While searching the inventory for condominiums for a client of mine who desires a place in Lincoln Park, one particular building kept coming up over and over again. So often, in fact, I was curious to see just how many units were actually for sale in the building.
The building has 133 units. Of those, 21 are for sale. That’s roughly 19% of the building for sale – right now. And of those for sale, 18 appear to be short sales.
Mind you, short sales can eventually become foreclosures. They demonstrate some level of financial distress on the part of the owner.
This also begs the question: what would happen if fully 19% of the owners in a particular building were to be delinquent in their assessment payments? It does not always follow that just because an owner is not making mortgage payments that they are not making their assessment payments. Oftentimes owners continue making assessment payments in order to keep their personal business from the other members of the Condo Board or the Management Company. Usually so they’re not embarrassed by having their neighbors know much about their personal business.
Definitive answers could be obtained by delving into the financial documents for the association. But normally that’s the kind of due diligence one performs when they’ve identified a particular unit that they really want to buy.
In this instance, I’m trying to decide whether it’s even worth showing a unit in the building to gauge whether my client is even interested in the place.
Agents, what might you do? Buyers, would you want to see a unit in a building in this situation? Your comments are welcome below.