12 Condo Fees Facts
...as I see them
*Right or wrong, some buyers will reject a building with high condo fees. However...
*Most buyers will look at their
total monthly cost in determining their financial reach in terms of a purchase.
*Educating a buyer about the purpose of condo fees often tempers a buyer's aversion to higher fees - most buyers simply do not grasp the concept of condo fees and how they are determined.
*It is not uncommon for there to be an
additional condo fee for a parking spot and sometimes that number can be super duper high (often as high as neighboring rental garages).
*Condo fees are not tax deductible
*Condo fees in Co-op buildings include the taxes
*Almost every buyer will pay approx. 2 months worth of condo fees into the kitty (aka- reserve fund) at time of closing. This goes to the association, not the seller.
*An additional burden to condo fees is called the special assessment. No owner likes them, but everyone benefits from them in the long run.
*All condo fees are based upon the square footage of that particular building. All. Period. Stop asking me that question :-)
*Super duper low condo fees are NOT a good thing. Usually means your building is running on fumes with no emergency reserves.
* A reflection of a building's health is how much money it has in it's reserves (which can stave off future assessments).
*Newer buildings tend to have less money in their reserves as the life expectancy of some of the larger common elements / ticket items (roof, windows, elevators, etc) have little or deferred maintenance.