The general public comes to us to educate them during their buying process. In certain parts of the country, planned communities might not be as popular as they are here in SW Florida and having an education about those communities is a vital part of your job. I worked with the largest builder in the US for some time and one of the biggest mistakes I saw was when the agent brought their clients in and didn't preview the product before showing it.

There are sometimes fees associated with communities that are not just limited to Home Owners Fees (HOA). In quite a few developments around our area they also have a CDD (Community Development Fees), and in some cases extra "hook up" fees that can add up over the years of home ownership and sometimes drastically change the cost of the home.

For those who are unfamiliar with a CDD, this is a fee that is charged by the county for doing all or part of the infrastructures of the community which could include bringing all utilities to the project, installing sidewalks and roads and also the maintenance for these items. The county does this at the request of the developer  to minimize the infrastructure cost to that builder, the county in turns adds the cost broken down to each home site and will attach a separate tax on to that home owners tax bill, this is known as a non-ad valorem tax. In several communities in SW Florida these extras alone could cost an additional $1600 per year and these numbers are based on a 30 year note because the county places the amount owed on a 30 year bond (if it was $1600 per year that is an additional cost of $48,000 on the amount if the home).

In other cases there might be irrigation hook up fees and capital contributions fees that could also add up. One developer that I know of charges a $800 one time hook up fee to their irrigation system (mandatory), now for some that might not seem like a lot for most buyers out there they do not want to see these types of extra charges.

Also be careful of master and condo association fees, more fees equals more cost per month and these costs can add up. Some in our area can cost very easily up to $800 per month when you add them all up, between the master HOA, condo HOA and various other "fees".

I am not here to slam these developments and try to convince your clients to buy in scattered lots throughout your areas. Almost all of these developments offer beautiful amenities and views that might not be available in other parts of your town. But as they say there is a home for everybody, so as some people might not want to live in these communities others desire it. Bottom line is education and the more you know the better your referrals will be from those happy clients.

In closing I would recommend at least making a phone call to the builders on site sales agents and inquiring about what "extra fees" might be associated with these developments if any. It is better to educate your clients prior to wasting their time with a product that in the long run could cost them more than they are willing to spend in today's market.

Please comment and share on this blog as the only was to better ourselves is through communication and education.

HAPPY SELLLING!