10 Questions to Ask Your Condo Board
1. What percentage of units is owner-occupied? What
percentage is tenant-occupied? Generally, the higher the percentage of
owner-occupied units, the more marketable the units will be at resale.
2. What covenants, bylaws, and restrictions govern the
property? What grandfather clauses are in place? You may find, for instance,
that those who buy a property after a certain date can't rent out their units,
but buyers who bought earlier can. Ask for a copy of
the bylaws to determine if you can live within them. And have an attorney review property
docs, including the master deed, for you.
3. How much does the association keep in reserve? How is
that money being invested?
4. Are association assessments keeping pace with the
annual rate of inflation? Smart boards raise assessments a certain percentage
each year to build reserves to fund future repairs. To determine if the
assessment is reasonable, compare the rate to others in the area.
5. What does and doesn't the assessment cover-common area
maintenance,
recreational facilities, trash collection, snow
removal?
6. What special assessments have been mandated in the
past five years? How much was each owner responsible for? Some special
assessments are unavoidable. But repeated, expensive assessments could be a red
flag about the condition of the building or the board's fiscal policy.
7. How much turnover occurs in the building?
8. Is the project in litigation? If the builders or
homeowners are involved in a lawsuit, reserves can be depleted quickly.
9. Is the developer reputable? Find out what other projects
the developer has built and visit one if you can. Ask residents about their
perceptions. Request an engineer's report for developments that have been
reconverted from other uses to determine what shape the building is in. If the
roof, windows, and bricks aren't in good repair, they become your problem once
you buy.
10. Are multiple associations
involved in the property? In very large developments, umbrella associations, as
well as the smaller association into which you're buying, may require separate
assessments.
If you're interested in starting the home buying process, or simply have questions, please call or e-mail. Add any special requests you have in the comments section.
ADVANTAGE JANES REALTY cooperates fully with all other real estate companies and we have access to all available listings in our area. As experienced Real Estate professionals, we will provide the dedication, honesty, and outstanding service that each client deserves. I look forward to working with you.
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