Flippers moving into older community

Started by LynnW5 • 8 replies • 410 views

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LynnW5 (Texas)
Posts: 2

Posted:

Would like feedback from members who have had ARX battles with flippers not wanting to follow rules around conforming colors and finishes. The opinion of the board is that these properties are obvious flips and devalue the surrounding homes. Any thoughts on how to prevent this?

KerryL1 (California)
Posts: 14,550

Posted:

Prevent flippers? No ideas.

Prevent rules violations? Do you have a way to fine violators of your rules or or ARC guidelines?

JohnT38 (South Carolina)
Posts: 1,631

Posted:

If anyone has an interest in raising the home's value it's a flipper. Unless you've been invaded by some incompetent flippers I'm not sure that I'm buying that they have devalued your home values.

A couple of years ago we had a rash of flippers picking up condos in our neighborhood. Some of these homes sold for top dollar so overall I look back and see it as a win win situation. We did have some run-ins with them regarding the hours they were working. I realize our experience may be different than other communities.

SueW6 (Michigan)
Posts: 814

Posted:

Are realtors being used? If so, grab them ASAP and give them the paperwork that outlines ARCs standards.

If these are being bought up by any other means, do some preventative communications as soon as you see life in the units ( workmen or other)

The board needs to be proactive instead of whining when all things are done.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Agree with other responders: vigorous enforcement of ARC standards.

Also agree that the whole point of flipping is to make money, so if anything flippers will be raising home values.

The real danger point is when a hot real estate market goes bust, as in 2008/2009. Many folks got into the business because it looked like easy money, and they overextended themselves by buying on credit. When the market crashed, they were unable to make their loan payments and unable to unload their now overpriced investments. Result: failure to pay HOA assessments and foreclosures.

Hopefully the next crash won't be quite as bad since "liar loans" and other abuses are no longer a thing. But as long as people are able to game the system in some way, you can expect boom and bust cycles.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Lynn

You need someone to ask questions as soon as they see work being done like did you get ARC approval for this project?

LynnW5 (Texas)
Posts: 2

Posted:

While I would agree with your statement, the bottom line for most if not all is get in get out and make as much ROI as possible. They are not really interested in the community or the possible impact of their bad design decisions. We aren't dealing with HGTV flippers sadly. What usually happen here is the property is not well done, they ask too much for it, it doesn't sell and then gets rented as a result. It's a bad scenario.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By LynnW5 on 02/03/2021 3:02 PM
While I would agree with your statement, the bottom line for most if not all is get in get out and make as much ROI as possible. They are not really interested in the community or the possible impact of their bad design decisions. We aren't dealing with HGTV flippers sadly. What usually happen here is the property is not well done, they ask too much for it, it doesn't sell and then gets rented as a result. It's a bad scenario.

What is done inside the house is not the associations concerns. What is done outside is where some associations have a say. I do not care the color of the kitchen cabinets. I might cae the color the house is painted.

KerryL1 (California)
Posts: 14,550

Posted:

So, Lynn, again can your Board not fine owners who oppose your ARX guidelines/rules??

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