I was challenged by a developer shill to back up my “wild-eyed assertion“ that assessments on new
condo construction tends to rise dramatically after the developer releases the building to the association.
Here it is:
In 2003 the average monthly assessment on a two bedroom two bathroom at Optima Views (a condo building in Evanston, IL) was $238. By the end of 2006 the average assessment is $370. That is a 36% increase in just three years.
For the record, I like Optima, Inc, they build a good product and have a good reputation. That however doesn’t change the fact that a buyer will pay a huge premium for purchasing a new unit, one I think is seldom worth the benefit of “new”.
To find out how we can help you use science and data to make informed decisions visit our Deerfield and Highland Park real estate office.
That same thing happens a lot here in Raleigh, especially with larger builder/ developers. I have known developers to subsidize management fees to keep them low and make them look attractive to buyers. Of course, as soo as they are gone the rates go up. We simply teach our buyers the range of what a management cost should be in order to maintain everything and anything outside that range is a red flag.
Posted by: Jason | February 05, 2009 at 05:03 PM
Joe zekas is an idiot. your youtube vids are better than his which no one comments on.
they are complementing them on cribchatter
http://cribchatter.com/?p=6295#comments
Posted by: Sabrina | February 11, 2009 at 11:19 PM