Monday Market Update: 4 Pillars of HOA Stability

Did you know that approximately 78 million Americans reside in homeowner associations? That figure comes out to be over 1/3 of the US population within over 370,000 homeowner associations nationwide. Perhaps the only thing that varies even more than monthly dues and community types… is how an HOA is run. 

Determining whether to purchase in a multi-family community and which one is a big decision – and can have even bigger implications for your long-term financial commitment and daily lifestyle. Recently, Realtor.com released a read that reveals 4 major considerations to help determine if the HOA you are considering is financially healthy and informationally transparent. 

#1: Ask the past, present & future status of improvement projects. Find out what has been done in the last 3-5 years, if anything is in the works now and what might need to be done in the next 3-5 years. 

#2: Request a copy of the community’s reserve study. Look for items such as the percent funded level, recommended reserve funding level and ensure the data is 36 months old or less. 

#3: See if there is a record or pattern of multiple insurance claims; while not all claims are required to be disclosed – you can and should ask about significant claims, pending lawsuits and any insurance premium increases in the last few years. 

#4: Do a vibe check! Speak with residents about the responsiveness of the board, the culture of communication and observe interactions firsthand if you can. 

There is a LOT to know about owning in an HOA and assessing the fit of the community for you. Please be sure to work with an agent who is experienced in the neighborhoods you are considering and who has the expertise and desire to empower you in making a great decision! 

Cheers to all who surround us,

Bobbi 

Bobbi Decker
DRE#00607999

Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
NAR Instructor….“Designations Create Distinctions”
CIPS, SRS, ABR, CRS, SRES, GRI, CLHMS, REI, AHWD, RSPS, MSLG

Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/