HOA Reserve Studies
Reserve Studies are a favorite tool in a Condominium Associations’ kit. These in-depth appraisals determine the present status of a condominium reserve, balance, and income (Financial Analysis). They also do this while evaluating the condition and replacement costs of deteriorating components, such as common area amenities (Physical Analysis). By quantifying present and future variables up to three decades, Reserve Studies present a long-distance, actionable, and sustainable plan.
Reserve Studies And Seattle Market Considerations
As one of the fastest growing cities in the nation (see footnote 1), it is significant to note that no new condominium developments opened in Seattle between 2011 and 2014 (see footnote 2). In addition, it cannot be overstated that condominium space remains at a premium, with potential buyers camping out overnight for a chance to reserve a newly-constructed unit (see footnote 3). The Seattle condominium market also struggles to keep up with an exponential growth in demand due to state laws that make it easy for buyers to sue developers over construction defects. As a result, this correlation leads to increases in insurance and legal fees, leaving condominium developers restricted to high-end construction where they can recoup the cost of risk (see footnote 4).
In conclusion, a Reserve Studies offer essential support for Condominium Association Managers as they navigate Seattle’s heightened and competitive market. Furthermore, you can reach out to the Lamb Hanson Lamb today for a complimentary consultation. Other information on Lamb Hanson Lamb’s Reserve Studies can be found on our website HERE. You can contact us for more information or to get other answers to your questions.
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