You are searching about Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question, today we will share with you article about Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question was compiled and edited by our team from many sources on the internet. Hope this article on the topic Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question is useful to you.

What You Need to Know About Selling Your Condominium in Today’s Market

In today’s California condominium market not only must the seller prepare the unit for sale, but the seller must be prepared with specific information about the home owner’s association – before listing. Do you as a seller know how many owners live in the association? Are you familiar with the Conditions, Covenants & Restrictions (CC&R’s) of your association? What about future assessments for planned maintenance work in common areas?

You’ve worked hard on painting your unit, cleaning the carpeting and possibly upgrading the countertops in your kitchen and bathroom, and you’re ready for buyers to take a look. Then maybe you get an offer from an enthusiastic and eager buyer and you open escrow and plan to close in 30 days. But wait, have you considered other issues that could affect your sales?

For example, did you know that having less than a 50% owner-occupancy ratio means you need to get an offer from an all-cash buyer? Unfortunately, many condo owners do not realize that with a higher number of rental units comes a lower probability of buyer mortgage financing. Many lending sources have higher standards than required under FNMA loan rules, and may require 70-75% owner occupancy before approving your new buyer’s loan. At a minimum, 50% owner occupancy is required for FHA loans (this only applies if your building is FHA approved, by the way). In a 32 unit building for example, 16 tenants may be too much. Lest you think otherwise, this situation is unheard of and is actually in a very high place where the owners do not want to let go of their units after they move into a family home. This presents many difficulties for owners who want to sell. If you wait until you are in escrow for the lender/buyer to find out, a lot of time is wasted and the transaction could be canceled. Wouldn’t it be wise to bring this issue to your Board of Directors so that the general membership can review the rental management policy?

Property owners should not live in oblivion while allowing their association’s owner ratio to decline year after year. This can mean the difference between selling a unit while it still has equity or as a successful short sale, or forcing one into foreclosure because the owner has no other option than their situation because no lender will provide financing and no cash buyer will be. found. A foreclosed unit in an association means a reduction in the collected dues of the owner and a possible increase in the remaining members, or at least a lack of contribution to normal operating costs. Additionally, the market value of all units in that association may be affected if it becomes impossible to obtain financing, or cash buyers bring “lowball” offers to a desperate seller. Typically, the lender’s HOA Certification submitted to the Board or property manager may ask how many are the owners, how many are the renters, and how many are the vacant units. You can avoid wasted time by contacting your Board or property manager in advance to obtain this information.

Let’s say the owner occupancy ratio is still good, but there are delinquent owners in the building, maybe due to job loss, or units that have been foreclosed. Did you know that if an association has more than 15% of its owners who are 30 days (or more) behind on their association payments, lenders are unlikely to make a loan until that number has dropped to less than 15%. In a small building of 30 units, that would only require 5 units. What if the particular owners are foreclosures held by a bank who do not pay dues until the unit is sold, or owners who have abandoned their units and cannot be reached? Has your Board of Directors proposed a remedy to help current sellers in good standing? This is the information you need to see the seller before you list your property. Why wait until you are in escrow and then find out that the lender will not proceed because of this issue? Also, your Board of Directors (perhaps the Treasurer) or your representative property manager should be able to provide you with this information.

These are two of the biggest issues a seller can face, but others may include whether your association has a reserve study–how much money is allocated in your annual budget for reserves? Ideally it should be around 10%. Has your association had an updated CC&R in the last 5 years, or are you still operating with your original documents that may be out of date with today’s laws? What is your building’s pet policy? Many buyers have pets and should know in advance what to expect, ie, two dogs may not be allowed, but one dog under 35 lbs is allowed. Are you aware of any litigation within the association? This is a disclosure asked of sellers in California where lenders have a direct interest in lending risk there, depending on the particular issue.

In a home owner’s association, the concept of “the greater good” is very close to the surface. Members of an HOA are bound by a particular legal umbrella found in the California Civil Code that does not exist in a non-association neighborhood. Condominium living was and is intended for owners who plan to live there, and it may not be good for landlords who have been away for a long time, because now more than ever, the transfer of these units is very controlled for the first time through mortgage lending. criteria.

For more real estate information please visit my websites. I will be happy to answer any questions about this article, or condo sales in general.

http://www.longbeachrealestate.blogspot.com

Video about Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question

You can see more content about Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question on our youtube channel: Click Here

Question about Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question

If you have any questions about Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question, please let us know, all your questions or suggestions will help us improve in the following articles!

The article Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question was compiled by me and my team from many sources. If you find the article Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question helpful to you, please support the team Like or Share!

Rate Articles Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question

Rate: 4-5 stars
Ratings: 7884
Views: 33825349

Search keywords Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question

Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question
way Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question
tutorial Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question
Double-Digit Cost-Of-Living Adjustment Isnt Out Of The Question free
#Selling #Condominium #Todays #Market

Source: https://ezinearticles.com/?What-You-Need-to-Know-About-Selling-Your-Condominium-in-Todays-Market&id=5135161