There are many cases across the U.S. where condo owners suddenly receive special assessment bills for thousands of dollars due to a lack of reserve funds. The reason I bring this up for those considering purchasing a condo in Fargo is that many still find out about the financial status of the homeowners association only after signing the contract, having only looked at the purchase price.

As of May 2026, the median sale price of homes in Fargo is $314,812, which is a 0.7 percent increase from the previous year (Redfin). In contrast, the median listing price for condos is $513,000, which is actually higher than the median listing price for single-family homes at $353,000 (Redfin). This reversal seems to be due to the limited number of condos available in Fargo, which is around 114 units, causing the statistics to fluctuate significantly based on the composition of listings at any given time. If you have the same budget, it's worth considering whether new condos or older ones are more advantageous in terms of management fees.

The fact that there are only about 114 condos available also has different implications for rental investors. While there is the advantage of less competition when finding tenants, it's important to consider that the pool of potential buyers may also be limited when it comes time to sell. Newer condos that are easier to manage tend to be more favorable in maintaining tenants and during the resale process.

North Dakota has not yet established separate laws like Florida's SB 4-D, which mandates structural inspections and full reserve fund contributions for buildings over three stories. However, the absence of state laws does not mean that you should skip checking the financial status of the homeowners association. In fact, in areas without legal requirements, it becomes even more crucial to verify whether the association has adequately built up its reserve funds.

Another aspect to consider is the availability of financing. Fannie Mae and Freddie Mac classify condos as non-warrantable if the delinquency rate exceeds 15 percent, the rental unit ratio is excessively high, the reserve fund is less than 10 percent of the budget, or if there are pending lawsuits. Such buildings may not qualify for conventional loans at all, or only loans with significantly higher interest rates may be available.

Items to actually check include the homeowners association's financial statements and budgets from the last 2-3 years, reserve study results, any planned special assessments, records of lawsuits or disputes noted in meeting minutes, and rental restriction regulations (NAR Condo Buying Guide). If you are investing for rental income, pay particular attention to whether there are minimum rental periods or caps on rental units in the rental restriction regulations.

Insurance premiums have also changed significantly compared to the past. In recent years, rising reinsurance costs and litigation risks have led to an increase in condo insurance premiums nationwide, which can result in higher management fees or special assessments (Insurance Information Institute). In a market like Fargo, where inventory is low, the impact of rising insurance premiums on management fees may be felt more quickly.

If Korean families are considering moving to Fargo, it's advisable to also look into the school district associated with the condo. While you can refer to ratings on sites like GreatSchools or Niche, school district boundaries can change over time, so it's best to verify the actual school assigned to the address before signing a contract.

If you are moving from another state, you should also consider that property tax and insurance systems may differ from your previous residence. Property tax rates and condo-related tax regulations in North Dakota can vary by county, so it's safer to check this with a local accountant or real estate expert.

If you are deliberating between a single-family home and a condo, it's more realistic to compare the total costs, including not just the purchase price but also the monthly management fees and potential future special assessments. This article does not constitute investment or legal advice, and it is recommended to consult with a real estate professional and attorney before finalizing any contracts.