A condo in Holland that I am interested has many units owned by the Assoc. Should I be concerned.?

Asked by James, Smith, KY Mon Jul 2, 2012

Condo located at 300 Farington .I am a cash buyer

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Susan Compag…, Agent, Holland, MI
Mon Jul 2, 2012
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Not really. That condo Assoc. has been around for a very long time, but I am not sure why they would own any units. Would have to research the sales history on those units. That Association should be stable, but I still suggest have a buyer's Agent represent your best interest. Your agent would do research for you on that issue and many other important factors, such as, the recent sold prices etc. Let me know if I can help. I do have a good friend who lives there and she has a really nice unit. She may even be thinking of selling as she is elderly. By the way, there is no charge for my Buyer's Agent services. I can be reached by cell/text 616-836-2603 or susancompagner@gmail.com
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David Arnold…, Agent, Holland, MI
Tue Nov 20, 2012
The main concern with buying in a condo project that has a lot of rentals or lots of units owned by one owner is a financing concern. Most banks will not lend money to a condo that has lots of rentals or a majority owner. Some banks will do a portfolio loan, where they hold the mortgage in house, but there will be a bump up in interest rates under that scenario. Since it is a financing concern, it also can become a resale concern. If a property is more difficult to finance, the number of suitable buyers is smaller, and this ultimately reduces demand. I think over time banks will become less regulated with condo rules, but it still needs to be a concern.
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Becky Hosley, , Holland, MI
Tue Jul 3, 2012
I would suggest if you wanted to write an offer, make it pending subject to see the financials of the assoication. That will indicate how much money is in the reserve funds for upgrades or repairs.
Let me know if you have any further questions.
All the Best!
Becky
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