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.
Thoughts on showing real estate clients looking for condos inferior apartment conversions, inferior construction, reasons to buy converted apartment condos
this new trend, I guess, of converting apartment buildings into condos? Would you show/recommend one to your client looking for a condo?
I have lived in these sort of "Garden Apt" complexes before when I was younger - and when they were apts. I remember all too well the pounding of the feet in the apt above me, and hearing almost everything in the apt next to me. The quality of construction in apts, I don't think anyone would deny, is far inferior to anything someone would purchase as a home.
I do know that they "freshen up" these condos by, maybe installing granite, etc...
But I just can't reason why ANYONE would by one of these, knowing the walls and ceilings are probably still like paper.
Jenbar, your post is a good one and brings up a very good question. Is home ownership always the desirable goal? With the boom of 2004 and 2005, we saw a lot of low end housing really take off. In my area, the low end inventory appreciated (by percentage) more than any other price range, and many of the homes became overvalued in comparison to the rest of the market. In my area, it was older mfg'd (mobile) homes and homes in really bad locations or very poor quality construction homes that were selling quickly and for more than they were worth. I really worry about some of those buyers getting burned down the road, especially in this softening market.
It's a little like buying Mediterranean or Baltic Avenue in Monopoly. They may be cheap, but they never bring you a good return on your investment.
Hi Jenbar, I'm not an agent but this type of thing is happening all over Chicago. Granite countertops, ss appliances, neutral paint colors, vessel sinks, and laminate (not real) wood floors are all over the place. With the exception of the layout, they all look exactly the same. Then they take out a wall or 2 to give this concept of an "open" floor plan but there is a huge difference between an open floor plan in a house and one in a condo. And on top of that, you may or may not even get a parking space! Before I bought my house, I originally wanted a condo. After viewing so many of them, they all started to look the same to me and the asking price just wasn't justifying the quality, no parking, etc.
In my view they are disasters waiting to happen. I have been involved in a grand total of one done as a favor to a good client who wanted a place to plant a grandchild she wanted out of her house. She is a well skilled commercial broker...so her wish was my command. I however strongly advised her to dump the place within three years or risk the loss of part of her investment.
The problem is that they are not built for the service intended. They need consistent and continuous maintenance to remain functional. You can't do that kind of maintenance in a condo complex. Nobody will pay for it.
Note that when things need fixing. as they will reasonably quickly in an apartment complex, you have to get a majority of the owners to agree. Lots of luck.
We have one that has gone badly wrong here in Vegas. Has turned into a swamp eating the investment of those who bought. It was the subject of a CD thread a while back. Mostly I don't care because they were out-of-towners trying to flip on the cheap. But I do bleed a litle for the 10% of the units that are owner occupied. Those poor folks are going to be forced to walk away and leave whatever they invested. It is also going to be interesting to see how an upper middle class master planned community deals with a semi-slum in the community. I can hear the soccer moms bleeiding about the perverts renting with secition 8 assistance next to their tract...and with ID cards to get into all the community faciliities.
I think it will be particularly interesting when the obvious defects surface and the conversion owners sue. Almost all of these places were developed by throwaway LLCs and, in Nevada, the statutory guarantee on a place runs ten years from first construction. Many of these places are over ten years old.
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.
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.
When is a Bargain not a Bargain?
