Influencing Who Moves In to Neighborhood

Is there anything an HOA or an individual homeowner can do to influence who moves to a neighborhood?. Before I continue, just to make it clear from the start, I am in no way suggesting getting around the Fair Housing Act, which I respect and support.

The anecdotal perspective I am coming from is that "flippers" are the owners, albeit temporary, that cause the most issues (i.e. rules violations) and seem to have little regard for reading and abiding by rules. It's as if they have a mentality that violations/fines are part of the cost of doing business. They boast about how they are doing everyone a favor by raising everyone's price (which is irrelevant in the long term) and that the inconvenience of jackhammers on Sunday is worth everyone's housing value increasing.

Is there anything an HOA or individual owner can do to persuade a seller to sell to an end user vs a "flipper"? "Flippers" are not a protected class. I recall reading a couple of years ago that prospective buyers would write "love notes" to sellers, expressing how they would be the best fit for the house and what they planned to do to it. Has the reverse been attempted with a seller?

In my situation, there is a specific real estate agent who represents a good number of buyers in my neighborhood and brings a lot of "flippers" who don't abide by the rules. We are a strict HOA with enforcement of rules. One would think that these "flippers" would have conveyed to this real estate agent their experience with a strict HOA and getting fined, but maybe not.

Would it be proper or controversial to write to this real estate agent, with something along the lines of "Noticed you have been representing a lot of buyers in our neighborhood who end up "flipping" the house. Just wanted to let you know that FYI we are very strict with rules enforcement on renovations, noise., etc.."

Do you instead communicate to the "flipper" buyer on Day 1 that the HOA has strict enforcement of the rules and that the Board will be actively monitoring for violations?

Money talks and BS walks - that's the American way, although too many want to pretend it's not. Actually, it's human nature- I buy stuff for next to nothing, make a few cosmetic changes, then sell for twice what I paid, and perhaps more.

People are beginning to see what a lot of us board members, current and former, have noticed for years. I know what too many investors gave done to my own community, which is why I usually give a side eye to investor-owners who come on this website and moan about "the board won't let ne reng" or some such..

Tim suggested the best way educate honeownes planning to sell,, put in the prohibition about renting for two years (unfortunately, its probably too late to enact something like this in my community), and be fair and consistent in rules enforcement. It won't stop everyone, but it may slow things down.

Or wait for the economy- I saw an article today that said the housing market is cooling (my former supervisor is married to a realtor who said this would start right about now). Of course, there are a ton of reasons why and depends on where you are.

I wonder what a real estate agent would do if they found out you talked a homeowner into not selling to a ready, willing and able buyer that he or she had brought to the seller?

I'd think flippers would break certain rules more than others. Noise after hours and on weekends, maybe parking violations. I'd s ask the board to increase those fines. I'd make sure the rules gave you leeway to call alleged violators to a hearing at the first violation and immediately. I'd make sure.

I'd make sure that every new owner gets a charming, neighborly welcome letter that includes a ...."Btw, to main the attractiveness and peaceful enjoyment of our community violations of our covenants and rules are dealt with quickly and decisively," or similar.

They also quickly raise the comparables used for setting home prices in the neighborhood.

That's a good question, at what price point do investors say naw I'll wait. A REA friend is still seeing a few transactions close that are cash buyers
of investment buyers.

1. Start lobbying to your state assemblyman and senator 2. Advocate for changes in your CC&R's to limit rentals with a buyers clause
that prohibit renting until after the first 3 years of ownership. Change your CC&R's to make sure renters and new owners are well aware of the governing documents.
Perhaps an "initiation fee" where the PMC goes over the governing doc and be stern on your violations.
Unfortunately the laws being passed do not protect the individual owner anymore and there seems to be an uptick in investment firms buying up properties.

The problem that NpB points out comprises solely flippers who break the rules while they're renovating homes. It's not about all flippers.

Can I get an Amen

Are you suggesting two different fine schedules for two different classes of homeowners?

CathyA3: I know every community is different, but in mine it is flippers who sell after renovating and do not rent the house out that cause the most issues.

Buyers who renovate and stay long term owner occupied do not cause problems.

What I do not understand financially is why people pay huge markups or profits to a flipper when they themselves can write a check to a general contractor who will renovate for less.

We're all house flippers.

Some of us just flip a little slower than others.

Nope

I think "delayed gratification" is unacceptable as an ethos for most people in the United States. We are an "instant this" and "instant that" culture. The accumulation of top quality stuff is how most people keep score.

My realtor last year pointed out that many flippers did shoddy work simply to take advantage of increasing housing prices. Buy, throw on a coat of paint, flip.

I have seen that in my area as well. To add to the shoddy work, the area had a terrible flood in 2019. Flippers pick up some damaged homes cheap and fix them to look pretty. And increase the price as well. A good share of the town has to purchase flood insurance per federal flood rules too.

When I was home buying 11 years ago, there was a house that my wife and I really really wanter. We bid at the offer price and the flipper wanted cash only. I
countered with offering to pay the HOA assessments of the current and waiting month and the same with the property taxes, he said no. My wife and I the next weekend
found a new construction spec home that would be ready in less than 30 days so we bought it. Guess who called me 32 days later saying he will agree to my counter offer.
To bad so sad, I am willing to bet if he took my offer in the first place we would have closed in less than 20 days. That it how flippers are affecting affordable housing.

If I was in charge I would make a law that says if you list a home to sell and demand cash only you have to wait 60 days to get your money.

Well if you had what you think was a bad experience than that must be the way it is for everyone else. Thanks for clearing that up.

In 2021 6.1 million homes were sold of which 321,000 were flipped. That's 5%. Don't give me this B.S that flippers are the problem. Like any segment of society some flippers are bad and I get that but they also have positive benefits that I doubt you would ever be willing to acknowledge when discussing this issue.

You are good at researching this Aug, I believe it was back in 20005 the NV legislature capped home taxes at 3% and mad it so property value magically doubles the tax collected would still
be the same amount.
And then we have a crooked county assessor here in Clark County, they supposedly sent out 3x5 postcards to everyone asking them to affirm their property is their residence or a rental.
If the postcards were not returned they assumed your property to be a rental and assessed it at 8% instead of 3%. A I never received said postcard and B I have filed a homestead on my home
So WHY did the county send me a bill for 8%. All a bunch of CROOKS

Thanks for the interesting stat, JohnT.

You bet. Topics like this are never as simple or cut and dry as some people on this forum would like to admit if it doesn't fit their narrative.

t

What happens when:

1.) Someone buys a home and their company transfers them when they have been in their home less than a year?
2.) Someone buys a home and dies and the home needs to be sold.
3.) Someone loses their job and needs to bail out of the house quickly.
4.) Someone decides to sell after 6 months because they don't like where they bought.
5.) A couple decides to divorce 6 months after buying a house.
6.) Etc., Etc.

Our restriction is renting within ones first year of ownership. I have never seen Covenants banning a resale within any time frame

I have a fan that works when the power is out. When it sits on top of a hot stove, the heat generates electricity in the base of the fan and causes the blades to turn. I love clever gizmos.