Real estate expert Bonnie Heatzig says many buildings in Palm Beach County already have reserve funds in place, but some don’t, so it’s important for potential buyers to ask about reserve fund accounts before buying a condo. “It’s an essential question that everybody should ask whether it’s a condominium or homeowners association,” said Heatzig, the Executive Director of Luxury Sales at Douglas Elliman. “You first want to know whether there are reserve funds being held by the association and if so, how much, and what percentage are the reserves of the annual revenue budget? And all of those questions together will give you an idea of the financial health of the building.”
Heatzig says these questions become all the more important if the building is older.
“You would want to see a higher percentage of reserves being held if the building is older,” she said.