The road to becoming a condo expert

Rick Bosl

• Associate Broker 12 yrs
• Licensed in VA, MD, & DC
• Created TheCondoHub.com
• Lives in a condo !
• $100,000,000 + in sales
• Lives in a condo !

Ground Rules

• Participate
• Ask questions
• Learn something
• Help me

What do you want to learn?

Quiz 1: Can you spot the condo?

Condominium:

• Con - connection
• Dominium - the ownership of property, especially, real estate

Quiz 2: Can you spot the condo?

Cooperative

• Title held by corporation
• Members have rights to individual units
• Common in DC and NYC
• Advantages - lower transfer taxes, screen members, fewer delinquincies
• Disadvantages - Financing limitations, more restrictive

Condo Hotel

Amenities

Amenities

• Front desk - hours?
• Fit center - equipment?
• Pool - indoor? heated? season?
• Party room - deposit?
• Services - dry cleaning? maintenance?
• Laundry room(s)

Condo Fees

Condo Fees - common

• CAM; Master Insurance Policy; Exterior Building Maintenance; Sewer; Landscaping; Snow Removal; Trash Removal; Water;

Condo Fees - less common

• Utils- Electric, Phone, Gas, Cable; Front desk personel; Doorman; Pool; Valet Service; Internet; Taxes; Underlying mortgage; Custodial Services

Condo Fees - Factors

• Size (number of units)
• Age of building
• Amenities
• Management - self run or professional
• Building maintenance

What affects value?

• Floor level - 1st discount; top premium
• View
• Layout
• Location in building
• Condition, updates & remodeling
• Keep in mind the things you can change and the things you can't change.

Condo Formation [new]

• Developer receives approval of project
• Construction begins
• Developer records Declaration of Condominium
• Developer records condo docs prior to first closed sale
• Developer maintains control of management & association until X % is sold.
• Owners take control and elect board.

Condo Conversion

• File proper documents.
• Depending on state, must give tenant first option.
• Example - Eastview & Westview

Condo Docs

Condo Doc Review Period

• VA - Resale - 3 Days
• VA - New - 10 Days
• DC - Resale - 3 Bus. Days
• DC - New - 15 Days
• MD - Resale - 7 Days
• MD - New -

Declaration of Condo [CC&R]

• Common elements - general, limited & reserved
• Par value of each unit (used to calculate condo fee)
• Unit boundaries
• Easements & other encumbrances

Bylaws

• Board formation
• Powers of board & officers
• Restrictions on use

Topics of concern in bylaws

• Pets - Allowed? Weight limit? Type? Number?
• Rental restrictions
• Noise restrictions
• Smoking
• Balconies/Sunrooms - What's allowed.
• Don't rely on what the listing agent or seller tells you. Verify in the docs!

Budget & Finance

• Do budget & actual expenses match?
• Is money going into reserves?
• Any special assessments?

Reserve Funds

• Money paid as part of dues that is set aside for unexpected and sometimes big ticket items.
• Reserve study or engineering study
• Special assessments

Financing Condos

Financing Condos

• Warrantable vs Unwarrantable
• FHA & VA approval

Lender Concerns

• Owner/Renter ratio
• Delinquent dues
• Commercial space
• Reserves

Working with Buyers

Questions for Buyer Client

• Size - #of BRs, BAs and sq ft
• Parking/Metro - Garage, outside, street
• Building age - W/D in unit?, Elevator ?
• Floor considerations
• Outdoor space - balcony or patio
• Pet policy
• Rental restrictions
• Particular amenities, views,

Showings - what to know

• Keys - where are they?
• Amenities - location & access. Fob, key ?
• Parking spaces - don't overlook.
• Storage - where is it? access?
• Views - by floor and by side
• Available units - including rentals
• Recent sales & trends
• Pet policy

Working with Sellers

Seller Tips

• Know your comps in the building - the differences in units and why they sold at that price.
• Know your comps from other buildings
• Label your keys and lockboxes.
• Know where to order condo docs.
• Sign restrictions.

Review

• What did you learn?
• What topics didn't we cover?
• What topics could have been explored deeper?

Questions

Partner Agent Program

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