Know the Association Before Purchasing a Condo in Branson, Missouri

Though this post is applicable to condos in Branson, it is really applicable to purchasing in any market with a strong presence of condos. Since buying a condo amounts to actually buying a pro rata interest in the maintenance of the entire property association, buyers need to be acutely aware of the health of the aforementioned association. Look over the condo docs and current bank balances to get a good idea, then ask some of the neighbors (or your Realtor!) to get an even better idea of how the property is run. Also, how do the dues compare to other similar properties around the area? — this will affect the marketability of the property in the future. In short, do your homework before encumbering yourself with a share of maintenance of the buildings and common elements.

What to Know Before Buying a Condo

Before you pull the trigger on a condo you think is a great buy, there are a few things you need to consider. Among these is a condo resale certificate. This document is issued by the homeowners association which states their current financial condition, bank balance, planned projects (if applicable), and other information you need to be aware of before you obligate yourself to paying a pro rata share of these costs.

If the condo is in a newer development still controlled by the developer, you need to make sure the condo development is “warrantable”, which means that the development meets certain criteria as deemed by most banks that would make loans or refinance loans in the development. These criteria include what percentage of planned units are completed, if planned amenities are completed, what percentage of completed units are sold, whether or not there is a nightly rental program run by the developer, and other information the banks and their risk managers deem pertinent to making loans that will have sufficient collateral in the event of default.

In conclusion, make sure of what you are buying before pulling the trigger on your dream condo. Give me a call at 417.337.1627 with any questions!