Forty-five management executives offer their answers to questions that buyers are asking and that boards need to answer.<\/p>\n
Definitive Guide to Questions that Buyers Are Asking and Boards Need to Answer<\/strong><\/p>\n Depending on whom you talk to, the real estate market is picking up, is still pretty slow, or is poised to significantly move. There is more market movement this year than last, and many shareholders and unit-owners are trying to sell. Peek behind every potential sale and you\u2019ll find someone doing due diligence. That is the thrust of our 27th annual \u201cManagement Leader\u201d survey. Forty-five management executives participated, responding in two ways. First, they answered the question: \u201cIf you were buying into a co-op or condo building, what are some of the key areas that you would evaluate, and why?\u201d<\/p>\n From that, we created an \u201cApartment Buying 101\u201d list of the most-mentioned due diligence questions. We video-interviewed the execs about these questions and edited the responses into 14 video pieces. You can scan the accompanying QR codes to watch them on your smartphone or type in the URLs to view them on your computer. <\/p>\n So, whether you\u2019re on a board that is being scrutinized or a buyer doing the scrutinizing, read, watch, and learn.<\/p>\n MARK HOFFMAN<\/span><\/p>\n Principal<\/em><\/span> If I were purchasing a cooperative or a condominium, I would focus on three main areas. First is the underlying financial condition of the building \u2013 are they budgeting and operating properly, and are they planning for any future capital projects? The second area is the physical condition of the building \u2013 is it being properly maintained? I would walk the common areas and even ask to look at the boiler room. I would investigate the age of the major building systems \u2013 roof, boiler, etc. \u2013 to get a sense as to what work would need to be performed in the mid- and long-term. Finally, I would learn about the policies and procedures of the building for alterations, refinancing, sublets, etc. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Forty-five management executives offer their answers to questions that buyers are asking and that boards need to answer. Definitive Guide to Questions that Buyers Are Asking and Boards Need to Answer Depending on whom you talk to, the real estate market is picking up, is still pretty slow, or is poised to significantly move. There<\/p>\n
\nWhat\u2019s being looked at? Financial statements, reserve funds, building litigation, arrears, assessments, maintenance, capital plans, and bed bugs, to name just a few areas. How potential purchasers view your co-op or condo\u2019s operations can make or break deals for its residents. <\/p>\n
\nHoffman Management<\/em><\/span><\/p>\n