Position

Views on Special Assessments vs large Condo Fee Increases

Realtor

A realtor/owner would prefer a SA if it is less than $2500 to higher fees.  He added that he will probably sell and plans to ask his tenant if he wants to buy his one bedroom unit

Realtor

Higher condo fees depress the market and reducing buying power. An SA would have no affect on the buyer as it is paid by the seller

Mortgage Broker

No affect on the buyer. Although disclosed in Condo Doc, under-writers do not read them. Seller pays so no consequences to buyer. Higher condo fees, however, equals less actual buying power as the fee is a part of total allowable monthly payment.

Mortgage Banker

Would not directly affect purchaser as the debt to to ratio is what lenders use to qualify; not SA’s as they are paid by sellers

Realtor

Would be more inclined to do a SA than higher fees as condo fee is included as a part of monthly payment. Higher fees will cause buyers to look elsewhere; perhaps where there is no fee such as a fee simple property.

Realtor

No big deal: other condos have had them and you just pay them and move on. Associations should have in place a financing program with the banks to handle “equity financing” for the owners to facilitate any fees required

Mortgage Banker

Haven’t given this any thought but don’t believe it would impact a buyer as that is a fee paid by the seller.

Realtor

Either way it's not going to be pretty considering the current economic situation.  I keep going back and forth: increased condo fees vs special assessment? 

Realtor

I prefer taking a stab at the big debt now--just as a homeowner would—so that the community has options in future years and is better positioned in case some other unknown turns up