Archive for February, 2008
Get Rid Of Condo Special Assessments Once and For All
Categories: Finance, For Buyers, Hoboken New Construction
What’s the Maintenance Fee?
It’s interesting that when shopping for condos with buyers, the buyers are always attracted to condos with low maintenance fees. What is not often considered, is that maintenance fees can be too low. What does that mean? Well, the maintenance fee should be high enough to fund the ongoing operating expenses of running the condo (things like the management fee, if professionally managed, insurance, utilities for the common area, cleaning the common areas, etc.). In addition, there should be some ‘left over’ each month to fund the condo’s capital account which is used for long term improvements and repairs. This account is for items with a long useful life, like the roof, heating system for the building, elevator, brick face and so on.
Let’s Make Up a Budget
Often times, when a condo is built, the developer, in order to make the property seem more attractive and easier to market, sets the maintenance artificially low. Since there is no history, the budget is just made up. There are no past year actual figures to use in order to have a realistic budget. The building is ‘transitioned’ to the unit owners when the developer no longer has a controlling interest in the condo. The transition is supposed to happen soon after the majority of the units are sold and a new condo board elected. At that time, the new board ought to look very carefully at the proposed budget and make adjustments where needed. Having maintenance fees set too low will usually result in a deficit in the future. Without an adequate reserve fund, special assessments are required to pay for building operations and repairs. Most owners prefer to know what their monthly obligations will be and don’t appreciate getting hit with an unexpected assessment.
Show Me The Money
When a condo is sold, the buyer has the right to see the financials of the condo association. The buyer’s attorney should review these documents on the buyers behalf to see if the building is in good financial standing. Sellers of units that are in condo associations where the numbers are good, meaning there is an adequate budget and decent reserve fund, should let potential buyers know that.
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Hoboken Condos & Homes Inventory - What’s the Story?
Categories: For Buyers, For Sellers, Market Analysis
Hoboken Properties - Active, Under Contract and Sold
Once a week I’m going to publish the current activity for Hoboken condos, by size (1 br, 2 br, 3 br) and single family homes and multi family homes. It will be interesting to track if business is steady, picking up or falling off. So here goes:
As of Wednesday, February 6th, 2008 (as per the MLS)
Studio + 1 bedroom condos:
121 Active 48 under contract 1 sold
2 bedroom condos:
229 active 85 under contract 0 sold
3 or more bedroom condos:
39 active 12 under contract 0 sold
Single Family Houses:
6 active 3 under contract 0 sold
2 to 4 Family Houses:
17 active 9 under contract 1 sold
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‘08 Hoboken Condo Sales Numbers - See For Yourself
Categories: For Buyers, For Sellers, Market Analysis
Hoboken Condo Sales Remain Healthy in January
Despite what the media has us all believing, Hoboken condos are still selling well. There has been a slight downturn from 2 years ago - but not very much. Here is why I say that:
- Average asking price for January is higher than ‘06 or ‘07.
- Average sales price is higher than ‘06 or ‘07.
- The ‘discount’ went from 2% over asking in ‘06 to just 2% off list today.
- Price per square foot is up.
- Days on market is down from ‘07
- Number of units listed is down from ‘06 and ‘07 (less inventory!)
Draw your own conclusions!
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Eli Manning’s Superbowl Win is Good For Hoboken Real Estate Values
Categories: Crazy Ball
Eli Chooses Hoboken As Home - Adds Even More Panache to City
Thanks Eli for an amazing win! NY Giants quarterback and MVP Superbowl heros can live anywhere yet you are here in Hoboken. We love to see you having dinner at the Elysian, like an ordinary guy. It just makes us like you even more. We’re proud to have you in Hoboken. Another happy resident who appreciates the appeal of our City.
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