Selling real estate in an average neighborhood is pretty straightforward. Get the buyer and seller to agree on a price, set a closing date and away you go. When you sell real estate in communities with a Home Owners Association however, it can add a new level of challenges. Now your buyer may have to meet requirements, even financial ones, and agree to observe the rules of the Homeowners Association. It can be very valuable if you, as a real estate agent, take the time to understand HOAs.
The Purpose of HOA's
Contrary to the belief of many, HOAs weren't created to make life difficult. They were created to protect individuals who have invested in a housing or condo community. They are charged with looking after the common good, and in taking care of shared facilities like a pool, community room, landscaping and more. They can mandate acceptable behavior. That's a pretty good concept for those who don't want to live next door to an old Chevy parked endlessly in a neighbors front yard.
Who Makes Up an HOA?
Home Owners Associations are generally made of members of a community who want to be actively involved. In many cases, they have specific knowledge and life experience to benefit the community like legal, financial, or real estate backgrounds. Many members just want to contribute and have an impact. While many may have a negative perception of HOAs, they actually have real value.
Why Real Estate Agents Need to be Comfortable With HOA Guidelines
Part of the job of real estate agents is to make sure buyers are fully aware of what is expected of them after the sale. This includes full disclosure of what is involved in an HOA agreement. Real estate agents are far better off disclosing the full restrictions of any Home Owners Association than they are in simply making the sale.
The Benefits of Building HOA Relationships
Motivated real estate agents can expand their horizons by establishing relationships with area HOAs. These HOAs want new neighbors who are well-informed and who understand their rules going in. They may be willing to refer those in their community to real estate agents who understand their guidelines. By showing an interest in their ability to maintain their standards, partnerships can be developed.
It is well worth your time to learn about, and communicate the rules of any of your significant local HOAs to your prospects. Your clients will be properly prepared and the HOAs will appreciate you as an agent who delivers quality residents.