What to watch out for when you make an offer on a condo in Iowa City
So you've found the condo that's perfect for you and are all set to make an offer. You'll write up a purchase agreement and here in the Iowa City area we have an addendum where you get 5 calender days to review the homeowners condominium association documents. If you find something that doesn't suit you, then you can walk away from the deal. 
Here are a couple of things you should REALLY be watching out for:
Along with the condominium bylaws, (that you are going to read, even if they are "put you to sleep material"), you absolutely need to see a copy of the last couple of years financial statements. You want to know that the association is solvent and can pay for lawn care, snow removal, trash removal and other regular bills. You want to know that they have sufficient funds to pay their bills and there's not a special assessment lined up in the near future.
On the subject of special assessments, these do come up when it comes time to replace windows or a new roof. For you the condo fee is part of your monthly payment. If there's a chance of it going up from $70 to $200 a month for six months or a year to cover a major remodel, then you want to know about it ahead of time.
I can't stress enough how important it is to dig deep when gathering this information. Recently I spoke to a seller who felt jibbed, because he wasn't given this info when he moved into his home. He figured he could have gotten a nicer, more expensive condo and still had the same monthly payment if he had known what lay ahead for him. These fees affect your bottom line, so the more you know the better it is for you in the long run.
I'm a bit of a freak when it comes to details. (20 years living in Germany will do that to you!) I'm all over these things when I'm helping clients. I believe to make smart decisions you need all the facts. If you're thinking of buying a home in the Iowa City area, give me a call. One thing you can be sure of is that I am a great information gatherer and you'll have all the facts you need as you work your way through the home buying process.
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Please remember that opinions expressed in my blog are just that - opinions - not fact
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Although the information provided is deemed reliable, it's not guaranteed
