By Condo Tribune Staff
Every time a unit sits on the market, the same excuse gets thrown around:
“It’s because of the lawsuits.”
But here’s the truth: lawsuits don’t sink property values – bad financial management does.
Any experienced real estate agent or lawyer will tell you the same thing: lawsuits are temporary. Buyers know that any legal costs are finite and typically translate into a one-time hit – usually a couple of thousand dollars per unit, at most.
What actually scares buyers away? High condo fees. And ours are among the highest in the region.
1. Why Lawsuits Aren’t the Real Problem ⚖️
Legal disputes happen in condos all the time. Any qualified buyer’s lawyer will explain that:
- Lawsuits have a start and an end.
- Once resolved, they rarely affect long-term resale value.
- Even if there’s a cost award or settlement, the numbers are predictable and finite.
A $2,000 or even $5,000 one-time cost isn’t a dealbreaker for most buyers. That’s manageable, explainable, and expected in condo ownership.
2. High Fees Are the Dealbreaker đź’¸
What truly drives buyers away is skyrocketing monthly fees caused by years of bad financial management:
- Our monthly condo fees are now well above the regional average.
- Buyers and their agents compare buildings – and when they see similar units in nearby condos with lower fees, they walk away.
- High fees don’t just affect affordability – they raise red flags about how the building is being managed.
High fees suggest one thing to potential buyers: risk.
3. How We Got Here 🧩
This isn’t about one lawsuit or one decision. It’s the result of years of financial mismanagement:
- Unnecessary legal battles that could have been avoided through negotiation.
- Questionable spending – like the infamous $178,000 stairs no one uses.
- Lack of transparency around reserve fund planning.
Instead of stabilizing our finances, the board’s choices have driven up costs, making our building less attractive to buyers.
4. What Buyers See 🔍
Before purchasing, every buyer’s lawyer orders the status certificate – and it tells them everything they need to know:
- The size of the monthly condo fees.
- Whether there are loans, special assessments, or reserve fund shortfalls.
- The corporation’s financial health.
Lawsuits barely register compared to these financial metrics. High fees, poor reserve funding, and heavy debts send a clear message:
“This building is a financial risk.”
That’s what keeps buyers away – not past legal disputes.
5. What Needs to Change 🛠️
If we want to protect property values and make our units easier to sell, we need:
- Better financial planning and transparency around spending.
- A strategy to stabilize fees and rebuild reserves.
- An end to avoidable legal battles that drain our resources.
Until then, expect buyers to hesitate – not because of the lawsuits, but because they can find better-managed buildings nearby with lower monthly costs.
Final Thoughts đź’ˇ
You can’t hide financial mismanagement behind lawsuits forever.
- Lawsuits end.
- Judgments get paid.
- Property values recover.
But high fees stick. And until the board stops spending recklessly and starts managing responsibly, selling your unit will remain a challenge – not because of court cases, but because buyers see the numbers and walk away.
