Need Some Advice

We live in GA, bought our home in 2017, had an HOA and paid our dues upfront at closing. Afterwards, talking to a neighbor who has been here a while, he started to fill us in on the HOA and the history of the subdivision. Said it had been through a lot. The original developer had declared bankruptcy, after the 2007/08 crisis. There were to be 2 phases to this SD, phase one of 5 homes, and then phase 2 of more homes to be built, down the street. Phase 2 never happened. As I stated, he went bankrupt and some of his investors took over the SD/HOA and we never heard anything. Fast forward to about a year ago, we notice the land/area that was slated for Phase 2 is being built with homes a lot different than ours. Our homes are all brick, very nice homes with large lots (3.5 to 4 acres). The homes he is now building are about 1/2 acre, about 130 to 180K homes. We were worried that the very large lot across from our home would be next and sure enough, just recently saw that he is applying for permits for driveways and such to build 3 small homes, similar to the ones down the way. This is unacceptable to us and we want to know if we have any recourse! We have names of the current developer, have our HOA and also have a couple of neighbors that are concerned as well. Does anyone have any advice as to what our next steps should be? To me, if the HOA was in place when we purchased the home/land, then we should have some rights. We were never told that anything was dissolved, received no written notice whatsoever. If nothing else, why wouldn't he build a nicer home that is similar to the ones close by?? Would appreciate your insight. Thanks!

Home values are based on REAL #'s. They are based on homes that sale/foreclose for similar size/bath/construction in a few mile radius. Your homes being the size they are should stay as they are. The other homes should sell at what they are.

I say this because my neighborhood is older homes versus the newer larger homes in neighborhood next door. Those homes sell for upwards to 200K more than our neighborhood. They also sell for nearly 300K versus my former HOA's with smaller homes. So for me a smaller home not made of brick has no relevance on what can sell my house for. They are all in the same school district and doesn't matter much.

That is one of the risks you run when you buy into a community that is being built, and we saw a lot of it during the last housing crisis. Even a developer who remains solvent can change the types of homes being built. For one thing, buyers may now be looking for lower-priced homes. In addition, the developer would be looking to cut costs as much as possible.

I think that if current owners look through the paperwork they were given, nowhere will there be any sort of guarantee regarding future development. Anyone in business has to be free to react to changing market conditions - otherwise they won't stay in business for long.

Everyone on this board does "need some advice"- a more focused title may help get the help you want.

I don't think $150K homes should be directly across the street from $400K homes. Most subdivisions don't work this way. Most builders build homes of similar size, construction and price, and therefore the people buying are all "on the same page" so to speak. I think it's going to look crappy to have 3 rinky-dink homes across the street from a larger, totally different home. Not much I can do at this point. It will affect our resale value, for sure. We've talked to the builder and he's not interested in building larger, more "equal looking" homes. Very sad for us!

Debbie

Like or not or agree with it or not, you got caught. While I am sorry for you, it happened. Often buying homes is a learning experience. While of little consequence to you now, you now know. I got bit once on promise of what was to happen that never materialized. I learned.

Fool me once, shame on you. Fool me twice, shame on me.