Community Resources: Tips for First-Time Buyers in HOA Communities

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Community Resources Tips for First-Time
Buyers in HOA Communities
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Community Resources

• Great homeowner associations (HOAs) provide
  valuable community resources for residents.
• They do so much more than issue violation
  letters.
• HOAs help create vibrant neighborhoods that
  connect people and help shape their lives in
  meaningful ways.
•  
• First-time buyers can benefit by knowing a few
  things before purchasing a home in a HOA.
• The following tips will help buyers avoid any
  surprises and prepare them to take advantage of
  all the community resources the HOA has to offer.

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Community Resources

• Tip 1 Make a Commitment to Education
•  
• Buying a home in a HOA neighborhood involves more
  than a typical house or condo purchase.
• Buyers also become part of an association with
  obligations, restrictions, advantages and
  community resources.
• Therefore, its absolutely necessary for
  potential homeowners to educate themselves not
  only prior to the purchase, but throughout the
  time they own property in a HOA.
• The more a person knows about HOA operations, the
  more he or she can avoid possible issues or
  costly misunderstandings.

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Community Resources

• Tip 2 Carefully Evaluate HOA Documents
•  
• The HOA produces many documents.
• As overwhelming as it may seem, first-time buyers
  must vigilantly examine, at a minimum, the
  following documents.
• If anything is unclear, they must seek expert
  advice.
•  
• Covenants, Conditions and Restrictions (CCRs)
• By-Laws and Regulations
• Meeting Minutes for Prior Year
• HOA Financial Statement
•  

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Community Resources

• Tip 2 Carefully Evaluate HOA Documents
•  
• The information contained within the stated
  documents is crucial in determining the financial
  strength of a HOA.
• First-time buyers can learn about planned special
  assessments, capital improvements, cash reserves,
  pending lawsuits, dues increases and other issues
  that could have a major affect on the HOAs
  finances.
•  
• The documents will also highlight the necessary
  restrictions everyone within the HOA must abide
  by for the betterment of the neighborhood.
• Common questions for first-time buyers typically
  involve pets, parking, noise, exterior changes,
  rentals and more.

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Community Resources

• Tip 3 Understand Individual Financial
  Obligations
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• When buying a property within a HOA, residents
  agree to pay their share of common operating
  expenses in the form of dues and assessments.
• Monthly dues may be billed for common HOA
  expenses such as grounds maintenance, pool
  service, fitness center operation, road and
  sidewalk maintenance, security, management fees
  and more.
• Special assessments may be imposed if the HOA
  members approve a major expense.

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Community Resources

• Tip 3 Understand Individual Financial
  Obligations
•  
• The terms and amounts of these special
  assessments will vary depending on the nature of
  the requirement.
• First-time buyers and residents must fully
  understand their financial obligations to the
  HOA.
• In addition, they should know what expenses their
  dues cover. If anything is unclear, they should
  seek clarification.

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Community Resources

• Tip 4 Evaluate the Management
•  
• In many cases, especially in larger HOAs, a
  professional management company will help manage
  the association.
• Since professional managers attract talent from a
  variety of disciplines, theyre able to put
  together a team that delivers valuable community
  resources.
• Through a variety of proven programs and
  techniques, professional managers can improve the
  quality of connections between homeowners and
  boards.

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Community Resources

• Tip 5 Identify the Amenities
•  
• An in-person visit will shed further light on the
  condition of the amenities, such as pools, spas,
  tennis courts, fitness centers, game rooms and
  more.
•  
• However, potential buyers should dig deeper by
  asking current residents some questions about the
  facilities.
• Are the facilities over-used or under-used at
  certain times?
• Are the facilities properly maintained?
• Have the facilities been closed for long periods
  of time in the past year?
•  
• Its also important for potential buyers to get
  copies of all rules and regulations governing use
  of HOA amenities.

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Community Resources

• Tip 6 Evaluate the Community Resources
•  
• Finally, first-time buyers in a HOA have a
  wonderful opportunity to become connected with
  their neighbors.
• The right HOA will have a wealth of community
  resources in place including organizations,
  events, activities and more.
• During their evaluation, first-time buyers should
  get a sense of neighbor participation and
  neighborhood pride.

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Community Resources
A well managed HOA with abundant community
resources helps build strong neighborhoods. And
strong neighborhoods provide the foundation for a
great America.   AAM works with many of the
largest homebuilding and community development
companies in the United States such as Del
Webb/Pulte, Shea Homes and Meritage Homes.
Founded in 1990, the company employs 370 people
and manages over 400 communities in the United
States. AAM is dedicated to delivering total
peace of mind to the Boards of Directors and
homeowners in the communities it manages.
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ABOUT THE AUTHOR
Jason Tucker is VP of AAM Edge Sales, a dynamic
and exciting new online community from Associated
Asset Management that delivers trusted and
relevant information to homeowners. Learn more
about Community Resources by visiting
http//www.HomeownerResources.com.