Real Estate Question: Assessment, WTF?

Deebaser

I'm having trouble parsing the language in this listing and the broker isn't responding as quickly as H/A .

Extremely low maintenance presently includes $100 assessment to be discontinued early 2010. Does this mean that maint is going up or down in 2010. $532 a month makes this little look acceptable, but for $732 they can suck a silly goose.

http://realestate.nytimes.com/sales/detail/185-1029045/254-EAST-7TH-STREET-New-York-NY-10009

matt has a problem

If my grasp of the English language remains true, and I believe it does, it means that the current "extremely low maintenance" cost has a $100 assessment that is being discontinued in early 2010. So, going down. But, I doubt they're having things assessed every month, so something tells me that $100 is a yearly thing, not monthly, meaning it would only go down about $9 a month, not $100.

Honestly I'd just wait for the broker to get back to you.

Daenris

That language would indicate to me that yes, there's a $100 assessment currently in the maintenance price that will be removed early this year, dropping the price by $100, but I don't think I'd act on anything without having a definite answer from the listing agent, and make sure you have in writing somewhere that the assessment is actually ending if you decide to move on it.

edit: ah good point about the yearly/monthly thing as well, definitely another thing to ask the listing agent.

NailbunnyPD

Condos implement an assessment to either pay for an expensive project, unanticipated expense, or to re-establish reserves. These are temporary, and add to the existing fee. When it expires, the assumption would be that the rate drops back to $532.

If you're serious about this place, get the condo documentation for the past year, and read it to get a handle on how the building is being run. The documentation should tell you what their financial reserves are, and the financial activity for the past year. How are they spending the building's money?

illig

Yep, definitely check out the financials of the building in question. (This is where an experienced real estate lawyer would be helpful)

The assessment is typically a monthly payment for a set period of time, so the records check will let you know if this is a rarity (due to a one time unexpected expense) or a common thing (due to the building having a low reserve fund)

Also, keep in mind that if $100 makes the difference between the place being affordable and not, you need to realize that maintenance has a nasty habit of going up every year. And you might soon hit that extra $100 monthly outlay without even having an assessment.

Deebaser

Thanks all. The silly goose broker still hasn't gotten back to me, but extra research confirms that it'll be $532 after assessment.

@illig: It isn't a question of affordablility as much as it is that the property is pretty cool at $532 CC/maint at the price, but rather 'meh' at $732.

Thank you all for input/info

/solved