I have been, and continue to be amazed at the offers I receive on condos I have listed and there is no contingency for the buyers to review the current financial statement. There is always a contingency for the buyer to review the decs and bylaws, which is good, but there is rarely a contingency to review the financials.
The decs and bylaws are documents that should be reviewed by anyone buying a condo because those documents will tell you:(to name just a few)
*what you can and cannot do on or around or to your property
*what percentage of votes are needed to amend the bylaws and what the proper procedure is
*whether or not you can lease the condo (very important to know)
*exactly which items are covered by the association..roof? windows? concrete walkways and driveways? overhead garage door?
But as important if not more so is the financial health of the association. To my thinking it is critical that anyone buying a condo should make their offer contingent upon the review of the most recent financial statement of the association. That document should tell you how much has been spent on snow removal, landscaping, exterior upkeep (siding, gutters, windows, if applicable). But it will also tell you how much money is in the reserve fund. This is especially important if the condo you are buying is older. Why? Because if it's older it's going to need a new roof soon, or new siding, or new gutters. etc... The average cost for a roof for a 1500 square foot unit (in Cleveland Ohio) is approximately $7000. If there are 100 units then $700,000 will be needed for roofs.The good news is that those 100 units were not all built in the same year so they will not all need new roofs in one year. But one thing is certain. As the complex ages ,money will be needed to replace roofs and for other exterior improvement/replacement and therefore you want to see a healthy reserve fund. If the fund is not healthy, then it is likely that each homeowner will be assessed to help offset the cost of the improvement and sometimes it can be several thousand dollars.
If you are buying a condo, make sure you include a contingency to review the current financial statement. If you find it difficult to understand (and some are quite complex) find an accountant who can help you understand it. It will be time well spent.
If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate. Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.
 |
 |
 |
