A Sedona condo or townhome can be the easiest way to own here: no yard work, a lock-and-leave home for the months you are away, and often a lower price than a single family house. It also comes with a second set of rules that a house does not have. The association decides what you can change, what you pay each month, and in many communities whether you can rent the home out at all.
I list and sell both, and the buyers who are happiest are the ones who read the association’s paperwork before they fell in love with the unit. Here is what I tell them to check.
What you own, and what the association owns
The terms get used loosely, so start with the documents instead of the label on the listing.
- Condo: you generally own the inside of your unit and a share of the common areas. The association handles the building exterior, roofs, and shared grounds.
- Townhome: in many communities you own the structure and the lot under it, with shared walls and an association that maintains common areas. Some townhome communities are set up as condominiums, so the legal structure varies.
The recorded declaration (often called the CC&Rs) tells you which one you are buying and who is responsible for the roof, the exterior paint, the driveway, and the water lines. The MLS listing will not tell you that.
Sedona has both ends of the range. The live feed on my Sedona condos and townhomes page runs from canyon retreats in Oak Creek Canyon to gated villa communities and Village of Oak Creek townhomes, and the rules differ community by community.
What to ask the association before you offer
Ask for these early. A good listing agent can get most of them quickly, and Arizona’s Condominium Act sets out the resale documents an association must provide to a buyer (A.R.S. 33-1260). Your title company or attorney can confirm the timing and any fees.
- The budget and the dues. What the monthly fee covers (exterior maintenance, insurance on the building, water, trash, pool, landscaping) varies a lot from one community to the next.
- The reserve study. A well funded reserve for roofs and paving means fewer surprise bills. A thin one often means a special assessment later.
- Special assessments. Are any approved, proposed, or recently charged?
- Meeting minutes. Two years of them show you what the board argues about: repairs, rule enforcement, insurance renewals, lawsuits.
- The master insurance policy. Find out what it covers and what you need in your own condo policy for the inside of your unit.
- Pending litigation. A lawsuit against the association can affect both your financing and your future resale.
- Rental and pet rules. Read the actual language, not a summary.
Short term rentals: the HOA decides, not the city
This is the question I get most from Sedona buyers. Two separate sets of rules apply.
- The City of Sedona requires a short term rental permit, and Arizona law keeps cities from banning short term rentals outright. I walk through the permit steps and fees in my Sedona short term rental license guide.
- The association can restrict rentals through its recorded declaration. The city does not enforce HOA rules, and getting the city permit does not override them. Many communities set minimum lease terms or prohibit nightly rentals entirely.
Before you count on rental income, get the current rule in writing, and ask how long it has been in place and whether the board has changed it recently. Rules and their enforcement can shift. My article on the VOCA short term rental ban shows how much one board decision can matter for owners in the Village of Oak Creek. If rental income is part of your plan, run the numbers on a property that is actually allowed to rent before you fall in love with the unit. My STR deal analyzer helps with that.
Financing: the lender reviews the community, not just you
With a condo, your lender looks at the whole project as well as your credit and income. Things lenders typically review include how many units are owner occupied, whether the association keeps adequate reserves and insurance, how many owners are behind on dues, and whether there is pending litigation. FHA and VA loans have their own project approval rules, and the requirements change, so I do not quote percentages here.
What I do tell buyers:
- Talk to your lender before you make an offer, and tell them the community name so they can check the project.
- A paying cash buyer skips most of this review, which can help in a competitive situation.
- If a community fails a lender’s review, it can narrow your buyer pool when you sell. That is worth thinking about before you buy.
Condo or house in Sedona
A condo or townhome often costs less than a freestanding home, and the association takes over exterior upkeep. In return you give up some control, pay monthly dues, and may face rental limits. A house gives you more freedom and usually more land, with more to maintain yourself. If you want a view of the red rocks without the upkeep, a condo or townhome is worth a serious look. If you want a short term rental, or you want to change the exterior, check the rules first.
For current prices and how long homes take to sell, see my Sedona real estate market stats. If you are looking in the Village of Oak Creek, my Village of Oak Creek listings page shows what is active there.
What to do next
Tell me how you plan to use the place (full time, part time, or rental) and I will point you to communities that fit and pull the association documents before you write an offer. You can reach me on the contact page.
This article is general information, not legal or financial advice. Confirm association rules, lending requirements, and Arizona statutes with your title company, lender, or attorney before you buy.