What documents should you definitely check before making an offer on a condo? Many people remember to check the inspection report but overlook the association's financial statements. To put it simply, this means you're looking at the condition of the individual unit without considering the financial health of the entire building it belongs to. If you're looking for a condo in Cheyenne, it's a good idea to include checking these financial statements on your final checklist before making an offer.

In Cheyenne, condo management fees generally range from $150 to $300 per month, with an average typically around $200 to $300. Among the smaller condo listings in downtown, there are cases where the management fee is as low as $168 per month. Cheyenne has a small market with limited condo supply, so older mid-sized buildings make up most of the inventory rather than large new constructions.

So, what exactly is included in the management fee? Basic services typically cover maintenance of the building's exterior and roof, master insurance, landscaping, trash collection, and contributions to the reserve fund. If the term reserve fund is unfamiliar, think of it as a savings account that the entire building contributes to in preparation for future expenses like roof or plumbing replacements. If this fund is insufficient when a major repair is needed, all residents will be charged a special assessment at once.

Wyoming does not have laws mandating reserve studies for condo associations. If there are no specific provisions in the association's bylaws, the decision on whether to save and the amount is left to the board's discretion. This makes the need to review financial statements even clearer. Without legally enforced minimum standards, there can be significant variations in management quality between buildings, and older, smaller buildings may have less robust reserve funds.

When obtaining a conventional loan through Fannie Mae or Freddie Mac, the association's delinquency rate, reserve fund status, and any ongoing litigation are also evaluated. If these criteria are not met, the condo may be classified as non-warrantable, leading to loan denial or unfavorable terms. Therefore, the order of checks should include the most recent financial statements, reserve fund balance, recent special assessment history, delinquency rates, and any restrictions on rentals and pets as stated in the bylaws, as well as the history of management fee increases over the past few years.

Since Cheyenne has a small market with limited condo supply, the size of associations is also small, and management practices can vary greatly between buildings. In smaller associations, it is not uncommon for resident representatives to handle accounting and maintenance directly without a dedicated management company, which means the financial statements may not be systematically organized. If you are looking to purchase for rental purposes, it is essential to first check if there are any rental restrictions in the association's bylaws. For older buildings near downtown, it is particularly advisable to closely examine the history of reserve fund contributions.

It is also a good idea to request the minutes from the association's board meetings. In smaller associations, these minutes often contain discussions about imminent large expenses, such as roof or boiler replacements, which may not be visible from the financial statements alone. Given that this area experiences long, cold winters, it is wise to also inquire about the history of heating system inspections. Minutes may need to be requested directly from the association representative or the volunteer board, so it is advisable to contact them in advance to ensure you can obtain this information.

If you are moving to Cheyenne from another state, you should also consider that property tax and insurance assessment methods may differ from your previous residence. If a Korean family is considering school districts, they should refer to GreatSchools ratings, but since school district boundaries change frequently, it is advisable to verify the assigned school for the specific address before purchasing. This article is not investment or legal advice, and it is recommended to consult with real estate and loan professionals before finalizing any contracts.