U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-16-2012, 06:12 PM
 
137 posts, read 228,902 times
Reputation: 144

Advertisements

Hi all,

I'm making an offer on a condo, but want to make sure all my Is are dotted and Ts crossed.

Before I make an offer, I want to see the condo association's books so I can make sure that the reserve fund is adequate, and there are no past or upcoming assessments. My real estate agent says I can only get this AFTER the offer is accepted as a condition. This seems weird as I can't make an honest valuation without seeing this.

Another weird thing is I can't find the condo association online - I know it VERY recently converted from a co-op to condo. Is this a concern? There are about 120 units there, and about 5-8 for sale - But none have sold in over 3 months - In a condo 5 miles away around the same price point about the same number were for sale, 5 have sold in the same time.

I really love this unit, and the price is just incredible (the drawback is that it's on the 3rd floor and there is no elevator). The owner paid 150k in 2006, now they dropped to 100k, and other units in the division are asking 115k and up. It's seriously my "ideal" condo and I really want it - It has been on the market for over 7 months, so I'm thinking I can low-ball (maybe $88k?) since I'm sure the owners aren't enjoying paying their $247 HOA bill anymore.

Any advice is appreciated, this is my first real estate purchase - I'm only 24 and don't want to saddle myself with a disaster that will cause me too much stress. Sorry for so many questions!
Reply With Quote Quick reply to this message

 
Old 06-16-2012, 06:18 PM
 
Location: The Triad (NC)
26,833 posts, read 57,830,396 times
Reputation: 29215
Quote:
Originally Posted by New-in-NEO View Post
I'm making an offer on a condo, but want to make sure all my Is are dotted and Ts crossed.
...I want to see the condo association's books
My real estate agent says...
Uh huh...

Quote:
Any advice is appreciated, this is my first real estate purchase - I'm only 24.
You need an ATTORNEY who specializes in real estate and KNOWS your county.
Don't do anything else (like sign anything) until you have this attorney to ask these questions,
to advise you generally and as things progress... to review what contracts you might sign
and manage the closing as well.
Reply With Quote Quick reply to this message
 
Old 06-16-2012, 06:52 PM
 
Location: Florida -
8,238 posts, read 9,990,552 times
Reputation: 15072
Quote:
Originally Posted by New-in-NEO View Post
Hi all,

I'm making an offer on a condo, but want to make sure all my Is are dotted and Ts crossed.

Before I make an offer, I want to see the condo association's books so I can make sure that the reserve fund is adequate, and there are no past or upcoming assessments. My real estate agent says I can only get this AFTER the offer is accepted as a condition. This seems weird as I can't make an honest valuation without seeing this.

Another weird thing is I can't find the condo association online - I know it VERY recently converted from a co-op to condo. Is this a concern? There are about 120 units there, and about 5-8 for sale - But none have sold in over 3 months - In a condo 5 miles away around the same price point about the same number were for sale, 5 have sold in the same time.

I really love this unit, and the price is just incredible (the drawback is that it's on the 3rd floor and there is no elevator). The owner paid 150k in 2006, now they dropped to 100k, and other units in the division are asking 115k and up. It's seriously my "ideal" condo and I really want it - It has been on the market for over 7 months, so I'm thinking I can low-ball (maybe $88k?) since I'm sure the owners aren't enjoying paying their $247 HOA bill anymore.

Any advice is appreciated, this is my first real estate purchase - I'm only 24 and don't want to saddle myself with a disaster that will cause me too much stress. Sorry for so many questions!
You should be able to get the financial statement from the owner/realtor along with information regarding any outstanding assessments. Future assessments are another matter, but, if known, must be divulged by the Condo HOA during your sale process. Go ahead and make your offer contingent on adequately funded reserves, no assessments and evidence of good HOA financial management practices. That will give you an 'out' ... along with the inspection process. HOA Docs will also be provided when you make an offer.

Another thing you will want to ask about is the ratio of HOA delinquencies. If these exceed 15%, you will have difficulty getting mortgage financing (which, in this economy, could be why their units don't seem to be selling).

Generally speaking, buying a condo is a lot like buying a house. You would similarly be unlikely to get a full disclosure of any liens against the property and other owner information prior to making an offer. But, if the owner is hoping for an offer, you can use that as leverage to get whatever added information you may be seeking.
Reply With Quote Quick reply to this message
 
Old 06-16-2012, 08:32 PM
 
137 posts, read 228,902 times
Reputation: 144
Thanks alot! One thing I have going for me (I think) is that it will be a cash purchase, so I'm assuming that that makes things a little easier. I just don't want to spent 1-2k on attorneys just to hear that something is amiss. I guess it's better to hear that before I sign on the dotted line though.

Thanks for both or your advice. It is tremendously helpful and I will heed it.
Reply With Quote Quick reply to this message
 
Old 06-16-2012, 08:34 PM
 
137 posts, read 228,902 times
Reputation: 144
Quote:
Originally Posted by MrRational View Post
Uh huh...

Wait, is this a sarcastic uh huh, or is my real estate agent right?

BTW, I love the Triad, I'm there nearly every week for work - My second favorite place on earth after NE Ohio!
Reply With Quote Quick reply to this message
 
Old 06-17-2012, 06:06 AM
 
Location: The Triad (NC)
26,833 posts, read 57,830,396 times
Reputation: 29215
Quote:
Originally Posted by New-in-NEO View Post
Wait, is this a sarcastic uh huh, or is my real estate agent right?
Yes sarcastic. The attorney will be far more important to YOU than an agent.

Another point as you travel a lot and are so young...
seriously consider how your options to transfer to other jobs and cities will be limited by owning.
Reply With Quote Quick reply to this message
 
Old 06-17-2012, 08:21 AM
 
Location: MID ATLANTIC
7,598 posts, read 17,614,249 times
Reputation: 8078
Condo docs are typically not provided until there is a ratified contract.......why, those docs cost money. I imagine if you are willing to pay for the docs up front, you could get your hands on the documents.

There's a reason why the prices are dropping so fast......could it be an albatross? As a seller, would you be able to sell? If you are paying cash, you would have no idea if the financing well has run dry.

Your gut is screaming at you.......you may not understand the words....but listen.
Reply With Quote Quick reply to this message
 
Old 06-17-2012, 08:42 AM
 
2,613 posts, read 4,101,590 times
Reputation: 1869
I would be more worried with all cash. Then you don't even have a bank that is sort-of, but not really on your side. If it's an easy transaction, you should pay <$1K for a lawyer (mine did the title search as well, which I assume you want for all cash).
Reply With Quote Quick reply to this message
 
Old 06-17-2012, 11:49 AM
 
Location: El Dorado Hills, CA
3,670 posts, read 7,972,766 times
Reputation: 3748
The condo docs are one of many disclosures you will need to read. Your contract should have a stipulation to cancel without penalty within a certain amount of times of reading through the documents.

FYI - many banks are not lending on condos that have current lawsuits pending against the HOA. Since you are paying cash, you don't have the lending requirement to get that information, but do make sure you ask and get in writing confirmation that the HOA does not have any pending lawsuits.
Reply With Quote Quick reply to this message
 
Old 06-17-2012, 11:53 AM
 
2,393 posts, read 4,856,485 times
Reputation: 4511
You can make an offer contingent on receipt of the condo documents and most recent financial report (not the "books"), with right of rescission within a few days if your inspection is not satisfactory.

(This is law, by the way, in some states).

Your real estate agent may not like it much but it is reasonable. You will probably want an attorney to do the wording.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top