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

Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)622-8739

 

 

 I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard.
All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.

 

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