Marki Lemons

Author, Speaker, & Consultant

Posterous theme by Cory Watilo

Filed under: condos

i want to buy a duplex down. the other 2 units in the building (2 & 3 fl) sold at $270k. How much more should the duplex be? it is 1st fl & - Trulia Voices

i want to buy a duplex down. the other 2 units in the building (2 & 3 fl) sold at $270k. How much more should the duplex be? it is 1st fl &

Duplex
Duplex
Home Buyer
Chicago, IL
A few hours ago - Home Buying in Chicago - 6 answers

garden?

via trulia.com
Duplex, Real estate is a local business and In Chicago a duplex condo is considered a single family attached unit and is not considered income property. When did the units sell? If the units closed in the past 3 months then an old rule of thumb would be to add 30% to the other units and that would put you at $351k. If the units sold more than three months ago you should have a CMA(comparative market analysis) performed to get a more accurate assessment of what the value is today. You should have the CMA performed regardless. The CMA should look at similar units that have closed in close proximity (less than a mile or closer) starting with going one month back in time (in one month increments) ideal up to three months. Web Reference: http://about.me/markilemons

If I buy a unit in a condo bldg, do I need to worry about extra costs beyond usual monthly assessments if many units are short sales and forclosures? - Trulia Voices

If I buy a unit in a condo bldg, do I need to worry about extra costs beyond usual monthly assessments if many units are short sales and forclosures?

Lori
Lori
Home Buyer
Chicago, IL
A few hours ago - Property Q&A in Chicago - 8 answers

Will each unit owner (bank or private) still legally have to pay their individual unit monthly assessment costs, or is there any chance that the owners in good standing would have to carry more than their load to keep builing upkeep and amenities intact?

via trulia.com
Lori, You have a lot to be worried about. First due to the fact that distressed unit owners fail to pay assessments there is a likely hood that the monthly assessments will increase in order to offset the debt of non-paying owners. There could also be the cost of pending and future special assessments. It would be advantageous to look at the financial for the association to insure they reserves and you want to also make sure the association will continue because in buildings with no association you risk not having insurance, scavenger service, and public utilities because of failure to pay. Also look for additional price reductions due to short sales and foreclosures which will create a reduction in equity. If more than 15%of the current owners are in arrears on their assessments most lenders will not finance a buyer to acquire a unit therefore, units will only be sold to cash buyers. Cash buyers are looking for deep discounts and they tend to be investor purchasers and will increase the number of tenants in the association. Everything mentioned above is direct or indirect cost of ownership.

HELP FOR CONDOMINIUM OWNERS AND ASSOCIATIONS

Kieth, thank you for the following information:

Hello Marki,

In lieu of the real estate market, we’re encountering a plethora of unit owners behind on their homeowner association (HOA) dues. This potentially depreciates the value of the other unit owners who are current because banks will not refinance or lend to other unit owners/buyers when too many units are not making payments. Moreover, if the person is foreclosed, the property may sale for significantly less in the future. And this will negatively impact the value of the other units, widening the gap between what is owed and the property value.

We’ve been 100% successful in having all unit association dues paid in full by executing a short sale for those behind on payments. Additionally, this helps stabilize condominium prices. If you own a condo or know someone who does, and there are certain unit owners who are behind on their respective HOA dues, please contact us.  We are willing to come to your next association meeting and discuss ways to salvage, maintain, and improve condominium values. For those out of state, we’d be available for a conference call.

 

Call us now to assist in making your HOA financially healthy and to protect you condominium value.

 

Regards,

Keith Fenceroy, JD/MBA

Legal Counsel

Keith@NexusDebtSolutions.com

www.NexusDebtSolutions.com