Realtor indispensable when buying apartment in a VvE
The broker as a guide in the VvE maze: indispensable when buying an apartment
)
The Amsterdam housing market is raging and overheated. Buying a home in the capital requires quick action; there is still overbidding and awarding on the basis of the most favorable terms. When buyers find an apartment that meets their needs and has not yet been snatched from in front of them, they already have one foot in the finals. And then? Then comes the less visible world: that of the Owners' Association (VvE). This is precisely where the added value of an involved and knowledgeable apartment buying agent comes to the fore. Because what is actually being offered?
Why the CoE is as important as the location
While many people pay attention to the location, number of rooms and finish of a house, the health of the condominium association is at least as important for the enjoyment of living - and the financial risks. When you buy an apartment, you become the owner of an apartment right. This means that you become co-owner of a building and acquire the right to use part of it. So ownership does not stop at the front door in the stairwell. And neither do the responsibilities.
Meaning:
co-pay for maintenance
co-decide on major expenditures
Be bound by household rules that have already been established
So the health and professionalism of the CoE are crucial.
)
CoE documentation: the paper puzzle
CoE documentation is often voluminous and technical in nature. You might call it boring. Consider:
minutes of member meetings
the multi-year maintenance plan (MJOP)
the subdivision deed
the budget
the financial statements
It is difficult for an average buyer to assess what the contents of these documents really mean.
"...And what does it matter that there's not that much money in the CoE's coffers? That apartment has a huge roof terrace! Summer here we come."
A real estate agent with experience in apartment law and associations does know what is relevant and where the risks lie. Has approval for the roof terrace been granted by the VvE? And by the municipality? Who is responsible for dismantling and rebuilding if the roofing needs to be replaced?
How a buying agent pokes through the MYP and annual reports
The MYP, which lists planned maintenance for the coming years, comes in many forms. On the back of a beer mat, an excel sheet, copied from the neighbors or a condition measurement carried out based on the NEN2767. At first glance, it looks like a list of paint jobs and roof inspections.
"This coming year no maintenance costs are expected, so it's fine."
Those who look deeper will see if the plan is realistic:
Are current cost trends taken into account?
Does it match the state of the building?
Is there sufficient financial room to implement the plan?
The financial statements also offer valuable insights:
Is the reserve fund adequately filled?
Are there any overdue payments?
Is structural spending more than budgeted?
Signs like this are cause for a buying agent to ask further questions - and sometimes warn.
Not just bricks and mortar: the dynamics within the CoE also count
In addition to the financial and technical aspects, internal relationships play a role. Minutes of membership meetings say a lot. Are decisions made or endlessly postponed? Is there harmony or disagreement? Is there an active board? Does it fulfill its duties?
A buyer checks the distance to the supermarket, but a real estate agent looks at the character of the community. Is it a vigorous association or rudderless? Especially in Amsterdam, where many buildings date back to the 19th and early 20th centuries, CoEs are often diverse in composition. This can lead to divergent interests, which do not always meet well.
A buying agent helps assess whether a buyer is comfortable in this context - as well as whether there are realistic prospects for good maintenance and stable VvE contributions.
Prevention is better than litigation
A purchase broker is not there just to negotiate or recommend an appropriate offer. In the case of VvE homes, he or she fulfills a monitoring, signaling and sometimes warning role. The broker recognizes and names the Red Flags.
Problems with CoEs often only come to light later - for example, when a high additional contribution is charged or a conflict arises over items that were "all approved by the CoE." Anyone can request the mandatory list of documents. But timely and expert analysis and assessment is where the difference lies.
If unclear, the purchasing agent can inquire with:
the selling party
the association manager
a building inspector
or a lawyer
...before he/she makes an offer for the buyer
The buying agent as a stable factor
Buying an apartment is, for most people, the biggest financial decision of their lives. In an overstrained market, the emphasis is often on speed, but that is precisely why it is important for someone to keep calm, not lose sight of the details and guard the interests of the buyer.
After all, what is the buyer's interest? Finding a home, no matter what? Or finding the right home?
Ultimately, a beautiful home can be bought in an hour, but a faulty CoE results in years of hassle.
Need help assessing a VvE?
An MVA buying agent knows exactly what to look for when buying an apartment. Want to make sure you don't encounter any surprises? Find your buying agent at the MVA.
)
About this blogger
Bjorn Brandhorst is a partner at Delair Vastgoedbeheer. This professional VvE management office manages over 1,400 VvEs, 80% of which are in the capital. With over 25 years of experience, they know the ins and outs of Amsterdam's BoEs.
Would you like to get in touch with Bjorn? Or advice from one of his 30 colleagues? Then please contact Delair