5 Essential Tips for Buying a Condo in Austin

Austin is a perfect city to get a taste of Texas life. 

There is plenty of great food, thriving arts, music, diverse culture, and expansive green spaces. Many companies are setting up shop in Austin, attracting workers from all over the country who like the idea of zero state income tax. 

No matter what attracted you to the city, there is a slice of property in Austin for everyone, from large Hill Country compounds to lofts by the Colorado River. But some of the best luxury properties are the condos dotting the city. From condominium complexes in the suburbs, to giant high-rises in Downtown, there are plenty of housing units to choose from. 

Buyers will want to prepare ahead of purchasing a condo, as it differs from buying a house. That is why our team at Prevu Real Estate shared their insights below about buying an Austin, TX condo. 

Tips for buying a condo in Austin

• Save early for a down payment
• Figure out what condo style is for you
• Decide if you want a resale or new construction
• Find an agent skilled in condos 
• Partner with an agent that offers commission rebates

Save early for a down payment

Buying a home is expensive, whether you are purchasing a condo or a single-family home in Austin. 

Start saving well before setting up tours of any available units. Saving is different for everyone; some have to cinch their belt for years to afford a down payment, cutting out vacations, expensive nights out, and new car purchases. But the investment is worth missing out on a Tulum trip or two. If you will need financing to make your purchase, you should also be on top of your credit score. 

Down payments usually total 20% or more of the purchase price of a condo in downtown Austin. Some condo boards require a larger down payment depending on the amenities offered in the building. That is why you want to start saving early and often if you plan to buy a condo in Austin. You will want to save, and then save some more, as most condominium homeowner associations, or HOA, usually require that you have extra capital on hand to cover HOA fees. 

As you scour the city for your perfect condo, look out for language in listing descriptions calling for "maximum financing," as this will give you an idea of how much you will need for a down payment. The trade-off of a large upfront investment is that you will have lower mortgage payments and interest rates to deal with each month. 

Figure out what condo style is for you 

Condominium complexes come in all shapes and sizes across Austin and figuring out which one fits your needs can be challenging. From gleaming buildings overlooking the Colorado river to quaint homes in a managed community, there is something for everyone.

For instance, there is the art deco-inspired 360 Condos, a glass and steel complex reaching 44 stories into the Texas sky located between 3rd and 4th street This high-rise building provides amenities like a swimming pool, outdoor roof deck, a theater, and a gathering club room. But as you get more amenities in a condo unit, you can expect the sales price and monthly fees for common area perks to rise.

Other similar buildings are the Austonian and Independent, the tallest residential high-rise in Austin. But living near the clouds with floor-to-ceiling windows is not for everyone. 

Some folks may want to forgo the skyscrapers and find a smaller building in other Austin neighborhoods where they can get away from the throngs of people crowding Downtown. There are plenty of condos for sale in smaller buildings, some closer to the incoming Tesla Giga factory or other parts of town. 

Decide if you want a resale or new construction 

As more people move to Austin, developers work overtime to create new construction dwellings for incoming homebuyers. Depending on their home buying goals, some folks want a brand new single-family home, while others are ok buying a resale. 

You can find new high-rise buildings like 44 East providing residents with stellar views of the Texas Capital on one side and Lady Bird Lake on the other. Such buildings come with new appliances and sleek, modern designs. Plus, if you get in front of a developer before they build out the units, you can sometimes customize your condo while contractors are still working. 

Buildings like the Austonian have had residents since 2007, and purchasing a unit here means getting a resale. An older condo may need a touch-up, like new appliances or remodeling outdated fixtures, but you can get them at a lower price point. While new condos are popping up in Downtown Austin, some new constructions are opening up in other parts of town. 

For instance, developers are building The Congress Lofts at St. Elmo Road. This 139-unit condo building will provide authentic loft-like living spaces with open floor plans and views of the Austin skyline. Buyers have different options for the layout and appliances in their unit, giving them a chance to make the dwelling match their tastes. 

The condo will be in the center of the St. Elmo District, where there are multiple restaurants, bars, a rock climbing gym, and an H.E.B. Construction is expected to conclude in 2024, and developers are already taking reservations from interested buyers. 

After building up your savings and deciding on what kind of condo you want, it is time to find yourself an agent to facilitate your purchase.

Find an agent skilled in condos 

Purchasing a home is a complicated process, and this is true for condos in Austin too. 

Whether you are buying a new construction condo or a resale unit, you should find a buyer’s agent well-versed in helping people buy condos. They can tell you what costs the condominium association will cover and what monthly common area charges you can expect. 

You will want an expert real estate agent at your side as you tour properties, as they can walk you through each step of the deal process, from the initial tour to the final negotiations. That is why you should create a shortlist of agents and interview each of them, figuring out how much experience they have selling condos in Austin. They should be able to walk you through the deals they've done and how well they know the market for condos in the city. 

An expert agent will help you explore the rules and regulations of the condo management board. They can scour the condo association's financial statements to ensure there are no incoming renovations or special assessments that will impact your monthly common charges. 

Agents can help in many ways, but some can even help you rebuild your finances at closing through a commission rebate. 

Partner with an agent that provides commission rebates 

As you interview agents and ask about their experience with condominiums in Austin, ask them about their fees. While this may seem taboo, you can and should ask, as broker fee associated with buying a condo is not set in stone. 

Generally, most listing agents and buyer's brokers split the commission at closing. Not all brokers offer this, but some can give homebuyers a commission rebate. This tool, sometimes called a commission refund, enables agents to provide a portion of their fee back to you when you close a deal on the condo of your dreams. 

For instance, agents at Prevu Real Estate can offer a portion of their broker commission back to new homeowners when they get the keys to their new home. This rebate is possible because Prevu modernized the home search and purchasing process, streamlining transactions for buyers and their agents. 

The realized savings are provided to new condo owners in Austin when they get the keys to their new home. These funds can go a long way to rebuild valuable savings or cover the cost of remodeling of a resale condominium. 

Condos for sale in Austin, Texas

Interested in buying a condo this year? Browse listings in Austin and see how much you can save with Prevu’s Smart Buyer Rebate.