Question About Condo Ownership Expenses (Myrtle Beach, Arial: sales, real estate, oceanfront)

[canudigit]

The other day I requested information from a realtor about a very reasonably priced condo unit in a wonderful oceanfront building where we always stay when we go to Myrtle Beach. He sent me most of the details, such as the association fee and what all it includes, details on square footage, appliances, etc. but he neglected to mention the cost of property tax or insurance, which, obviously, are extremely important numbers to know. When I emailed him back to request that information, he didn't answer, just kept sending vaguely worded emails about how now is the perfect time to buy, how discerning we must be to know this, etc., etc. yada, yada, yada. This is the first time that I have ever seriously inquired about purchasing oceanfront property in MB, so tell me, are the taxes and insurance so ridiculously high that he is trying to avoid telling me what they are until he gets us down there and can work on us one on one? Isn't hurricane insurance mandatory for properties on the ocean, and if so, isn't it extremely expensive? This is a second floor unit towards the back of the building, hence the terrific price, but we are okay with where it is, we just need to know ALL of the expenses. Wouldn't a reputable realtor give us the information that we requested and let the cards fall where they may?

[Summering]

Yes, he should give you that information as close as he can. Like last years information at the least.
Insurance is high East of 17 and especially on the ocean front.......even though your in back.
I'm sure he could dig up what that cost has been in the building. I think you should call the management office of your condo that your thinking about. They should be able to answer some of these questions. I got much information by going past the realtor and talking to management.
You should have a list of questions. Also ask if any assessments are pending and how often they arise. Perhaps your monthly fee includes insurance on the building.......something you'll need to know.

[tmozer]

If you have the ML# number, you can Google with it and usually find various listings of the property, one of which could have that information.

[canudigit]

Thanks for your replies. I will try googling the MLS#.

[rrufast]

If the Realtor gave any vague answers at all... find another agent. Period. The End.

If you have the MLS#, you can find this prior years tax information yourself via the Horry County Gov portal..., assuming the tax map number is listed in the MLS ad.

Insurance will vary from building to building for a multitude of reasons... Insurance rates have fallen in *most* OF buildings over the last three years. this, after the ENORMOUS increases Post-Katrina.

Best of luck in with either your current agent or in your search for another..

[Coasters]

Watch out for developments that are not completed. They may be getting behind in maintenence and upkeep.
Also get the financials and verify that reserves exist and are being added to per an accepted schedule. These reserves are crucial when its time things like a roof or siding. A special assessment could otherwise be required, even if its for a different building in the complex.
Associations can also be getting behind because of a high level of foreclosures.
Agents don't seem to get too involved in these questions.
Insurance should be included in the fee but it is sometimes kept separate. The closer to the coast the more this costs and condos are harder to insure. This can amount to hundreds per month.
Talk to the management company about these issues and about foreclosures.
Get a copy of the by-laws and read the rules so you are not surprised later regarding things like pets and boats and parking.
Condos can be great and can be a good value. There is just a whole other layer of the operation that you need to be aware of compared to a home.

[Tinabean]

Good info from Coasters and the others. We bought our condo in 2008 and guess what? Because the area had to make up lost revenue from the bike rally, the taxes on our place were reassessed and nearly doubled for 2009! The new law stipulates automatic reassessment with condo sales...not sure if it is for other home sales in the area. Your realtor probably doesn't want to tell you that once you buy this condo, that will trigger an automatic reassessment so whatever was paid in taxes before will have no bearing on your newly assessed tax bill. I'd call the tax office on the property and inquire about the law and how it might affect your tax burden. Our HOA fee covers our hurricane insurance (structure). We have to have another secondary policy to cover from the studs to the interior should something happen. It covers contents and loss of use in the event of an incident. It is about $475 per year for that policy, which seems pretty reasonable to me. The folks at Field Insurance in Surfside could probably give you a quote for the property you are looking at over the phone. I know the level you are on in the building affects the cost....the higher the floor, the better (less flood risk, I guess). Hope this helps! Good luck on making your beach dreams come true!!!! Our little place is a blessing and dream come true.

[canudigit]

Thanks so much for all of this good information. I really appreciate it. We will be visiting MB in early May, and then we may look at a couple of places then. you all have really helped us to know some good questions to ask.

Thanks again!

[creekgirl4life]

The reassessment you mention Tinabean is the Point of Sale Assessment that calls for reassement of ALL properties when they are sold with a few exceptions.

The best way to find out about what your taxes will be is to speak with the county tax assessor and ask what the tax would be on a particular parcel at the price you intend to pay for it before you purchase. They are the most qualified to provide you with that information.

Keep in mind that if you buy a foreclosure the point of sale does not apply so if you get a deal on the property by paying a low price the taxes will not be assessed at the lower price you pay.

Hope this helps!

[neecewh]

What about foreclosures and delinquent insurance and HOA fees? My parents are putting a bid on a foreclosure and my brother (being the brains in the family) asked "who would be responsible if the previous owner was not current on their insurance and HOAs?" I asked the realtor and she said "Per contract, it will be agreed that the buyer and seller agree to prorate things like real estate taxes, condo assessments, POA fees, etc" .... Anyone have a clue what exactly that means and what they should be watching out for?