Buying a condo in San Francisco can be a great way to own property in the city without taking on all of the maintenance that comes with a single-family home. But when you buy a condo, you're not just buying the unit. You're also buying into a building, an HOA, and a shared financial responsibility.

That means there are a few things you should understand before making an offer.

You're Buying More Than the Unit

When you tour a condo, it's easy to focus on the kitchen, views, layout, or natural light. Those things matter, but the condition and financial health of the building matter too.

A beautiful unit in a poorly maintained building can create headaches and unexpected expenses. Before buying, it's important to understand how the building is managed, what maintenance has been completed, and what may be coming down the road.

Understand the HOA Fees

Monthly HOA dues can cover things like building insurance, exterior maintenance, common areas, utilities, landscaping, reserves, and other shared expenses.

A higher HOA fee isn't necessarily a red flag, and a low HOA fee isn't automatically a good thing. The more important question is: What are you getting for that monthly payment, and is the HOA adequately funding the building's needs?

Read the HOA Documents

The HOA documents can tell you a lot about what it's actually like to own the property.

Pay attention to:

• Financial statements and reserve information
• Recent and upcoming special assessments
• HOA meeting minutes
• Building maintenance and repair history
• Insurance information
• Rules regarding rentals, pets, renovations, parking, and other use restrictions
• Any ongoing disputes or major building concerns disclosed in the documents

Meeting minutes can be particularly helpful because they may reveal issues that aren't obvious when you walk through the property.

Don't Forget Insurance

The HOA typically carries insurance for the shared building and common areas, while individual owners generally need their own coverage for their unit and personal property.

It's worth understanding exactly what the HOA's policy covers and what responsibility falls to you as the homeowner. For questions about appropriate coverage, buyers should work with an insurance professional.

Look Beyond the Unit

Parking, storage, outdoor space, elevators, laundry, shared gardens, and other common amenities can make a meaningful difference in how you experience the property.

It's also worth asking yourself how the building fits your plans. If you might want to rent the property later, for example, you'll want to understand the HOA's rental rules before you buy.

The Building Matters as Much as the Condo

One of the biggest mistakes buyers can make is evaluating a San Francisco condo only by looking at the unit itself.

The right condo isn't necessarily the one with the prettiest kitchen. It's the one where the unit, building, finances, rules, location, and long-term ownership costs all make sense together.

That's why condo due diligence is such an important part of the buying process. Before you fall in love with the finishes, understand what you're actually buying.

Thinking about buying a condo in San Francisco? A good place to start is by looking beyond the listing photos and understanding the full picture of the property and building.