There are so many things to look for when making a purchase or selling your home. Aside from location which is very important; Are you on a quiet street? Does your home have good exposure? Is the school district the school you hoped for, etc. Once you have found or are ready to sell your home; What is the status of the homeowners association? What are the reserves? Are there pending repairs, assessments or litigation? Are the records up to date?
The specific criteria noted below is important for obtaining on loan a condo purchase or on the sale of your home if it is part of a homeowners association.
1. Has the builder turned over control of the HOA to the homeowners?
2. Is there any pending litigation against the HOA or builder?
3. What percent of the total units are primary residence or second home vs. non-owner occupied?
4. Are there any special assessments currently outstanding for the HOA?
5. Does any individual own more than 10% of the total number of units?
6. What percent of the units are delinquent in their HOA dues?
7. Does the commercial square footage exceed 20% (for mixed use buildings)?
8. Be sure to obtain HO6 insurance at the beginning of escrow.
I can help you make sure you are safe in your purchase and prepared for a smooth closing. As a Santa Monica real estate expert I can help you with your search and make sure you are making the right decision when reviewing the condos status. I can help you to get your home ready for sale, get it sold and complete a smooth sale without any surprises.
Be sure to check out my website www.TraceyHennessey.com for Market Conditions in your neighborhood.