Posted by Diane (TX) on April 06, 2003 at 20:18:04:
The management should have financial information and have no problem showing it to you.
The monthly HOA fee usually is supposed to cover all exterior maintenance. This includes reserves, for example, to fix roofs or paving. If exterior repair is needed and the HOA hasn’t saved enough to cover the cost, it may make a special assessment. These can be pretty good hits. So find out how much the HOA fee is, what it covers (water and sewer? buillding insurance?), whether there is a history of special assessments, and whether there may be special assessments due to say, a 30-year-old roof and $2 in the HOA bank account.
Finding a Soundproof Condominium? - Posted by Bob Henry
Posted by Bob Henry on April 06, 2003 at 13:35:27:
As stated in my earlier message I would consider purchasing a condominium as long as it is relatively soundproof. The question is, how do I investigate to determine if the condo is soundproof? Where can I get this type of info? I am currently a New York City resident who needs a little more quiet and I’m considering Stanford, CT. Thanks for any help.
I recently moved from a 3 acre private compound to a Condo in the City. I was very concerned with the noise and peering eyes factor prior to the move. I can say that 6 months after the move I am quite satisfied with the almost non-existent noise as well as everyone keeping to their own business and out of mine.
A few recommendations for pre-screening or selecting a Condo would be:
Drive the area of the complex to see if the common maintenance meets your approval.
Interview some owners of the complex… (not the ones who have their units for sale) to see how long they have lived there and what their issues are with the mgmt, if any, as well as the strengths of the operation.
Select units that have block walls between them, which is not only good from a noise perspective, but for fire as well.
Once you have arrived at one or more candidates of possible Condo’s to consider, that meet the above 3 criteria, then get specific financials and by-laws on the complex to determine if the financials are sound as well as the rules reasonable.
Don’t be too quick to pounce on what appears to be a soundly managed operation, until you have taken much time to evaluate the above several times over. A poorly managed complex is much harder to get out of, than in…
Ask the management of any previous special assessments, for what and why…? This will tell you plenty.
In our exhaustive search prior finding our eventual spot of choosing, we saw some very nice places, that on the surface fit out needs. It was when I got into the numbers and some of the unrealisic assumptions and forecasts, it was obvious that some hefty assessments were in the near future. Of course this equates to a large condo fee increase in a lump sum, which is best if avoided.
Well ther is no doubt lots more to consider, but that should help you avoid some of the pitfalls out there… Good luck on the search.
Re: Finding a Soundproof Condominium? - Posted by Bob Henry
Posted by Bob Henry on April 06, 2003 at 16:12:42:
Hi JT-IN
Thanks for the great information, I really appreciate it. I am new to real estate so I just need clarification on points 4 and 5. Never having been a home owner, I am totally clueless when it comes to the language of real estate.
“4. Once you have arrived at one or more candidates of possible Condo’s to consider, that meet the above 3 criteria, then get specific financials and by-laws on the complex to determine if the financials are sound as well as the rules reasonable.
4. Don’t be too quick to pounce on what appears to be a soundly managed operation, until you have taken much time to evaluate the above several times over. A poorly managed complex is much harder to get out of, than in…
5. Ask the management of any previous special assessments, for what and why…? This will tell you plenty.”
How and Where do I get specific financials and by-laws, is this something that management will easily give me if I ask? What exactly are special assessments? Are these special assessment written down and is it best to get an attorney to review this info?
Diane gave you a good answer… To add to what she had said, the managing body of a Condo group is called an “Association”. This is a seperately organized corporation which is charged with the duty to operate the common business of Condo owners. The Association is governed by Trustees, which are usually elected, but sometimes appointed; (thankless job). The Association will have a seperate set of books which should have a recent financial statement that is open for review and is public record, and should be available for your asking.
One of the best ways to look at whether or not you want to buy a Condo in that grouping or complex is to look at the Association much the same way as if you were buying a stock. Some are financially better than others and the same is true with Associations. Some of this is due to management, while other factors are inherent such as type of construction, which rarely changes. e.g. Wood is more costly to maintain than brick… Or, lots of common area costs more to cut than smaller areas… Or the streets are either maintained by the city or by the Association… These are some of the biggest factors which will impact your recurring costs, known as Condo fees, and also special assessments which make up for any shortfall in the forecast of costs.