Why did you not purchase in a development?

TimB4 (Tennessee)
Posts: 21,062

Posted:

Previous threads discussed how an HOA can maintain or increase the “value” of homes or the “desirement” of the development.

To help illustrate what an HOA can or cannot accomplish toward those goals, I thought it would be good to discuss what factors had you not purchase in a development.

To identify why you did purchase in a different development, see the following thread: Why I purchased in my current development

TimB4 (Tennessee)
Posts: 21,062

Posted:

Reading the governing documents (you would be surprised what you find sometimes)
Review of Association finance statement (size of reserve, etc.)
Garages being used for storage vs. parking
(shows homes have little storage, sheds might be a problem,
could lead to parking issues in the future)
Narrow streets (will parking be limited, drivability for emergency services, etc.)
Types of fences in the area (is it the type I want)
Upkeep of homes in the area
Who controls the HOA (developer/owners)

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Now that more educated on HOA's I have done more research before considering buying. I take a look what my dues to cover. Plus how high they are. I monitor those in listings for raises in dues.

We do not have as many HOA here but increasing. I would buy into another one. Know to ask if there is one in place.

So far just not found too many interested in as I have to factor in dues as part of payments. Can buy a bigger house for some of those dues rates.

Former HOA President

GeorgeS21 (Florida)
Posts: 3,808

Posted:

HOAs decrease the number of old appliances in front yards.

Yeah - tongue in cheek, but sadly, not far off the mark.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By GeorgeS21 on 08/24/2020 8:33 PM
HOAs decrease the number of old appliances in front yards.

Yeah - tongue in cheek, but sadly, not far off the mark.

And that was why you didn't purchase in a specific development (HOA or not)?

JohnC77 (California)
Posts: 562

Posted:

I needed a place to park my 45 foot motorhome. Couldn't do it in an HOA.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Sorry, Tim.

What I meant to say was that I did not purchase in areas where there were no HOAs (or MRTA'd out of existence HOAs) because in those areas there were:
- appliances in the front yard
- idling semi-tractor trailers on the street and in the front yards
- uncared for houses and properties
- potholed roads (because those folks didnt even call the county to have them repaired)
- broken down signage at entrances
- lack of sidewalks
- run down appearance
- cars parked in front of the front doors because it is a shorter walk
- missing front yards
- motorcycles being rebuilt on the front porch
- pink painted brick with orange shutters
- consistently bottom of the market valuations
- higher crime rates
- etc

TimM11
Posts: 354

Posted:

As I described in the other thread, every home I considered when I was looking to buy was in an HOA by default, due to my price range. TBH, I think this drives a lot of resentment people have towards HOAs -- the idea that they have to live in one whether they want to or not -- but that's another topic.

I looked at homes in three different cities, all adjacent to each other, and all of which have strong municipal codes and and enforcement of such. Consequently, many of the horror stories you read about in some HOAs just didn't exist anywhere around here, because local governments were proactive about those kinds of issues and would take strong action if needed. These are also very low-crime areas for the most part as well, so that wasn't an issue I considered either. Finally, HOA amenities like pools and clubhouses aren't big things around here either, except in a few condo buildings, since local communities invest heavily in pools, water parks, municipal golf courses, etc. From what I gather, it's a different mindset from some other states where local government seems to do barely anything.

So, that really just left cost, location, and the interior condition of the townhouse/condo. I should also mention that I was looking during the winter (in MN), so it was hard to fully assess the quality of things like landscape maintenance. The places I ruled out were all due to one or more of those three things.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Quote:

Posted By TimM11 on 08/25/2020 6:48 AM
As I described in the other thread, every home I considered when I was looking to buy was in an HOA by default, due to my price range. TBH, I think this drives a lot of resentment people have towards HOAs -- the idea that they have to live in one whether they want to or not -- but that's another topic.

... snippage ...

Agree with this 100%. In my area, if you want new construction, you're pretty much obligated to buy in an HOA unless you can find a builder who is doing a "build on your own lot" program. The new home builder I work for does this periodically, depending on market conditions.

As for the topic at hand, the reasons I did not buy in other developments were largely things that are outside of a board's control:

* The age of the community
* The floor plans (I'm getting to the age where steps may eventually be an issue)
* Location and the absence or presence of supporting services nearby (want them convenient but not right next door due to noise, traffic, etc.)

BUT... there are some things that the board does control:

Shaky finances are a deal breaker, no ifs ands or buts.

I'd look hard for anything on social media. The presence of flame wars would make me steer clear, as could hints that perhaps the community wasn't being well run by its board.

Also, I'd like to know who the PM is. I'm familiar with the big players in my area and their reputations - some are better than others, and an incompetent PM suggests that the board may be incompetent as well since they chose the manager. Not a reliable indicator, but something to consider if there are other warning signs.

The presence of ongoing litigation is also a deal breaker. Unfortunately that's sometimes totally outside of a board's control, and it's one of the things that I consider a flaw of the whole HOA/COA concept - if you buy, you become the financial and legal partner of a bunch of people you didn't choose and have no control over. Lately I've come to view this as an unacceptable risk. That's unfortunate, because I think we'll be seeing a lot more condo communities in the future due to a growing population and increasingly unaffordable housing.

SheliaH (Indiana)
Posts: 6,964

Posted:

When I was looking, I didn't get into the financials until I came upon my current home. The reasons for rejecting the others were related to the lack of a garage (one had a detached garage the other had a carport, and neither were acceptable to me), size of the unit, location of the unit in the community and the sales price of the one I was more interested in (someone swooped in and took the house before I could make a counter offer).

Today, if I were looking, I'd pay a lot more attention to rule enforcement, as many of you have noted. You'd think you wouldn't have to tell grown people water heaters in the driveway and dog poo everywhere isn't a good look, but oh, well. I'd definitely look at the rental percentage if moving into a townhouse community (I don't think I'd ever move in a high rise condo) and take a close look at the last five years of the financials.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

SheliaH (Indiana)
Posts: 6,964

Posted:

Quote:

Posted By CathyA3 on 08/25/2020 8:38 AM

Posted By TimM11 on 08/25/2020 6:48 AM
As I described in the other thread, every home I considered when I was looking to buy was in an HOA by default, due to my price range. TBH, I think this drives a lot of resentment people have towards HOAs -- the idea that they have to live in one whether they want to or not -- but that's another topic.

... snippage ...

Agree with this 100%. In my area, if you want new construction, you're pretty much obligated to buy in an HOA unless you can find a builder who is doing a "build on your own lot" program. The new home builder I work for does this periodically, depending on market conditions.

As for the topic at hand, the reasons I did not buy in other developments were largely things that are outside of a board's control:

* The age of the community
* The floor plans (I'm getting to the age where steps may eventually be an issue)
* Location and the absence or presence of supporting services nearby (want them convenient but not right next door due to noise, traffic, etc.)

BUT... there are some things that the board does control:

Shaky finances are a deal breaker, no ifs ands or buts.

I'd look hard for anything on social media. The presence of flame wars would make me steer clear, as could hints that perhaps the community wasn't being well run by its board.

Also, I'd like to know who the PM is. I'm familiar with the big players in my area and their reputations - some are better than others, and an incompetent PM suggests that the board may be incompetent as well since they chose the manager. Not a reliable indicator, but something to consider if there are other warning signs.

The presence of ongoing litigation is also a deal breaker. Unfortunately that's sometimes totally outside of a board's control, and it's one of the things that I consider a flaw of the whole HOA/COA concept - if you buy, you become the financial and legal partner of a bunch of people you didn't choose and have no control over. Lately I've come to view this as an unacceptable risk. That's unfortunate, because I think we'll be seeing a lot more condo communities in the future due to a growing population and increasingly unaffordable housing.

I read a quote that stated moving into a HOA community is a lot like walking into a bar and becoming business partners with everyone there, so you're right on the money regarding the legal and financial partnership. That's why I personally would like to see banks and mortgage companies include the assessments as part of the mortgage. I know there are a number of reasons it hasn't and probably won't happen, but if it did, perhaps homeowners (from where we get board members) would pay more attention to finances and not be so damned cheap.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius