Questions to Ask a Condo Board
When you buy a condo, you will join an association of owners that determines everything from whether to plant perennials in the courtyard to how to finance a major amenity or roof project. There are stories around the country that are starting to report the problems with HOA’s including foreclosures, members not paying their HOA’s dues and depleted reserves as a result. Many of the condo associations in Western New York do not have FHA approval for mortgages, in fact there are only a few condos that are approved.
It is imperative that you ask the tough questions to the condo board that you are considering purchasing in. Reviewing at least two years of the minutes will give you great insight to the financial health of the condo. If you do not understand what you are reading; ask for clarification and check with your attorney before you go forward.
Read Also: Long Beach Condo Buyers Beware!
Before you purchase a WNY Condo, contact the condo board with the following questions. In the process, you’ll learn how responsive and well organized its members are.
1. What percentage of units are owner occupied?
- Generally the higher owner occupied percentage the more marketable the units will be at resale (unless you are in a resort community this will vary)
- How many condos are behind in HOA dues?
- Have there been any foreclosures in the Association?
2. What covenants, bylaws, and restrictions govern the property?
- Is there a grandfather clause in place?
- you may find, for instance, that those who buy a property after a certain date can’t rent out their units, but buyers who bought earlier can.
- Ask for a copy of the bylaws to determine if you can live with them
- How do you handle those that are behind in HOA payments?
3. How much does the association keep in reserve?
- How is that money being invested?
4. Are association assessments keeping pace with the annual rate of inflation?
- Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs.
- To determine if the assessment is reasonable, compare the rate to others in the area.
5. What does and doesn’t the assessment cover – common are maintenance, recreational facilities, and trash collection?
6. What special assessments have been mandated in the past five years?
- How much was each owner responsible for?
- Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board’s fiscal responsibility.
7. How much turnover occurs in the building?
8. Is the project in litigation?
- If the builders or owners are involved in a lawsuit, reserves can be depleted quickly
Condos for Sale in Western New York
Buffalo
- The Avant
- Buffalo New York Condos for Sale Market Report
- Buffalo Waterfront Living at the Rivermist Condos
- Downtown Buffalo Waterfront Living at Gull Landing
- Buffalo Waterfront Village Living at Portside
- Downtown Buffalo Waterfront Living – Admiral’s Walk
- Downtown Waterfront Living at The Breakwaters
Amherst/Williamsville
- Amherst Condo – Evergreen
- Amherst Condos – Versailles
- Williamsville Condos – Cambridge Square
- Williamsville Condo News – Hickory Hill Real Estate Market Report
Niagara County
- Niagara County Condos Market Report
- Niagara Falls Condos – Sutton Place
- Niagara Falls Condos Market Report
Other Areas
Interested in purchasing a Buffalo Condo? Want to sell your Buffalo Condo? Call Colleen Kulikowski today at (716) 650-0051 or fill out the form below:
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