Tropical Hibiscus Plants in South Florida Gardens

by | Curb Appeal

Tropical Hibiscus Plants in South Florida Gardens

Florida HibiscusPlanting Tropical Hibiscus in the Florida Garden

Hibiscus bushes and trees are easy to take care of and put plenty of color in the garden.  The tropical hibiscus comes in a variety of colors including pinks, reds, yellows, and oranges.  They come with single and double flowers.  Landscape your yard with a hedge, tree, or an accent bush to beautify your garden landscape.  Plant 3 to 6 feet apart.  Feed twice a month during growing season with dynamite plant food and the flowers will keep on blooming.  Trim back occasionally to keep the shrubbery full and healthy looking.  Many flowering plants need a lot of attention but Hibiscus plants are hardy and can take the tropical heat here in Florida gardens.  They also attract butterflies and hummingbirds.

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Monitoring HOA and Condo Management

by | Condominium Ownership

Monitoring HOA and Condo Management

Monitoring Condo and HOAMonitor Your HOA Records

Have you checked your Condo Records lately?  Living in a condo and letting a Property Management Company or Board of Directors manage your condo is beneficial for those who don’t want to maintain the day-to-day details.  However, as a property owner you should do a wellness check from time-to-time to make sure your Condo records are in order.  Some Condo or HOA’s have found out months or years later their money was not properly allocated to managing the property or at times missing.  By performing a condo wellness check, you help prevent the mismanagement of your HOA dues.   So the question would be what should I look for?

  1. Florida Statues has a list of records which must be kept for all Condo’s Associations.  As an owner, you would want to check to make sure your Condo Association is keeping these records for each homeowner’s inspection to make sure your condo is compliant with the correct operation of a condominium.  Your rights to these records are according to statute:  718.111(12)
    • A copy of the condo plans, permits and warranties
    • A copy of the recorded Declaration of Condominium and a recording of each amendment if there have been any amendments to the original records
    • A copy of the By-laws and any amendments
    • A copy of the meeting minutes which need to be stored for 7 years.  These meeting minutes are extremely important for information that has occurred in the past and the decisions made recorded properly.  If there is any problems in the future these recordings are extremely important as to whom made the decisions, board votes, community votes etc…
    • A copy of the current Association rules and regulations
    • A certified copy of the Articles of Incorporation generally turned over by the Developer
    • A current roster of unit owners including electronic email addresses
    • A file for the Management Agreement, Lease or other contracts the association may have signed and have an obligation for payment
    • If an Association owns property there must be a file for Bills of Sale or Transfers for Association owned property
    • Current HOA Insurance Policies please read your documents to make sure what insurance your Association is supposed to have to cover your units.  One Association we know have had been purchasing flood insurance for years when it was not in a flood zone and the condominium documents state that the flood insurance should only be purchased if the Condo’s were designated by FEMA to be in a flood zone.
    • Accounting records for an association must be maintained for 7 years.
      • A detailed record of all expenditures and receipts for purchases or services
      • An ongoing statement of account including unit owner information and payment records along with balance due
      • Yearly accountant audits and reviews for the condominium
      • Contracts and Bids for work to be performed or considered on behalf of the Association.
      • Yearly Ballots and Sign-In sheets including voting proxies each election year.
      • Rental records if the Association is acting as agent for renting units.
      • Question and Answer Sheet maintained by the Association as described in statute 718.504
      • Any other records of the association such as wind mitigation and appraisals which are necessary to the operation of the property.
      • A copy of the inspection report

By checking the records and looking at the financials compared with the budget you will be able to see where your money is being spent and whether proper bids were obtained.  Comparing contracts to expenses will also ensure that these files are being maintained.  You may want to review the contracts to ensure you are being protected.  For example, how many years is the contract?  Does the Management contract have exactly the services that it will provide?  Is the Management company performing those services?  If you have an Exterminator is this company performing the tasks according to contract?  Sometimes we see where Condo Boards change members or Management Companies and there is a disconnect as to the contracts the Association has or the tasks Contractors are to perform.  With more community members checking records, contracts and financials it makes for a more informed and properly run Association.  Lastly, make sure your Association is obtaining proper bids and maintaining the book so that your budget is in order.

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How To Reduce HOA Fees in Florida

by | Condominium Ownership

How To Reduce HOA Fees in Florida

Reducing HOA FeesReducing Port St Lucie HOA Fees

There are many ways an HOA can reduce their monthly HOA fees.  First, the budget committee would need to look at the previous years budget and analyze where savings can be realized.  Below are some areas to consider when looking at the financials.

  1. Get your own bids for work to be performed.  Read your contracts very carefully and if you have questions or something does not seem right such as an automatic renewal, a one-way indemnity clause or the services are not written in detail ask your attorney for advice.  This will save you money in the long run.  You may always counter the contract as well.
  2. Check your Annual Budget and ensure the maintenance of your property is being properly budgeted.  For example, what are the reserves for your building?  Did they include plumbing, roof, pool, club house etc…  Has your Board of Directors obtained regular bids for rising costs?  Ask other Association Directors what they are paying for services and who they are utilizing for different services.  In other words, share information.  Usually, there is a current property appraisal to compare these costs as well.  Roads are a large expense, is this in the budget as a reserve item if the HOA has to maintain the roads?  Think of any areas that may not be in the reserves that could be a large expense other than those listed.
  3. If your HOA and Condo Associations pays water bills they should be analyzed on a regular basis to monitor whether bills are fluctuating more than normal.  For example, you may have a pool leak.  If this is on a separate meter you will notice the bill suddenly go up due to the pool leak.
  4. Each unit should check for leaks.  Silent toilet and faucet leaks can definitely have an impact on the water bill.
  5. If your community has many Northerners for the winter that leave during the summer you can reduce the size of your dumpsters.  Be aware of change out fees and decide accordingly.  Also, consider when you sign contracts such as Comcast and you have a majority of seasonal homeowners.  They may not need cable/phone/internet year round.
  6. Make sure all the timers for the lights are operating properly and shut off during daytime hours
  7. Very important to get up-to-date bids on your maintenance services and ensure no one is adding on a finder fee.  It would be a good idea to have anyone obtaining bids on behalf of the Association sign a non-kickback agreement that they are not receiving any compensation whatsoever including gifts.  This would include hired vendors as well signing the anti kick back policy form.
  8. Get an FPL survey for energy savings on the Condo Property.  If your pool has a heater make sure it is shut off for the Summer Months
  9. From time to time call different insurance companies for new quotes. This is not to say every year but if you notice a substantial increase it may be time to get another insurance quote.  Insurance policies should be according to your Condominium Documents and you can check the Statutes for any insurance updates that are mandatory for Condo’s to carry on behalf of the unit owners.
  10. Make sure the services are outlined in each contract and ensure that the Vendors are fulfilling those services.  For example, if your Property Management is supposed to walk the property and look for necessary repairs or violations that this is being documented properly and reported to the Board Members.  If the lawn service provider is supposed to perform a sprinkler or fertilization check, find out is this being done in a timely manner.  There needs to be constant communication with the vendors to ensure that the services are being performed according to contract.  If no one is checking it is possible you are not getting the services you are paying for to maintain your community.
  11. When comparing bids be sure to compare apples to apples.  For example on painting bids, you may contact one of the large paint companies such as UCI Paints or Sherwin Williams and a Representative will write painting specs for your condo building.  The Painting Company rep will provide your condo board several local painting contractors to bid on your painting project.   There is generally a warranty and for very little money you may be able to increase the number of years for the warranty.  Or perhaps the painting contractor will throw in extras such as painting the utility doors, trash room or other community shared area.
  12. If you have a large-scale project for the building make sure someone is qualified to manage the project and stay within budget.  Someone needs to be on top of each process such as permitting, certificates of insurance, sub-contractors and make sure the services contracted are according to the contract signed by the Board of Directors.

Lastly, if your Board of Directors is monitoring the daily account payables and analyzing the increases or areas that are over budget then they can follow-up to see how they can improve this line item on the General Ledger.  By obtaining proper bids and ensuring the contracts are being fulfilled by the vendors, then you should be on your way to an efficiently run property.  As a community member and staying involved in the financials and community projects you will ensure your condominium is being properly operated.

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Florida CAM Manager Kickbacks

by | Condominium Ownership

Florida CAM Manager Kickbacks

Florida condo kickback policyFlorida Condo and HOA Anti-Kickback Policy

Florida Community Association Mangers (CAM), Officer and Directors of HOA, Condo’s or Co-Ops may not get a kickback or referral fees while obtaining bids or contracts from Vendors.  CAM Mangers must deal honestly and perform the best job on behalf of the Associations.  Chapter 718.111(1)(a)  718.501(1)(d) states the following:

An officer, director, or manager may not solicit, offer to accept, or accept any thing or service of value for which consideration has not been provided for his or her own benefit or that of his or her immediate family, from any person providing or proposing to provide goods or services to the association. Any such officer, director, or manager who knowingly so solicits, offers to accept, or accepts any thing or service of value is subject to a civil penalty pursuant to s. 718.501(1)(d)  

There are similar statutes in 719 and 720 Homeowners regulations.

CAM Managers may not take payments under the table.  Condo or Homeowners Associations should be aware of schemes to obtain Kickbacks by overcharging the Association for a service and the vendor gives a kickback to the Manager for winning the contract.

Condo or Homeowners Association may want to have an Anti-Kickback policy in place and have all members who are obtaining bids or contracts sign this form.

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Forecast for Commercial Property Market

by | Commercial Real Estate

Forecast for Commercial Property Market

Forecast Commercial Real EstateCommercial Real Estate August 2012

As we are approaching the end of an economic meltdown that witnessed one of the worst collapses in commercial real estate all over the nation, the constant arrival of massive portfolios of the bank-owned commercial properties is still a concern for this sector’s future.  The misfortune of theses commercial property owners, on the other hand, has attracted many investors who’re looking to take advantage of these rock bottom prices into the recently emerging commercial REO market.

Although the tight credit has been a detouring factor in the past, but finally commercial lenders are slowly, and ever so cautiously, opening their doors to the new loan applications. This could be the fuel necessary to reignite the construction industry.  One of the main obstacles in re-starting the commercial property construction is the large portfolio of underpriced commercial properties that needs to be picked up before a new construction makes sense. This is in a sense identical to what residential property market forced to face with.  The solution still remains in the availability of credit for purchasing the bank-owned commercial real estate properties.  Ease of credit will to eventually relieve the market from the cheap foreclosed assets and open the gates to the new construction properties.  Simply put, as long as there are existing properties priced at less than the replacement value it would not be economically wise for the developers to start new construction of commercial projects.
With the global network of affiliates in Europe, Asia, Africa and the Middle East and main offices in the US, Smart Pre-Construction offers many commercial property opportunities to the interested international buyer, while welcoming developers to market their new projects through a well-established company to a wider international buying pools.

to take advantage of these rock bottom prices

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Healthcare Related Commercial Real Estate

by | Commercial Real Estate

Healthcare Related Commercial Real Estate

Health Care Industry Real EstateCommercial Real Estate and Healthcare Industry

After the collapse of the real estate and financial market of last decade, the new REITs concentrated on the acquisition of healthcare-related commercial real estate instead of piling up the residential real estate portfolios of the real estate boom era.  As the residential real estate market plummeted to a historic low during the recession of the past decade, the commercial real estates also witnessed their fair share of the slump.  Eventually, the ripple effects of the crash of the banking system and the real estate transferred to the retail industries.  This resulted in the closing of many stores, malls and shopping centers due to the high vacancy rates of the past decade.  The slumping Commercial Real Estate market did not end in the retail industry and spread through other segments of commercial real estate such as hotels and office buildings.
As the baby boomers reached the rate of 10,000 retirees per day, a considerable demand for healthcare entered the market that resulted in short supplies of such properties.  For that reason, there was a noticeable increase in demand for the healthcare facilities, making the hot commodities while most other commercial real estate properties collapsing into the darkness of the recession.  The demand for the purchase of healthcare-related properties, from active adult communities that offer onsite healthcare to Medical Office Buildings (MOB), Nursing Homes and Extended Stay Facilities, reached an all-time high and predicted to continue on this path for upcoming years.  While the residential real estate investments for the Pre-construction Investment Clubs, Real Estate Investment Trusts (REIT) became a thing of the past, the new REITs were burn that is predominantly specializing in the healthcare sector.  The latest acquisition of five MOBs by the REIT managed by Grubb and Ellis Healthcare REIT II for $44 Million is an example of what is up with the healthcare-related real estate industry.

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Problems with Chinese Drywall

by | Home Maintenance

Problems with Chinese Drywall

Detecting Problen Chinese DrywallImportant Notice About Chinese Drywall Problems

To All Buyers of Homes in Tradition, St Lucie West, and Port St Lucie: Buyers Be Aware of Defective Chinese Drywall in Homes Built During the Last Decade.

In the height of the construction boom and in the aftermath of the active hurricane seasons the shortage of drywall and other construction materials forced the developers to import them from China during the period of 2004 to 2006.  Unfortunately, some of the imported Chinese drywall was manufactured with toxic materials and caused an adverse effect on the values of homes that were constructed with the Chinese drywall.   Although the problems persisted throughout 2008, but there were reports of similar issues with some of the imported Chinese drywall in earlier years. 

The Agency for Toxic Substances and Disease Registry, ATSDR along with the US Consumer Product Safety Agency and other similar centers started the investigation of the possible problem with the imported Chinese drywall in 2009.  Eventually, the task of measuring the sulfur components that could have been released from problem Chinese drywall was referred to the Lawrence Berkeley National Laboratory, LBNL.  The sulfur compounds from 30 Chinese drywall samples manufactured in 2005 and 2006 were compared to that of the drywall manufactured in North America in 2009. 

Consequently, the ATSDR employed the help of Georgia Institute of Technology, Georgia Tech, to make an estimation of the sulfur compounds concentration in homes built by the drywall based on the test results obtained from of LBNL.

Health Ramifications of the Chinese Drywall

Finally, by the tests were completed by LBNL and Georgia tech the concern for the health ramifications of the Chinese drywall samples were examined.  The results were simply stated as “Test chamber used by the Lawrence Berkeley National Laboratory to measure emissions from drywall samples”. For more information please refer to the complete reports by ATSDR.

 The tests also revealed that the level of the sulfur compound emissions was consistent with the problem of the metal corrosion in homes with the Chinese drywall.  They also estimated that the level of the sulfur components emissions was much higher in the early days of manufacturing.  It is noteworthy to mention that the drywall samples that were manufactured in North America in 2009 did not show any unusual levels of sulfur emissions as the imported Chinese drywall did.  The final section of the report indicates the health risks of the exposure to sulfur components and the Chinese drywall as:

  • Headache
  • Fatigue
  • Irritations if nose, throat, and eyes, and
  • Asthma-like respiratory problems

People who were exposed to sulfur compounds emitted by some drywall manufactured in China may have experienced health effects and buyers of the new homes that were built during that period must do their due diligence before they buy.   Currently, the only remedy in the place is to completely strip down the drywall within the entire home, decontaminate and re-drywall.  Another side effect of the Chinese drywall that needs to be replaced is the signs of the premature corrosion in some metal parts in the homes including the gas lines and some electrical components.  This is due to the emission of an unusual level of sulfurous compounds from the problems with Chinese drywall.  In order to completely control the damage caused by the Chinese drywall all gas lines and, parts, as well as the electrical switch boxes, ground wires, and A/C coils should be replaced.  So far, there is no indication that the Chinese drywall problems have extended into the wiring in the buildings.

This emission of sulfur compounds from the Chinese drywall has become a serious matter with serious health and financial consequences. To differentiate the homes that are affected by the Chinese drywall from the rest, all buyers need the assistance of the professionals in the field and no buyers should be depending solely on the words of the sellers alone.  Buyers and their agents should be diligent about the problematic Chinese drywall and try to call for Chinese drywall inspection when purchasing a home that was built from 2001 to 2008 in the area.

When buying homes in Port St Lucie, St Lucie West, and Tradition please use local Realtors and other real estate professionals with working experience in the area.  For more information about the availability of the new and resale homes along with information on the Chinese drywall and locating dependable Drywall Inspectors please contact:

Email: info@portstlucie.city

Phone: (772) 323-6730

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Guide to Detecting the Evidence of the Problem Chinese Drywall

by | Home Maintenance

Guide to Detecting the Evidence of the Problem Chinese Drywall

Chinese Drywall ProblemsDetecting Chinese Drywall Problem

According to Consumer Product Safety Commission Guideline, there are many signs that might link a house to the problematic Chinese drywall defects.  According to this report, the step one in this report covers the Threshold Inspection through the Visual Inspection.  The first telltale sign is the blackening of copper electrical wiring and the A/C evaporating coils.  This method of identifying is easy for any unskilled person to determine the possibility of erosions associated with the presence of the sulfur compound in the defective Chinese drywalls.  Some of the water connection, between the main line and appliances such as the dishwasher, under the kitchen sink, are sometimes cooper-based materials and the blackening of these waterlines are easily visible to the naked eyes.  The second step is broader than the visual inspection.  The guideline asks to define if the drywall was installed between 2001 and 2009.  The installation could be for both the construction of the home or renovation.

The step 2, the Corroborating Evidence goes further in details and generally will need assistance from laboratories and experts.  This step explores the fact that there are other reasons that could have caused the discoloration and blackening of copper elements.  For the homes that the characteristics of the metal erosions are present, the guideline calls for 2 different criteria.  First for the homes with the drywall installation date of between 2005 and 2009 at least 2 of the collaborating evidence must be present.  Secondly, for the drywalls installed between 2001 and 2004 at least four of the following collaborating evidence must exist.

Collaborating Evidence of Defective Chinese Drywall

  1. Sulfur compounds level in the drywall exceeds 10ppm
  2. Formation of copper sulfide on copper test strips that are placed in the house for a period of 2 to 4 weeks.  This step is to confirm that the blackening of copper elements such as the copper ground wires or the A/C coils are as a result of the defectiveive drywall and unacceptable level of sulfur compounds in the drywall
  3. Visual examination of the “Made in China” marks on the back of the drywalls
  4. Higher than standard levels of hydrogen sulfide, carbonyl sulfide, and/or carbon sulfide from drywall samples after conducting the ASTM Standard Test Method D5504-08or similar chamber testing
  5. The evidence of the corrosion caused by placing both of the copper metal and drywall sample in the chambers

As previously mentioned collecting such collaborating evidence will require assistance from expert professionals or testing laboratories.  For more information about Chinese drywall inspectors or help with any other concerns regarding a home that you are planning to purchase please contact us at:

Email: info@portstlucie.city

Phone: (772) 236-5514

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Chinese Drywall Problems

by | Home Maintenance

Chinese Drywall Problems

Chinese Drywall Effected StatesBuyer Be Aware of Chinese Drywall

 Note: While many websites have chosen not to mention anything about possible problems with some of the units in certain developments constructed around 2003-2007.  We found it our duty to point out some issues that were raised due to the use of the defected Chinese drywall with some of the resale properties in the past.  If you have not heard about this problem, here is short synopsis: The high demand for construction materials during the real estate boom of the last decade resulted in some importation of Chinese drywall that did not meet the standards of the quality.  

 Unfortunately, after a short period of time, the homeowner who purchased homes that were constructed with the defected Chinese drywall became aware of the issue.  The telltale signs were the presence of some foul odor and in some cases a noticeable erosion of metal plumbing and electric boxes.  A further investigation resulted in the issuance of warning from health agencies on the possible health hazards of the exposure to such an environment.  The above map shows the states that have been affected by the problems caused by defective Chinese drywall. 

 For more information please refer to our comprehensive article titled “Problem with Chinese Drywall” in the blog section of this website.

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Guide to Purchasing Real Estate Part V

by | Buying Real Estate

Guide to Purchasing Real Estate Part V

Real Estate contractPlacing an Offer in Real Estate Owned, REO Properties

Placing an offer and dealing with the Real Estate Owned, REO properties required a different pricing strategy in comparison to the purchase of any real estate through traditional channels.  The overwhelming number of foreclosed homes and short sale resulted in different procedures for the purchase of such properties.  As Foreclosed properties suddenly became an integral part of the real estate inventory, the Realtors, the buyers, and the mortgage bankers scrambled to adjust to the monstrous effects of addition of these properties in the real estate negotiations and transactions.

One of the changes in the procedure was the use of third-party vendors to register and evaluate the foreclosed homes. To expedite the process, instead of traditional appraisal companies, they hired the Realtors to do the valuations of the properties.  This Valuation is called BPO or Broker Price Opinion.  Due to many circumstances, some of these valuations failed to portray the real fair market value of the foreclosed homes, most often pricing them below when compared to non-REO properties.  The undervaluation of these properties resulted in the influx of investors and speculators to the real estate market.  The cash buying investors had negative effects on home buyers who were planning to become owner occupants, which eventually resulted in the change of rules by many financial institutions.  One of the primary rules was to limit the market to owner occupant during the first days of the listing, usually the first 10 to 15 days.  If no owner occupant put an offer on the foreclosure home then the property opens up to investors.

It is important to mention that not all the foreclosure properties were evaluated at lower than fair market values through BPO valuations.  Some of these homes in actuality were priced in and around the market value and some listed at an even higher price than compatible non-REO properties.  For this reason, working with a real estate broker who is experienced in the BPO and REO process is crucial in negotiating the best price when buying foreclosure homes.  As a former licensed real estate appraiser, I have been doing Broker Price Opinion (BPO) for many mortgage servicing companies for over a decade.  These companies represent major national banks like Bank of America, Wells Fargo, Bank of NY Melon and more…

Having a comprehensive knowledge of pricing and BPO process is the best tool I can offer for home buyers and investors in helping them to purchase foreclosure homes at the best compatible prices possible.

The series of article will continue in Guide to Purchasing Real Estate Part VI

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Guide to Purchasing Real Estate Part IV

by | Buying Real Estate

Guide to Purchasing Real Estate Part IV

real estate offerPlacing an Offer to Purchase a Home

When it’s time to place an offer to purchase a home in the State of Florida it is your Realtor’s or Real Estate Attorney’s duty to write the offer along with the proof of funds, proof of escrow deposit and all the other related addendum and submit them to the seller’s agent.  This writing an offer process might vary in other states and is left to attorneys and the Realtors duty is to solely find you the property.  But your Florida Realtor is in charge of writing an offer, which becomes a contract when signed by all parties, counter offer if necessary and see the process through all the way through the closing day.

Placing an offer if the art of negotiation that a professional Realtor should be able to perform on buyer’s behalf and to the best of his or her interest.  The common method Realtors use to determine an offer price is a quick Compatible Market Analysis that will show how much other buyers have paid for the similar properties in the same market.  Normally the properties considered for this analysis share the following characteristics:

  • Sold within the same subdivision or located within one-mile radius of the subject property
  • Sold within the past 3 months
  • Same size, the number of the rooms and amenities.  If the exact compatible properties are not available for comparison, the proper adjustments must take place on all comps in order to bring them to the same level as the subject property.  Appraisal 101: never adjust the subject property, all adjustment should always be made on comparable properties.
  • Comps must be arm-length-transactions.  This means that any property sold for less value, such as Quite Claim Deeds or transactions between the family members for a lesser value, could not be considered as a good comparable.

The final price of the offer is normally less than the listing price.  There are many reasons for this strategy.  The most common one is to have a price in mind then offer around 10% less hoping the seller will counter offer at the desired price.  That said, it is important to know that each seller is different and this strategy might not be suitable for all negotiations.  This is most true during the sellers’ market when sellers receiving more than one offer, which at times forces the buyers into a bidding war and offering perhaps even more than the asking price.  While your Realtor is the best source in putting a strategy in place on the offer price negotiation but at the end of the day, it is your money and should be your decision to know when it’s time to offer more than the asking price or when to fold.

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Guide to Purchasing Real Estate Part IIl

by | Buying Real Estate

Guide to Purchasing Real Estate Part IIl

Coldwell Banker Thomas J. WhiteFinding the Best Homes for Sale

In the previous article, we walk you through the preliminary steps in getting all the financial docs in a row, having pew-qualification letter from your financial institution or a mortgage broker, and finally finding a licensed Realtor.  Now it is the time to look for that house of your dream.  The first step is to have a list of wants and needs that would accommodate all the requirements that you and each family member might have.  Start writing everything down and have it ready for your family and the Realtor’s review.  This list could include the number of Bedrooms/Baths, Garage, Swimming Pool, the Location, within a Planned Community or not and so on.  When it comes to the location try to be as flexible as possible as you don’t want to miss out on purchasing of a better home just because of 5-10 extra minutes of the drive-time.  Also, remember not to tie yourself down by factors like the proximity to your work if you are not sure you will be at that job for a long time.

Buying Homes in a Homeowners Association Community

Regarding the planned communities there are pros and cons that you have to evaluate before jumping into living in one.  The following will explore the pros and cons of buying homes in a homeowners association community.

The positive points living in a community that is run by a homeowners’ Association are:

  • Security-  Most HOA communities are gated and normally offer some sort of security
  • Uniformity- All Homeowner Associations have some sorts of rules and regulations, such as predetermined collection of colors for the exterior paint, no trucks, boats or motorcycle allowed in the community and etc.…  These regulations are designed to keep the community maintained and preserve the values of all homes in the community.  It also means you would not have to look at a dark purple home across from your residence!!
  • Landscaping- Depending on the association either the HOA will take care of the entire landscaping, including in and around each homeowner property or they are just responsible for the common area
  • Amenities- Most associations offer an array of amenities, which could become a great advantage and could be a good selling point in the future. The two of the most common HOA amenities are the swimming pool and the clubhouse.  Just imagine being able to take the kids to the swimming pool and enjoy your time there without having to worry about maintaining it.

The cons for living in a community run by the homeowners’ association are:

  • Weak Homeowners’ Association- While the homeowners’ Associations are run by a board that is comprised of the elected homeowner-volunteers but there are many horror stories of misconduct, mishandling of the funds or just pure mismanagement by these board members or the property management companies that they have hired.
  • Stringent Rules and Regulations- The same rules and regulations that are supposedly in place to protect the homeowners could become a double edge sword and work against them.  One example that we encountered not long ago was about a homeowner who traded in his car for a shiny red truck just to find out a week later that trucks are not allowed inside the community and there is no other place outside either that he could park the truck and walk to his residence.
  • Age Restriction- Although you will be notified by your Realtor or by the board, during the interview process, if the community is a Housing for Elder Persons or HOPA but you should take a minute and call either the HOA or their management company about the age restriction as well as other limitations that might affect your decision in buying a home in that community.

The bottom line is all homebuyers, regardless if first time or not, have to be proactive and ask questions.  They should not rely solely on what the Realtor might tell them.  This is simply because the information that he or she is conveying could be from the last deal they had in that community, but the rules have changed ever since.  Remember that associations could change whole or parts of their rules and regulations as long as they have enough votes from the board and homeowners.

In continuation of these series about our guide for homebuyers, we will explore the house hunting, appraisal, inspections process all the way through the closing day.  Look for Guide to Purchasing Real Estate Part III in upcoming articles.

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