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Resale Value
The current trade value that could be expected for a unit on the open market, which is based upon a buyer making an informed decision arising from knowledge of various matters, including:
  • The condition of the assets.
  • The quality of maintenance and amount of deferred maintenance
  • The existence of a reserve study (depreciation report) to establish funding requirements
  • The balance in the reserve fund
  • A plan to address the expenditure forecasts.
A  reflection of the marketability and saleability of the units.


Percent Funded and Resale Value
"..when homeowners choose to purchase a specific condominium conversion unit over another unit, the choice of unit is directly affected by the amount of known future expenditures such as the condo dues and unknown but expected future expenditures such as maintenance reserves. A prospective buyer may make a conscientious decision in selecting a unit based on condo dues, but may not have sufficient information over the level of funding for maintenance. More to the point, multiple listing services (MLSs) typically report condominium dues but do not report the percentage funded for the maintenance reserves, making the purchase decision problematic. Since this information is not easily accessible to prospective buyers, then they may overlook the percentage funded as one of their decision-making parameters." (TX Simmons-Mosley)


Hedonic Regression
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Fig. Funding spectrum extending from underfunded (red zone) to full funding (green zone).

See also: