Buying a Condo

Investing in Beach Real Estate 
 

    

When buying a condominium, you're required to become a member the Homeowner Association (HOA); hence, you assume an equitable portion of all assets and liabilities of the Homeowner's Association.

Homeowner Association: An improperly managed condominium can expose you to significant financial liability, especially if the Association is Owner Managed; while the Board of Directors of Owner Managed communities may be professionals, they generally do not have a background in real estate and community associations.

Common Property: Poorly maintained components such as the roof, building-envelope, elevators, etc. can cost HOA members $1000’s in assessments.

Legal: Pending legal issues such as lawsuits & foreclosures can result in hefty "special assessments" that the HOA members must pay.

Financial: A lack of financial planning by the Board of Directors can lead to an inadequate Reserve Fund, requiring current HOA members to fund the repair & replacement of major components out of their pockets.

Unique Beach Risks

Beach condos have unique challenges that general real estate agents might miss, and a home inspectors does not inspect, as they generally disclaim common property.

• Insurance Complexity: Beach properties often require separate policies for wind, flood, and general hazard - skyrocketing insurance rates for beach properties can cost HOA members $1,000's in special assessments.

• Salt Air Corrosion: The coastal environment eats away at concrete, AC units, and windows. An experienced eye can tell the difference between cosmetic rust and serious structural degradation (e.g. spalling concrete) that could cost the HOA millions to fix. 

I’m a real estate consultant & consumer advocate with a lifetime of real estate experience, I begin working in new construction and multi-family property before I could drive; additionally, I've owned, managed, sold and inspected real estate for 30+ years.. If you're planning to invest in a condo, I will be "your eyes and ears" - at no cost to you, contact me anytime.

  Wayne Moore
·  AL Lic. Real Estate Broker
·  FL Lic. Home Inspector, HI-7584
·  FL Lic. Community Assoc. Manager (Inactive)
·  Cert. Manager Community Associations, CAI 2001
·  Cert. Rehabilitation Inspector, SBCCI 1996
·  InterNACHI Certified Home Inspector, 2016
·  Cert. PCO - Termites-Household-Industrial, 1990
·  Commercial Real Estate Inspector, FREA 1996
·  FL Wind Mitigation Certificate, 2013
·  ASHI Certified Inspector, ACI 2004
·  FAA Certified Remote-Drone Pilot