This is not really a lot of money in reserve. Roughly you have $4300 per unit. If a major project needs done, it may not cover the cost and you would be required to pay a special assessment to cover the difference.
If this is a NEW project, then it will take a while to build up the fund. What is the condo fee? How much of the fee goes into the reserve fund?
Read the rules and regulations carefully. Check to see that they are being adherred to. THIS WILL MAKE A DIFFERENCE BETW. YOUR BEING HAPPY in your new home or not.
The below report is correct ... talk to the owners and find out if they are happy. Are they happy with the board, and the officers of the condo.
CONDO LIVING CAN BE GREAT, or it can be a problem if it does not fit your values. I have done both. I liked the condo I lived ini .. but I was the seller and the proeprty manager. I got to know the neighbors and they felt comfortable stopping in my home office to say hi or inquire about a problem.
Once I moved away, I stopped managing the complex and today it is sad, I get calls and complaints and my heart goes out to these people. I visit neighbors I made friends with and feel sad with the looks of the place and the fees were increased 3 fold since i left. I had the best landscapers and snow removers ... and, of course, they wanted to try their own choices. They changed snow removers 4 times one winter. Ditto landscapers. They needed to reroof a number of buildings, and for some reason the great reserve I managed to build up was depleted. So, the moral of this story is; IF YOU ARE GOING TO LIVE IN A CONDO, BE ACTIVE AND PARTICIPATE, SPEAK UP AND MAKE SURE RULES AND REGS. ARE BEING ADHERRED TO. Before buying, read the condo docs ... and carefully review the BUDGET. dbell4444@att.net

Marie,

This depends on how well the property has been maintained over the years, what its present condition is, and whether or not there are any major projects coming up.

Our recommendation to condo buyers is to come into the area in the evening and take a walk around striking up converstaions with people...ask them about the community...you will be suprised about the information you'll get. It may also be beneficial to speak with thr president of the HOA or one of the officers to get their perspective.

Good luck
The Eckler Team

Hi Marie:

Depending on the age of the development $70,000 may or may not be enough to cover the costs of needed repairs. The newer the development the less likely major repairs are going to be needed right away. Please see the link below, it may help to answer some of your conerns:

http://loan.yahoo.com/m/primer14.html

A buyer's agent would be a great asset to you, in helping to get the answers to all your questions!

The questions is what is the buget and how the condo association has planed to manage future maintence items and improvements. Contacting the condo association would be the best way to understand their plans for the future and see if any of the $70,000 is identified for projects.

Look at the executive summary and the full set of condo documents. That should give you a good idea of what is going on in the unit. I would consider finding a good buyers agent to assist you in your process.


Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield, Wisconsin

Marie, Is that a new project or an older development? New projects don't require as much in the reserve fund. If it is an older property, I would want to know the age of the roof and mechanicals. $70,000 would probably not cover the cost of a new roof. There is always a balance between higher condo fees verses reserve account balance. I would suggest calling the condo association president to go over your concearns.

Best,
Michael Henszey
Prudential ABSOLUTE REALTORS