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Follow on Google News | Thinking About A Condo? Know What You’re Buying--and Know What You’re Buying Into, Cautions MABAMass Association of Buyer Agents offers insights into the issues and challenges associated with purchasing a condominium.
“We see it all the time,” says Sam Schneiderman, president of MABA. “People want to buy a condominium because ‘it’s all taken care of.’ Many don’t understand the concept that when they purchase the condominium they become part of a condo association. They are partners in a business and the business is the maintenance and operation of the building. Condominium living can be great but it’s critically important for buyers to understand this before purchasing one – or they are likely to be disappointed.” Know What You’re Buying “First things first,” says Schneiderman. “Figure out exactly what you’re buying.” That, he says, means going through all of the building documents, floor plans and relevant municipal records to determine the precise square footage of the unit, where the boundaries are between the units and common space, and who owns the decks, porches, and other exterior spaces – if there are any. Likewise, if there are parking spaces, are they permanently deeded or assigned to the units? Schneiderman recounts how a few months back he was representing a couple who were interested in a condo unit in a three-family building in Brookline. The unit consisted of the condo itself and a back porch that had been converted over ten years ago into heated living space with an additional bathroom. When he set about to verify the square footage of the condo, what he found surprised even him. The back porch was not legally converted to living space and was still owned by the association. While marketed as some 1,800 square feet, without the “addition” Next, says Schneiderman, you’ll want to have a complete assessment made of the building itself. “Hire the best inspector you can find – one who knows condominium buildings and what to look for in the way of problems and defects,” says Schneiderman. If there are problems, you’ll need to know their full extent as they will impact on your negotiations with the seller and, ultimately, on your decision whether to buy the property or not. Know What You’re Buying Into “Understanding what you’re buying into is just as important as understanding what you’re buying,” says Schneiderman. “You need to find out about the people who live in the building – are they tenants or owners with a long-term stake in the building – and the association that runs the building.” Try to meet some of the folks who live in the building – especially if it’s a small building, says Schneiderman. “A condo building is a community – they’ll be living next door to you and, in all likelihood, co-trustees with you in the association. Best to know who you’re dealing with going in. If they don’t want to meet with you, that tells you something, too. It would certainly give me pause.” You’ll also need to take a good, hard look at the association, of course, prior to purchasing a condominium. Here, according to MABA, are some of the some of the key questions you’ll need answered. • Who are the trustees and what is their general approach in terms of taking care of the building (and your investment)? • Is the building self-managed or is there an outside firm involved in building management? • What is the financial condition of the association? • What are the condo fees for the unit you’re considering buying? • What is the history of assessments? • Does the association have a long-term plan for maintenance and/or upgrades to the building? • In addition to the master deed and bylaws, are there any rules and regulations currently in place or being contemplated? Based on the answers to these questions, you’ll need to determine if the building and the association are right for you. “If you go into a large, luxury building paying $1,400 a month in condo fees and living first class, if that’s not part of your value structure and you can’t justify paying it out, you’re never going to be comfortable there,” says Schneiderman. “Same thing at the other end of the spectrum; you may not be happy in a small building where you’re paying special assessments and having to pull teeth to get any work done.” “Buying a condominium is complex and time-consuming,” About the Massachusetts Association of Buyer Agents (MABA) Founded in 1990, the Massachusetts Association of Buyer Agents (MABA) is a non-profit organization of select real estate agents dedicated to the highest ethical standards of buyer agency. Less than one percent of the buyer agents in the state qualify for MABA membership. MABA agents advocate for buyers at each step of the process – from initial negotiations through closings – when purchasing a home or condominium. With their comprehensive knowledge, member agents are a critical resource to first-time buyers, those moving into the state through relocation, and repeat buyers seeking to streamline the purchase process. When working with home buyers, MABA agents’ allegiance is to the buyer only and their transaction – never to the seller, the seller’s agent or the listing brokerage company. For additional information on MABA and a free list of MABA buyer’s agents, go to http://www.massbuyeragents.org. # # # End
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