Monday, February 22, 2010

Condo vs. Condo

There are 1063 new and resale condominium units currently on the market at the end of January through the Bagnell Dam and Lake of the Ozarks Multiple listing systems not including villas and townhomes. How do you choose which one is right one for you?
After determining criteria like square footage, and number of bedrooms and baths you can locate the developments with units that fit your needs as well as your pocket book. Sounds fairly easy, however, in searching for a 2-3 bedroom, 2-3 bath, 1000-1800 square foot unit in the $150,000 to $200,000 price range you will still have 277 units to consider. Obviously, you can narrow your search to a more specific area and determine what amenities are important to you such as pools, tennis courts and clubhouses.
At this point you could easily still have at least 150 units to choose from. I’d like to give you some pointers that will assist you in determining which development will be the best value for you. Whether you are hoofing it on your own or you have enlisted the aid of one of our many fine lake area real estate agents, here are some questions you need to ask.
ASSESSMENTS: How much are they and what do they include? If it is a new, developer held project, do they seem exceedingly low? (If so, look for them to rise in the future). How much reserve does the association hold? (This covers unexpected items not in the budget and if the reserve is low, plan on a special assessment should any problems arise.) Are there past, current or future special assessments and what was the assessment for? If the association has voted to put in new amenities that benefit the development you may be able to consider it an improvement but if construction elements (decks, roofs, siding, etc.) are failing before normal expectations, you may be looking at a money pit not only in terms of the assessment but in a negative impact on the project in unit value and resale potential.
CONSTRUCTION: Quality products, excellent workmanship and attention to detail will require you to look beyond the surface and make certain that shortcuts haven’t been used that will cost you in terms of value and repairs down the road.
DEVELOPER: Who developed this project, other projects? Are they still involved? Are they still in business? Look for a solid, reputable builder with a good track record.
The Condominium Act will allow you to see a “Resale Certificate” and view budgets and assessments prior to closing so even if you have made an offer on a condo; you still have an opportunity to review these items. If you are still in the looking stages, wouldn’t you rather know of any potential problems before you are heading to the closing table and already have your heart and dreams set on a condo that is not in your best interest?
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact C. Michael Elliott & Associates 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

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