1. Low Reserves
A building with little money saved for future repairs may eventually need a special assessment.
Review the reserve study carefully.
2. Repeated Special Assessments
One assessment does not necessarily indicate a problem.
Repeated assessments may suggest poor planning.
3. Insurance Problems
Insurance has become an increasingly important issue for California HOAs.
Understand what the master policy covers and whether premiums have increased significantly.
4. Deferred Maintenance
Roof.
Exterior.
Elevator.
Balconies.
Windows.
Plumbing.
Major repairs can become expensive quickly.
5. Litigation
Pending litigation can affect both risk and financing.
Understand what the dispute involves before moving forward.
6. High HOA Dues Without Clear Value
A high monthly fee is not automatically bad.
But buyers should understand exactly what they are paying for.
7. Rental or Ownership Restrictions
If you may eventually rent the condo, review rental rules before buying.
Do not assume you will have unlimited flexibility.
The Bottom Line
When you buy a condo, you are buying more than the unit.
You are buying into the financial and physical condition of the building.
Beautiful countertops cannot compensate for a poorly managed HOA.
Matt Woebcke
Senior Sales Associate
Vanguard Properties
415.553.0206
MattWoebckeRealEstate.com
The Right Address Changes Everything.