Looking for pros/cons of prohibiting "For Sale" signs

Started by RebeccaB3 • 7 replies • 1718 views

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RebeccaB3 (South Carolina)
Posts: 16

Posted:

Our South Carolina HOA is considering prohibiting "For Sale" signs in the community. Our Covenants state “No signs or other advertising devices shall be displayed upon any Lot which are visible from the exterior of the dwelling thereon or on the Common Area, or in the facilities thereon, except as provided in the Architectural Review Board rules and regulations.” The ARB regulations state “Only approved real estate, 'for sale', signs are permitted by the ARB.” About 5 or 6 years ago, the ARB approved the style of “For Sale” signs currently being used. The community is still being developed (about 40% remaining to be built) and the developer has asked the Board to ban the signs because he feels it is hurting his sales.

I'm looking for insight into the pros and cons of banning something that has been allowed for a long time and the impact on current owners who had to buy the special signs which must be special ordered and require a 4x4 wood post and definitely cost significantly more than using the standard realtor signs that carry no cost at all.

I see the Board becoming engaged in violation notices and fining and creating bad karma with homeowners. On the other hand, the number of for sale signs could lead potential buyers to believe there are problems with the community. I would like to hear what other HOAs are doing and how it was received by the homeowners.

KerryL1 (California)
Posts: 14,550

Posted:

It could be, Rebecca, that your HOA may not ban for sale signs. Our covenants also state no signs of any kind. But our municipality says that for sale and for lease signs may not be banned, so it trumps our CC&Rs. The city limits the size to 4X4 and so do we.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Rebecca,

Just because the builder requests doesn't mean that the Board must approve.

As Kerry has said, you need to do some research into the applicable laws about real estate signage to first verify if such a ban can be done.

Personally, I'm surprised that the Board actually went as far as it did in specifying what style of for sale sign could be used. I think that that is a little extreme. Ours simply states:

Only one sign advertising a property for sale or rent may be displayed on a lot. Such signs must meet applicable County regulations with respect to size, content and removal. Signs obtained from a licensed Real Estate agent are considered to meet these requirements. No signs may be placed on the common area without prior approval.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By RebeccaB3 on 07/14/2014 8:47 AM
The community is still being developed (about 40% remaining to be built) and the developer has asked the Board to ban the signs because he feels it is hurting his sales.

Personally, I don't believe there is any real competition.

A new home can be "built to order" with flooring, cabinets, counter tops, painting, etc. just the way the new owner would like. A resale is just that. The new owner has to expect some wear and tear, another person's painting scheme, flooring, etc., and everything may not be exactly what the buyer would like and may have to be changed later.

Many people get the wrong idea about competition. If I wanted to open a shoe store in a mall, I would look for a mall that already had a couple of show stores; not one that has none. A person looking for shoes is going to go to the mall that has more of a selection; that is, the one with more shoe stores.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Rebecca,

Search you state laws. In Arizona statutes prohibit an HOA from banning a realtor's sign. (Realtors have a strong lobby.)

RichardP13 (California)
Posts: 1,767

Posted:

Quote:

Posted By BruceF1 on 07/14/2014 12:46 PM

Some malls have non-competition clauses in their contract.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

The declarant is being short sighted. Any thing that brings buyers into his neighborhood should be looked at as positive. His chance to sell a new with all the advantages/selections, etc. versus buy a used place.

Now if there are issues with many places for sale then I can understand, and maybe agree with, for sale sign restrictions.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By RichardP13 on 07/14/2014 1:25 PM
Some malls have non-competition clauses in their contract.

True. But my experience has been that such malls are normally best for those who have a "niche" or specialty business. My wife and I operated such a business in that type of mall. It worked for us because customers would travel for miles just to visit our store and make purchases from our vast selection of the type of merchandise they wee looking for.

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