I
got a call from a seller on
Saturday wanting to sell their home and move in to a condo to save
money. They
found the perfect condo and were ready for me to come over and list
their home
and put an offer on this condo. (This was a cold call, I had never meet
them
until that day.)
So, I went over to their
property and they were ready, they had done
their
homework and this was the plan and they were sticking to it.
You see
they had a
home that was worth about $225,000 and they owed only about $110,000.
(Perfect
so far) They had planned for commissions, they had planned for taxes
and the
condo they wanted to buy was only $75,000, so they would have nothing
left, but
they wouldn’t have a mortgage payment.
I
pulled the comps on the
property they were looking at, called a friend who lived
in the condos
and
asked about the HOA and that is when I got hit with the news that I was
going to
have to share with this couple, that I’m sure they didn’t calculate in
to their
purchase. (THE HOA AND THE SPECIAL ASSESMENT)
I
sat down with them and
asked them all the important questions, like “Why are you moving?”
Their house
was the same square footage as the condo, the payments were only about
$800 a
month with taxes and insurance. So, why would you want to move in to
this
condo? So, their answer was good up front, but the news that I gave
them
stopped that sale right quick.
They
wanted to move because
they would no longer have yard work and very little payment because the
taxes
were so much lower and they were buying for cash. What
they didn’t
calculate
was for the HOA and the special assessment that was coming up in
December and
that is why it was priced so low. The present owner couldn’t afford the
special
assessment and was being forced to sell.
You
see, come this December,
the HOA is doing a special assessment of $15,000 and the HOA will be
$650 a
month for the next 2 years! Their payments on something
they owned
outright
were going to be close to the $800 they were paying now and the only
benefit
they would have had was the yard work was being done for them.
Don’t get me wrong, condo
living can be great, I’ve owned one for a
couple
years now while my primary residence is being remodeled.
But, you need
to be
careful and make sure you read the HOA minutes and know how much the
dues are
before you put an offer in on one.
For
more information about
purchasing a condo in the Beaverton / Tigard areas, please don’t
hesitate to
call or email me anything, I would love to help you.

Todd
Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739




©2009
Todd Clark -
Beaverton Oregon Real Estate and more: Down sizing from a house to a
condo as a way to save money... May not be the best choice!