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Posted By BancsS on 10/01/2021 5:41 AM
I am eager to hear when you make a decision and how you came about that decision. I think other forum members may benefit from your experience. The really hard part is how do new homeowners know what he or she is actually getting in to. You may have been given all of the documents about the HOA but there is so much more to it than that. It's difficult to know the dynamics of the HOA Board. I didn't have a clue when I bought my current house. I had never lived in an HOA before and my thought process at that time was, I am a responsible homeowner, pay my bills, and I keep my property in good condition, and I get along well with people. What could be the problem with living in an HOA. Wow was I wrong about that one. But as time went on the Board changed dramatically and things got much better. So it can be a crapshoot. And things can change as time goes on. As PITA used to always say "caveat emptor", buyer beware. When I search for my new home, I will keep that forefront in my mind. If something doesn't look or sound right go with your gut.
You and I are perhaps on the same page on a lot of issues when it comes to deciding whether to buy into another HOA/COA? Do consider starting a thread on your own adventures. I will then add mine. TomP11, sorry for the hijacking here. If this goes on much more, I will start a thread in a few weeks about my adventures.
I think I am at least several steps and a few weeks away from any possible disclosure, say. I hope to be re-located (belongings in storage) within the next ten days.
I just checked the statutes where I will be living. The state has a condo statute, with some sections applying to all condos and others applying to condos built only after a recent year. The statute borrows heavily from the uniform condominium act. I think this is also good.
PatJ1's, CathyA3's and JohnT38's reminder (that a decently run HOA/COA today could easily change to a poorly run one tomorrow), is a good one.
SheliaH's line (re-posted by CathyA3) is a good one.
Things I will check for:
-- Is the townhome community subject to the condominium act, in part of in whole (depending on the year the townhome community was established)? Many a time I see townhomes not subject to the state's condo statute.
-- For reserve funding, the state requires pretty much only disclosure of the amount the COA has in the fund. I will ask for the most recent reserve study. If the reserve study is less than three years old, and in about seven minutes, I feel I will have an idea about whether the COA is financially healthy; charging the right amount for the assessment; et cetera.
-- I may seek the last six months of board meeting minutes. If there's gossip in them, this is a red flag.
-- Of course I will check the online court records of lawsuits and see what the COA has been up to in the courts. A record of lawsuits (other than foreclosure proceedings) in recent years is a red flag.
-- I keep in mind CathyA3's interesting counsel about moving often. CathyA3, is this partly to avoid being around when, say, a large special assessment is imposed and many owners cannot pay it, or the COA has to get a loan.
-- Suppose I do find a townhome I like. Will I be among those who say, "Screw funding reserves for items 10 or more years away from being replaced. I may not be alive that long." I think a lot of senior citizens fight assessment increases (intended to boost the amount in reserve accounts) for this reason.
-- BancsS, I agree about my gut feeling. I am going to dox any prospective COA manager. I want to know his/her formal education. I want to know whether he/she has been arrested for a DUI. But I want to talk to the manager for at least five minutes. If I get a cold, yet serious and informed response from the manager, she/he is the manager for me.
-- Probably my biggest concern is that I will find owners and directors alike not savvy about covenants and that they are contractual terms. There will be a lot of weighing to do about whether indeed I want to co-own property with the party-ers in the bar.
-- If after looking at the above, I feel, as the line goes, "triggered" by past experiences, then this will drive me to buy the small house instead of the townhome. For my peace and general health. I will maintain simple shrubbery and trees myself. I will buy a decent riding mower for $1000 or so.
-- While traveling a week ago, and after some sleuthing of neighborhoods, I did make an offer a week ago on a great, well-maintained house, that was the perfect size and had a large lawn (lots of airspace between neighbors) and other desirable features. The house had been on the market maybe a few days. The listing agents said the seller would review all offers on Saturday evening. On Friday I offered $5k over the asking price. On Saturday the seller accepted an offer that was $20k over the asking price. IIRC the listing agent said there were a few such offers at this price, and the seller chose the best one. One thing this means is that a lot of people are making cash offers. I wonder if things will settle down to something more sane. This all is largely driven by low interest rates and a bloated stock market. As well, maybe climate change is driving a lot of this in the non-coastal states.