here to guide you through these complex decisions. Let me help you ask the right questions and find the perfect condo that meets your needs.
Whether you’re exploring Admiral's Quarters or other exceptional properties along the Gulf Coast, I’ll ensure you have all the information you need to make an informed decision.
Meredith Amon is a local real estate advisor, licensed in Alabama and Florida. She specializes in helping buyers and sellers navigate the buying and selling of homes along the Gulf Coast.
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