Real Estate Blog - Do home owner association rules bring down property values at times ?

Home : Blogs : GITA BANTWAL, REALTOR BUCKS COUNTY, PA HOMES : Philadelphia, Bucks and Montgomery Counties Real Estate. Tips for home buyers, home sellers by Gita Bantwal,Realtor at ReMax Centre Realtors.

Do home owner association rules bring down property values at times ?

Home Owner Association rules are meant to protect the interests of majority of home owners.

They have elections and form a Board every year. Board members vote on many things. Good Board members are important but at times people do not go out to vote and some people do not have time to go to meetings or to serve on the Board..

In this market where property values have come down some changes in rules and regulations may help home owners in some communities.

eg. Many associations say FOR Sale signs are not allowed . Many buyers drive throgh neighborhoods and look for homes before calling an agent. it might help if there are FOR SALE signs at least in this market.

eg. Not allowed to rent it out. If people can not afford to sell at a loss and have to move , they may want to rent it out till prices go up, but I have seen a community where prices are decreasing because of not being allowed to rent it out.

Ofcourse no one wants to see too many Sale signs , that may hurt home prices sometimes and if there are too many rentals it may cause problems with investor ratios.

But I know of a few neighborhoods where Sale signs and allowing rentals would improve the market.

Posted by GITA BANTWAL, REALTOR BUCKS COUNTY, PA HOMES on 07/08/2009 06:44 AM

Comments (15)

HOA Rules in the Regional (Localism) Channel

hoa rules

Originally posted at: Philadelphia, Bucks and Montgomery Counties Real Estate. Tips for home buyers, home sellers by Gita Bantwal,Realtor at ReMax Centre Realtors.: Do home owner association rules bring down property values at times ?

This post has been included in Pennsylvania Information
Post is included in group: Realtors®
Post is included in group: Posts to Localism
Post is included in group: Local Expert
Post is included in group: Fraiche Aire
Post is included in group: Dedicated Bloggers

15 Comments on Do home owner association rules bring down property values at times ?

JUL

I agree, Gita, we are in a different market and HOA rules need to change to accomodate it.

Janice, I hope some Board members read this post.Thank you.

I think the 'No rent' would be thrown out in court, and has been in a few areas. There are limits to what an HOA can do for the community. Imposing restrictions on an owner to rent their own land imperils the right of ownership and the bundle of rights that comes with title to property. For a homeowner to be forced into financial difficulty because someone in the HOA does not want homeowners to rent vacant homes is a joke.

Gita, They seem to forget that they are "joined at the hip" and are only as strong as their weakest link. They should want to help keep the neighborhood and neighbors vibrant and viable. The worst board members are those with nothing else to do but patrol the neighborhood for infractions. The rules and regs are intended to protect a lifestyle and value, not dictate. A For Sale sign in the window can help everyone - a neighbor might want to buy the property, but doesn't know its on the market. If they know its for sale they can pick their neighbors - tell someone they like about it so they'll buy it and move in. There are only positives that come from it. I agree - they should be flexible in these special times.

Yes, I can see it from both sides, but it is frustrating in this market and with ad costs so high to not allow signs!

Gita,

Well said. I will say that in Texas some of the HOA's are getting out of control. One north of Dallas had a rule that prohibited you from parking a truck in front of your home, unless it was a high end designer truck. In Texas, go figure.

JUL

Jim, I had not heard of this but maybe the Board members will realize that these are special times.

Jim, I love the comment. You have expressed it well.

Kristin, If they want the market to improve they should change some rules.

Richard, I wonder who makes the rules.

JUL

I thing the sign regulations really hurt. In tough markets sellers need all the help they can get!

I've worked with understanding HOA boards and dictatorial boards that would make Lenin tremble. I understand the restrictions on rentals to the extent that it endangers a buyers ability to obtain financing but the sign rule... that's one I think could certainly do with a little relaxing.

JUL

Tina, I agree. Thank you.

Jesse and Kathy, I got a chuckle fromn your comment.

JUL

Not only do those HOA rules sometimes bring down property values, but they also have been known to kill a deal:

Buyer has two small dogs, both under 25 lbs. Only one dog is allowed.
Buyer has a motorcycle and two cars. Motorcycles must be parked in garages.
Buyer has a boat. No boats allowed on premises.
Buyer likes to spend his time half naked and washing and waxing his Corvette on weekends. No car washing allowed on premises

Etc.

Russel, I have seen some of these rules and I hope people read them carefully before buying.

JUL

Gita--

I have one right now where the HOA is not enforcing a rule (all dogs must be on leashes at all times) and that is hurting the sale of a unit where the neighbor lets her pit bull off leash on common area. HOA has sent registered letters, that have not been picked up. They are doing nothing... and buyers have said they will not buy this unit if the situation continues.

JUL

Erica, Are there township regulations ?

There are not regarding dogs. It's a frustrating one. If you have a HOA and do not enforce the rules, how can anyone justify having the rules?

I told the HOA if anyone gets bitten on common property (the playground, the park) the HOA could be sued!

This blog does not allow anonymous comments