Home Buying in Greenpoint>Question Details

CmC, Home Buyer in Williamsburg, Brooklyn...

Are common chargers on new developments often estimated incorrectly? I am about to purchase a new condo and I want to know how realistic the $250 CC

Asked by CmC, Williamsburg, Brooklyn, NY Mon Apr 5, 2010

is or if it's just a number through out to entice buyers?

Help the community by answering this question:

Answers

2
CmC,

Common charges are estimated correctly unless it says otherwise in the offering plan. It's the Estimated Real Estate taxes you need to be concerned about. Does this building have a tax abatement already active or are they still waiting for an approval?

Sometimes when buildings do change CC charges depending on how many owners are living in the building, has anyone defaulted on their payments, does the building allow rentals (rent to own?), etc...

This is something you should discuss with your attorney to be absolutely sure. So while CC charges are accurate, they can change.
0 votes Thank Flag Link Mon Apr 5, 2010
Many lenders don't want to lend on the purchase of condos right now--especially new ones. One of the reasons for this is because they're so hard to value right now. Many lenders won't lend on condos in developments where the owner-occupancy ratio is less than 80%. Many lenders won't lend on condos where the HOA is in arrears. Many lenders won't lend on condos where the developments aren't FHA-approved.

If you're determined to buy a condo right now, then it's much better to buy one in an established community. Those are much easier to value, but your mileage will vary.

Anyway, the common charges on new developments are estimates, and those estimates vary wildly. Also, those charges are subject to various market forces. Keep in mind that the costs for building materials is in constant flux. The fluctuating gas/oil prices, the titrating flow of credit, and overall sluggishness of the real-estate market aren't helping the situation. However, that doesn't mean one can't create new models that will generate more reasonable estimates for now. You'll simply have to sample the data periodically, and adjust your projections according to the amount of risk that you're willing to accept.
0 votes Thank Flag Link Mon Apr 5, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer