Homeowners (HOA) restriction on real estate signage is more often than not...counterproductive. I think that in the HOA's infinite lack of wisdom they enact rulings for the sake of rulings. However, very little thought is given to the ramifications of their actions, nor are the HOA's actions ever reviewed a few months or a year down the line and amended to correct or address the new issues they created. Bottom line is that when an HOA enacts new rulings, there is an impact upon all homeowners. That impact may also limit the property owners rights, and diminish or cap the appreciation rates of community home sales. Some of these restrictions involve "For Sale Signs!" The issues are uniformity of appearance, placement of signage, or no signage allowed. There is more to think about than "Yea or Nay" when it comes to a vote on the issues an HOA enacts. Let's look at three scenarios:
- Branded signage (same sign designs customized to a particular subdivision.
- No Signage allowed!
- Signage Placement
Branded Signage - unique to subdivision. This creates a hard ship on really successful agents that list and sell in many subdivisions. The costs and the logistics of storing signage that cannot be used anywhere else is a total waste of marketing resources. One could argue the case for lower commissions, but in some subdivisions in Atlanta a sign could run over $150. Then it has to be professionally installed by the sign company for an additional $25-$45. A professional agent should ask the seller if there are any plans or proposals for the HOA to change allowed real estate signage or restrict usage in the foreseeable future. If so, and changes in signage will be born by the seller. The reality is that you may end up with a mediocre agent, because the pros do not want to keep investing in unique marketing materials.
No Signage. No signage allowed is not good! No signage = no sales as far as I am concerned. The head of a very visible town house community with a great location in Atlanta was boasting to me once that they loved the fact that no signs were allowed in their community. I answered, "That's fine as long as you do not mind the loss of appreciation!" They had no idea what I was talking about. Similar homes located nearby with half the square footage sold in days instead of in years as in the subdivision in question. HOA's make a fatal mistake of not equating real estate signage with successful marketing exposure. A sign will not do the entire sale for the listing agent, but it is an important component. The problem in this particular Atlanta luxury town home community was that the subdivision was highly visible and with a great location, but it always appeared that nothing was for sale. On this one, the reality was quite the opposite, in fact they had tons of inventory and could not give them away! No one knew anything was for sale.
Restriction on Real Estate Signage Placement. Another item I've come across over the years is in an Atlanta new homes subdivision with a HOA that is still run by the builder. When home sales of new homes contract, many builders change the Covenants Codes and Restrictions CC&R's about where signage can be placed or not placed. At first glance it sounds good, but future home owners will never stop to think this one through either. Sometimes, it is also akin to not having any sign! It is hard to place a "For Sale Sign in an upstairs window where no passerby will ever see it! What residents in the subdivision never ask, is "Why did the builder do this?" The reason the builder has implemented the changes is because their own sales have softened now that they are competing with resale's from home owners that are undercutting the builders most recent price increases. So there real attempt is to thwart the sale of resales at the owners expense!
Sometimes youcannot help but stop and think, why would someone want to impose this type of burden on anyone else? It only makes sense if your brother-in-law owns a sign shop that needs the work!
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