Wednesday, April 23, 2014

Questions to ask when your buying a home..Is the HOA Stable or Underfunded?

Questions to ask when your buying a home..Is the HOA Stable or Underfunded?
Questions to ask when Buying a Home, Contact Heidi Hoffman with Keller Williams Realty and the Hoffman Home Team.

Since the Real Estate Market melt down from 2007 - 2010, many communities that have Home Owners' Association (HOA) have had huge reduction in income due to the loss of income from increased foreclosures and short sales that have occurred during this time period.  Some HOA's even went under and those communities are then under the control of Cities.

The reduction income from lack of HOA dues have cause the reserves of these HOA companies to increase dues to the homeowners as well as having to assess special assessments when emergency repairs come up. It is important to check the financial reserves of the HOA.  If homeowners don't pay the special assessments that come up, then those assessment can be placed as a lien against the property and in extreme cases the HOA can foreclose on those properties.

When you are going to buy a home, the first question should be "Does it have a HOA?" and if it does have an HOA then the second question is to ask to see the current financial statements from the HOA.  The Hoffman Home Team will ask for the Seller(s) or the HOA to provide the documentation to the Buyer(s) within a specific time period. As a Buyer you have the right to review all the CIC docs, Financials, Board Meeting Minutes, Budgets, and any other documentation that the HOA has.

To check the status of a registered HOA in the state of Colorado, check out the DORA website. Get The Hoffman Home Team Buyer's Resource Information here. Serach for all homes available through the MLS Metrolist system.

Heidi Hoffman with Keller Williams Realty & the Hoffman Home Team 303-949-9770

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