Steamboat condo sales—for buyers and sellers– are challenging for several reasons. HOA delinquencies have become a factor in some transactions, so make sure you read the documents carefully before you buy.
HOA dues cover the expenses for the common areas of the development. They pay the exterior maintenance, the landscaping, the snow plowing, the shuttle bus, the heating of the pool in the winter, and hopefully they put money into a reserve account to pay the big-ticket items when they come due. Some of the dues go toward common utilities like cable, trash, water, and occasionally heat.
When Steamboat condo owners fall behind on their HOA dues, here are some of the things that can happen:
- Services can be suspended or stopped. For example, pools may close during the shoulder seasons, or hot tubs can be closed to make up for budget shortfalls.
- Owners can be assessed to make up for shortfalls.
- Lenders can refuse to lend money in Steamboat Springs condo complexes with a high (15% or more) delinquency rate.
Cutting the budget can get an HOA back into the black until condos are sold and the new owners take over paying the association dues.
And buyers who pay cash or get financing from outside sources (like an equity loan on a primary home) can get some great values.
In summary, when you purchase a Steamboat Springs condo or townhome, make sure you read the CC&Rs, budgets and minutes closely to make sure the Association is strong, or at least managing the budget by cutting costs until new owners take over from delinquent sellers.
Interested in buying a Steamboat condo or townhome? Call 970-819-6372, or contact us.