More and more people are considering buying a condo in an established condo community or in one of the new condominium complexes going up everywhere and especially the beautiful new luxury condo communities in Boston. Those potential buyers need to check out, along with their Realtor, some important information prior to making that offer. Remember that your Realtor also has many answers concerning condo purchasing and what to look for, and what to look out for.
Ask these 10 questions of the Condo Board:
1 How many of the total units are owner occupied compared to renter occupied?
In most cases, the more owner occupied units there are the more marketable the units are and you will find lenders are happier to get involved in the financing.
2 Get a copy of the CC&Rs which govern the property. Read it over, or have your Realtor go over it with you so you understand what you can and cannot do as a homeowner.
For example in some condo complexes, you might not be able to rent out your unit if you want.
3 Find out about the general expenses for the complex and ask the board how much money it keeps in reserve for emergencies. Is that money invested or in the bank or what?
4 Are the association assessments keeping pace with the annual rate of inflation?
Assessments are usually adjusted at least once a year. Your Realtor can look at the assessments and see how they compare to other rates in the area.
5 Find out what does and what doesn’t the assessments cover? Example: Do the assessments cover the common area maintenance, trash collection, and other normal upkeep costs?
6 Have there been any special assessments in the last few years, if this is an older condo complex? Have there been repeated special assessments? What for?
7 Is there a large turnover occuring in the complex and why? You might want to talk to some residents and get their opinion of how the complex is managed.
8 Is there any litigation going on with the complex and with who, and for what?
9 If this is a new condo community, how does the construction look and is the developer reputable? Again, you might want to talk to a resident and get their opinion.
10 Is the complex or community part of an umbel la corporation, where there are sub corporations under it? Who is the management company or is it self managed and how is the Board of Directors appointed or how do they get their jobs on the board?
Your local Boston Realtor can help you with any questions and research anything you want to research. The new condo communities in Boston are all wonderful with the best in construction and management. Your Buyers agent, or Realtor, is always there to help out and if he or she can’t answer your questions, he/she will find out the answer for you. Get the CC&Rs and go through them carefully with your Realtor, or an attorney, and then if everything looks good..GO FOR IT!