Jeff - I am getting similar concerns about HOAs hurting property values.

Jeff this was a BIG issue here in AZ concerning HOA's and all the power they wanted to control over for sale signs and everything else for that matter.  It was debated for several years and finally the laws were changed. HOA's can NOT disallow for sale signs anymore. The signs need to be within a certain size but that's fine by most people.  Good luck with this issue in Texas.

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This is very short sighted on the HOA's part ! One day they will be Seller's and be affected by this policy ! I could see a 24 hr limit for signs as a compromise .

Jeff,  What they are doing is destructive and just plain stupid. Don’t these people have anything better to do?  

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What the?

Jeff:  I can see where this could be a huge problem and disadvantage for agents and their sellers (buyers too!).  But the upside is that there are HOAs that actually are active ... and although too protective and their thinking might be a bit askew ... taking steps that can be seen as protections for the properties within them.  All too often, it's the opposite I see and hear.  HOAs pretty much silent, inactive, or completely non-existent ...

Hope you can resolve this issue in your area quickly ...

Gene

     Even if the sign is a violation of the Covenants or Deed Restrictions, an HOA Officer or Director or an HOA employee has no right to walk onto private property to confiscate a sign.   This could be construed as both trespass and theft.    

Jeff, so often HOAs and condo associations do things that have unintended consequences.  And they don't understand that they are lowering property values.  Great post.

The owners have to put pressure on the owners to let them know it is in their best interests.  Condominiums have had a lot of challenges in my part of the world.  I don't know how that attitude serves the owners.

Jeff, we haven't run into something that extreme, but I can imagine how upsetting it would be to have your signs stolen. I agree with Fred Griffin Licensed Real Estate Broker , I think it would be actionable. How short sighted...they must plan on never selling their own place!

We used to have a barrier amy college that would always be broken off by random vandals and it was extremely annoying.

Hello Jeff:

I have a different perspective, but I'm not trying to be argumentative.  In our market of Sun City Texas in Georgetown, we have a strong HOA the clearly benefits the community in a positive way.  Specific to your point about open house signs, their primary value is to funnel strangers into properties they know nothing about. If properly advertised with directions in MLS and other venues , interested parties should be able to find an open house with no problem.

Jeff

We have HOAs, as well as some communities, that have very specific requirements, or even prohibitions, about for sale signs. Yep, I think it does have an impact. But some communities are gated and you are not just going to have people driving through looking so not sure how big an impact that really might have.

But there are other things HOAs do that impact values with some of their restrictions, poor care of the property despite collecting fees each month for maintenance, and high fees that are not justified by the care provided, and more. And what about refusing to get FHA approved to allow more buyers who must buy with that type of loan?

Jeff

We have some subdivisions here that won't allow signs even the custom one. Doesn't make sense to me and would be annoying. 

Big issue here in Texas right now, especially in a hot market when subdivisions like Craig Ranch have mandatory signage that takes longer to produce than the home does to sell!

Jeff, by paying to HOA, buyers do reduce their buying power, for sure. And too much of HOA is going to impact the property value for sure.

Like Anna in Phoenix said, we had enough of the HOA crap in Arizona, and helped get the laws changed. 

Anna Banana Kruchten one of the az lawuits was with a house beside my house in Sedona. I didn't see what the issue was, the sign wasn't even ugly.  I didn't understand why the HOA didn't just come up with their own sign design so they were happy and the home owner was happy.

Good morning Jeff. HOA's are a real issue very often, I often wonder if they have the best interest of the unit owners in mind of just being selfish and shortsighted.

In Anne Arundel County, Maryland, Open House and directional signs may be are subject to some restrictions (details here) but sign restrictions aren't a huge problem with our condo and HOA associations. I can see where the situation you describe would be very detrimental to property owners and ultimately hurt property values. On the other hand, it might not be a good thing if there were signs in front of a huge percentage of homes at any one time, so I could understand the restrictions from that perspective.

Seriously, that is just the stupidest thing i've heard in a while. How do they think homes sell? Magic HOA dust? 

We have similar issues in the Atlanta condo market, which continues to be very soft.  HOAs do seem to be a big hinderance in the recovery to the extent that they limit signage and resist becoming FHA approved.  Signs in condo communities are helpful for both open houses and to help ID listed properties.  Sometimes finding the right property address in a condo community is not easy!

We don't really do open houses anymore, but I can see how this would be frustrating.  On the other hand, don't most folks use a GPS these days to find out where they're going?  I wouldn't think that signs being taken down would lower property values.  That seems a little extreme to me.  

Thanks for the post. One of the things that has brought down values in a community that I know is that owners are not allowed to rent it out. When owners have to move they are forced to sell at a low price rather than keep it vacant. It would have been better if they could rent it out .

I once had an HOA president come in to tell me I had to take down my open house signs as one of the neighbors was complaining. I thought is was foolish as how would a potential buyer know where to find the condo otherwise? He agreed and asked me to please remove the signs. I said I would do it right away as it was already the end of the open house period and proceeded to follow him out of the condo.

I can appreciate not wanting a deluge of signs, but I agree they shoot themselves in the foot by being so restrictive. HOA's get a reputation as being cratchety (is that a real word), and although agents form opinions, so do buyers.

Some folks have nothing else to do with their time but to police the neighborhood regardless of consequence.

I have a condo listing with an HOA that doesn't allow sale signs at all.  There is no doubt that this is hurting sellers.  Comps are much higher for similar properties nearby without HOAs.

You are correct that when signs are not permitted on a property it does make it a bit more difficult to sell the property.  We have the same issue here with HOA.  To get around this we use balloons to indicate an Open House.  Also, place a sign at the entrance to the community not on HOA property is usually permitted, but coordinate this with the association first.

Good Morning Jeff: Too restrictive regulations can be very problematic. And most of the time, they tend to become constrictive to live with.

yes to keeping all things equal when a group gets together or even more intimately lives together as neighbors...Hard to please all

I live with an HOA and they have the same rules. There's a home on my street for sale, but you only see the signs when they have an open house. Honestly, I wouldn't mind a for sale sign in their front yard or something. I don't see it as an eyesore. Not really sure what the big deal is.

Every so often you do get a bit of a "crazy" hoa who makes stupid rules. I say contact the home owner and have them get a committee together to change the rules.

Jeff, I had this happen to me once and posted a blog about it.  I had a minivan, so I parked it in front of the house with the open house sign in the back window, they couldn't get to it since the van was locked and no one said a word to me.

I've noticed homes in gated HOA communities with strict rules tend to sell less than comparable homes in close proximity without HOAs. 

It seems, all too often directionals and Open House signs are misplaced, sometimes obstructing the view of incoming traffic, or placed on a homeowners lawn without permission.  Unfortunately, HOAs are trying to protect the homeowners, not realizing they may be hurting potential sales.

Jeff, we have the same issues here in Virginia. We have a condo/townhouse complex in Woodbridge Virginia that does not allow any For Sale Signs what so ever on the property. Open house signs are allowed on the day of the Open House. Prospective home buyers driving the neighborhood have no clue if a home is for sale unless they are using a Mobile App.

Hi, Jeff!  Just to let you know - I included this post in today's Last Week's Favorites!

We have an HOA like that here. Most propeties are 25k to 100k I cannot aford it and don't list there.

There are out of control HOAs all over the country, from what I have read.  I was once holding a broker's open in a neighborhood when the property manager rang the door bell and threw my signs into the foyer of the house.  To bad for him, I was a resident of the neighborhood and knew for a fact there was no prohibition against the signs.   Other resients heard about it and when contract renewal time came, the HOA went with a different association management company after having been with him forever.  Never have understood why some people have to be no difficult

I hear ya!  I like the proposed solution you provided. Hopefully, those type of HOA's will see the realtor's perspective.  In fact, they should focus their efforts on residents who don't maintain their yards and upkeep of their homes.  If you have 10 or so OH signs, that can be expensive if they're confiscated.  I know a fellow realtor who went to the HOA and demanded to find out where her signs went.  Well, she spend the afternoon dumpster diving and fetched all of her signs! Thank goodness!

HOAs sometimes go too far and this is the case with the open house signs.  I'm not sure if this is the reason, but I think sometimes a little authority can go to people's head.