Santiago

We just had this happen on a place we were selling, the owners (my sellers) were very hands on and collected the necessary signatures to ammend the by-laws, door to door, etc. Their association attorney was able to get the documents recorded within a day of the signature collection. The process took about a week in a 34 unit building, credit to the owners and a very capable attorney. This was the first FHA closing in the building, this closing would probably not have happened if the right of first refusal was still active. If you have any questions for your association, their association attorney was very helpful in this matter: Anthony Musilami from Musilami Law Offices (web site below). I hope this helps and good luck! - Tue Oct 28 2008, 06:56

There are too many intangibles to answer your question, talk to your realtor, or get one.
An appraiser looks at closed properties and looks at past sale history so you will know what's too high and what's the low, so you will be in the range.
A good realtor will negotiate and articulate a good argument that will help you make the history upon which other properties will be appraised at. - Thu Jul 24 2008, 20:25

Limiting the number of rentals is probably a good idea, and also having checks of all prospective tenants but not allowing rentals overall could come back and hurt you later. By not allowing any rentals you are limiting the pool of buyers and it could cost a sale, which eventually could hurt your price.

As an example, I am currently helping a family purchase a unit for one of their adult kids. The parents will be financing the home as an investment property, putting down a large down payment, as the young adult can't purchase something on their own right now, they will be responsible to take care of monthly expenses, etc, until they can purchase the property on their own name. Your condo association would not work because we have to be able to show the bank that this would be an investment property. Your unit would not be sold to this family that would potentially make a great addition to your association and on a tough market like this, it may lead to longer market time and possibly a lower price, which is what you were trying to prevent with in the first place. Don't throw the baby away with the bath water and make sure that your association has a way to qualify and screen owner's tenants and hold owners accountable for any damage, excessive noise, etc... - Thu Jul 24 2008, 19:29

This is a very tough market, if you do sign a listing agreement to sell, make sure that you are not responsible for any fees if the place does not sell or if you decide to take it off the market.

I'm very familiar with the building and the area and to be honest I think it would be very hard to get your price right now.

Ask your agent about any other P units in the market right now and how much they are going for, and any other P units that sold in the last 12 months and how much that sold for, and how she reasons the $165K price.

Most websites now let you search past sold units (mine does....), maybe do some searching on your own and see what you find. - Thu Jul 24 2008, 06:20

Samantha,

If you are moving in 2 to 3 years I would think long and hard about why you want buy. Your costs of buying and selling will probably be around 10% of the price, with transfer taxes, title charges, service fees, etc. So if you are looking to break even in 2 years the property must appreciate at 5% per year, if on 3 years then 3.33%. Also to consider that if you take a 30 year fixed mortgage you will have paid very little into the principal in 2 years, the bank is the only one with a secured return there.
I do see how appreciation can be huge if you strike gold in the right location and are there for a nice spike, but this approach always seems a bit like gambling to me.
There are a lot of merits to owning, even in 2 years, a life style choice, tax advantages if they apply to you, etc, but this is a decision that should be looked at seriously and carefully if your goal is not to waste money.
This is a great link from the New York Times, a great tool, hopefully it helps you:

http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAP…

Santiago - Thu Jul 24 2008, 05:50