Most sellers hope to get the transaction finalized at their asking price, but [...]]]> The Prescott and Prescott Valley real estate markets are obviously very volatile in the current economy. This fact needs to be considered when you are in the process of selling a condo, townhome or patio home and setting your desired price.

Most sellers hope to get the transaction finalized at their asking price, but depending on the market, this is often not possible. The reason for this is the glut of available properties for buyers to choose from, commonly called a “buyer’s market”.

Sellers who understand the market know that they cannot ask for a high price given the current conditions. Those who do not understand and insist on trying for a top price end up having their house on the market for a very long time.

We are experienced and have the tools to determine market conditions in your neighborhood. Therefore, although the decision is ultimately in the your hands, it would benefit you to listen to the advice of several real estate agents when setting a selling price for your property.

Please contact Patrick Schutte at 928-710-1717 for more information about selling your condo, townhome, or patio home in today’s buyers market in Prescott or Prescott Valley.

The difference in these types of homes primarily resides in the legal definition of ownership. In a condominium you own the air space within your walls while a townhome includes ownership of the land beneath your unit and the vertical airspace above. In layman’s [...]]]> What is the difference between a condo and a townhome?

The difference in these types of homes primarily resides in the legal definition of ownership. In a condominium you own the air space within your walls while a townhome includes ownership of the land beneath your unit and the vertical airspace above. In layman’s terms, a condominium typically has a neighbor above or below while a townhome does not. In the Prescott MLS, there is a distinction between the two and in the Search section you can search either of them.

What is similar about condos and townhomes?

While the legal definition of ownership may differ, a typical common benefit of both condos and townhomes in the Prescott area is the availability of common amenities such as pools, clubhouses, sports facilities, a Homeowner’s Association, and HOA fees.

Common Area Typical of Prescott Condo Market

What are Homeowner Association Fees (HOA) and how do they work?

The HOA fee is an amount paid equally by each owner to share common community expenses. These fees are usually paid monthly and vary depending on the amenity package and size of each community.

What does the typical HOA fee include?

Typically, the HOA fee covers maintenance of building exteriors, landscaping, pools/spas, roofs, blanket insurance, sewer, garbage, and water. Slight variations exist in the coverage from community to community. Make sure you read and understand what is covered and what is not and check with your insurance company to see how much coverage you need to augment to HOA policy.

What else does an HOA fee go towards?

In addition to ongoing maintenance like pool service, the HOA is also responsible for the maintenance of all common areas and often to roofs in a complex. Part of the HOA also goes towards a reserve fund that the HOA uses to fund major maintenance items such as new roof on the clubhouse. Make sure that you know the status of the financials of any HOA you are buying into. While there are many upsides to owning a condo or townhome, if you buy into a bankrupt association, you may have more out of pocket expenses than you may have planned for.

What is a Management Company and what is their role?

The Management Company is an independent company hired by the homeowners association to operate its business. Functions they handle include collection of HOA fees and special assessments, bookkeeping, payments of expenses, and hiring of contractors for community maintenance and repair.

Who is the Board of Directors and what do they do?

The Board of Directors consists of persons elected by owners in the community to govern the affairs of the development. The Board usually is made up of a President, a Treasurer, a Secretary, and two members at large.

What are the advantages to living in a planned community with a HOA?

People purchase homes in planned communities for the many benefits this type of lifestyle offers. Shared expenses of common maintenance items such as exterior painting and roofs helps to avoid major individual expenses. People frequently on the go often prefer ownership in a property with minimal to no exterior upkeep such as landscaping and pools. Finally affordability is a major factor in this form of ownership. Pools, spas, tennis courts, and club houses are often incorporated into the HOA fee.

What are CC&R’s and Rules & Regulations?

Covenants, Conditions, and Restrictions (CC&R’s) and Rules and Regulations are the governing rules of the complex.

Does a HOA prohibit me from renting my condo?

Generally a HOA does not prohibit an owner from renting out their condo. An owner must refer to the management company or CC&R’s to determine if this is allowed.

Do planned communities allow domestic pets?

This will vary among communities. The majority of subdivisions allow domestic pets such as cats and dogs. Some limitations may exist, therefore owners need to refer to the community’s governing documents or the management company.

Do I need homeowners insurance or is it covered in the HOA fee?

Most attached condos townhomes will have a blanket insurance policy that covers the structures for fire and hazard. This blanket policy is paid through a portion of the HOA fees. It is highly recommended to obtain coverage for the interior of your individual unit as your contents are typically not covered by the HOA insurance policy. Please consult with your insurance agent with additional questions.

Do you also assist buyers in purchasing single family homes?

Yes! We are a full service real estate team with many years of residential sales experience in all types of homes. Many times our customers come to us to help sell their current condo and purchase a single family home as their family grows. If you find a condo or townhome is not right for you, our same great service will help you to find a single family property to call home.

Amenities:  The grounds of a Condo or [...]]]>  Airspace:  That space in a condominium complex, which belongs to a unit owner. It is the area contained in a unit from floor-to-ceiling and wall-to-wall, measured from “paint-to-paint”, not allowing for thickness of walls, etc. The walls, which divide one unit from another, are “common elements”.

Amenities:  The grounds of a Condo or Townhome development may include such attractions as a swimming pool, spa, tennis courts, clubhouse, etc.

Architectural Controls:  Rules governing the exterior appearance of the complex.  Owners may be required to keep window coverings uniform, and keep only certain approved furnishings on balconies and patios. 

Articles of Incorporation:  Part of the package of documents which must be provided to ever purchaser of a Condo or Townhome.

Board of Directors:  Persons elected by owners in the development to govern the affairs of the development.  An association Board of Directors will usually include a President, a Treasure, a Secretary, and two members at large.

Budget:  Financial document presented for approval at the annual homeowners association meeting, which outlines the estimated expenditures and income for the upcoming year.  It also includes balance sheet information including the size of the reserve fund.  You should have read this document before buying a condo or townhome.

By-laws:  A document which explains how the affairs of the condominium complex shall be run. This is part of the package of documents which must be provided to every purchaser of a Condo or Townhome.

Common Areas:  Those parts of the complex, which are owned by all unit owners together in undivided portions.  Included would be all the elements of the building itself except for the airspace in each condo, the amenities, grounds, etc.

Complex:  A condominium or townhome community.

Condominium:  A unit comprised of airspace in a multi-family complex.

Condominium Ownership:  A fee simple interest in a particular unit plus an undivided interest in the common elements of a complex.

Development:  A complex or project comprised of Condominiums or Townhomes.

HOA: Abbreviation for Homeowners Association.

HOA Fees:  Sum of money payable by an owner, usually monthly, which represents a unit’s pro-rated share of common expenses.

Homeowners Association:  An association comprised of owners of every unit in a condominium or townhome complex.  With the purchase of a Condo or Townhome the new owner automatically becomes a member of the homeowners association with the right to vote on all matters regarding the complex.

Master Insurance Policy:  An insurance policy taken out on behalf of the homeowners association to insure all the common elements of the complex.

Planned Unit Development (PUD):  A community consisting of individually-owned homes and lots, surrounded by land for the common use of all owners.  The land and recreation facilities (if any) belong to an association whose membership is comprised of all owners of the homes and lots.  Membership is mandatory; each owner is obligated to pay a pro-rata share of the maintenance of the association’s property.

Property Management Company:  An independent real estate company appointed by the homeowners association to operate its business.  Its functions may include collection of homeowners’ monthly dues and special assessments, bookkeeping, payment of expenses, maintenance, repairs, etc.

Reserves:  Funds set aside for the use when a large common expense arises.

Restrictions:  Regulations pertaining to a particular complex which disallow certain factors or use, i.e. pets, persons who have not reached a stated age, etc.

Rules and Regulations:  List of policies which govern day-to-day living in a complex.  Some may be reprinted from the by-laws, others are established by the HOA board.  They cover subjects such as parking, noise control, hours and use of recreational facilities, etc.

Special Assessment:  When a costly repair or improvement to the complex is to be made, the funds collected in the monthly homeowners dues (or held in the Reserve Fund) may be insufficient to cover the expense.  To acquire the necessary money, each owner receives a special bill for a pro-rata share of the cost.

Townhouse (or Townhome):  A condominium unit of one or more stories in height which may be free-standing but is usually attached to one or two neighboring units by common walls.  Often the owner of this unit owns the land on which it stands and its roof.

Undivided interest:  The right of ownership in the common elements of a condominium or townhome complex which is equally shared by all unit owners.  This interest cannot be separated and conveyed by any one of them.

Unit:  That portion of a complex comprised of airspace which is owned in fee simple by the individual(s) named on the deed.

Voting Rights:  The right of the owner of a condo or townhome to vote on certain matters concerning the affairs of the homeowners association.