By Frederick Blum, Broker/Owner of Blum Realty Group
Say exactly what stage the work is at
Keep the inspection report, the repair plans, the permits, the construction records and the completion records as separate items. An inspection having been done does not mean the work it called for has been done. A contractor’s estimate is not proof that anything was finished.
Work out which findings apply to this condo and to the shared areas a buyer would use. Ask the association how its reference numbers map to the specific building, balcony, walkway or stairway.
Our SB 326 repair-record guide lists the documents a buyer will ask for, in order. Use it to pull the same records together before the condo goes on the market.
Connect the repair plan to the money
Gather the current estimate, the approved contract, the board’s funding decision and any assessment notices that apply. Ask which amounts the board has adopted, which are still estimates, and whether more work could change the cost.
If you plan to pay off an assessment at closing, find out exactly which charge that payment settles. It may not finish the physical repairs or cover every future cost. Our special-assessment guide explains that difference from the buyer’s side.
Go over how escrow will handle it, and the association’s own documents, with your advisers. Describe any payoff you offer at the amount and scope the records support, nothing more.
Be clear about what can be used and what is closed off
Find out whether any balcony, walkway or other area is closed off, and who ordered it. Get the current notice in writing and ask what it takes to lift it. Do not promise a reopening date on the strength of an informal update.
Use photographs and showings that show the condo as it is today. A buyer should not have to guess whether a photo was taken before the balcony was closed off.
If the work will carry on while the condo is listed or in escrow, coordinate access, the contractor’s schedule and what the association is telling owners. Pass any new, material update along to everyone working on the sale.
Get the records to the buyer’s lender early
A buyer’s preapproval says the buyer qualifies; it does not settle every question about the building or the unit. Ask the buyer’s lender which documents it needs and which conditions on the loan are still open.
For a VA buyer, the VA condo project and phase approval is a separate check. Do not call the unit or its repair work lender-approved just because the project shows up in an approval search.
Set a realistic timetable for the documents. A missing completion record, funding decision or lender answer is much easier to deal with before the buyer has planned around a closing date that nothing supports.
Price and negotiate on facts a buyer can check
Compare the condo with what it is competing against right now, allowing for what is closed off, the work still to come and the known costs. Do not assume an assessment lowers the value by exactly the same dollar amount.
Explain the records plainly during the sale. Do not market the condo as having no repair issues when the association still has open findings. Where a technical or legal reading is needed, get it from a qualified professional.
I can help put the presentation, the buyer questions and the pricing discussion together around where the association’s work really stands. A clear file lets a serious buyer and their lender make a decision they can stand behind.
Keep one dated set of the records you give buyers, with a short list of anything added later. If the association changes the scope of the repairs, the assessment amount, an access restriction or the expected completion date while the condo is on the market, send that update through the transaction’s disclosure process. A buyer should be able to see what changed between their first look at the file and their decision to go ahead. The California Department of Real Estate’s law reference sets out the rules on association documents and disclosures; the association, the responsible professionals and your transaction advisers should identify the documents that apply to this sale.
Questions condo sellers ask
Does a completed SB 326 inspection mean the repairs are complete?
No. Check each stage on its own: the inspection, the work it called for, the approvals, the construction and the completion records.
Does paying the assessment remove every buyer concern?
No. A payoff settles the charge it is applied to. The physical repairs, any access restrictions, future funding and the lender’s conditions can all remain separate questions.
Should the seller promise the association’s expected completion date?
No. Share the association’s current written schedule, with its status and what it depends on. Do not turn an estimate or an informal update into a guaranteed completion date.