BluefoxToday blog : What All Home Buyers Should Know About Neighborhood Recreation Facilities

What All Home Buyers Should Know About Neighborhood Recreation Facilities

swimming poolIf you are purchasing in a planned development, there may be a recreational facility, or one may be planned for the neighborhood. While such amenities are great, you must familiarize yourself with the facility, the management, and the documents pertaining to the facility. If the recreational package is planned but not yet constructed, find out what guarantees exist to insure construction. Builders and developers with the best of intentions sometimes get caught in adverse market conditions—such as the past two years—and find themselves short of cash. Good intentions will not construct a facility costing hundreds of thousands or even millions of dollars. Don’t base your purchase upon a wonderful facility that may never materialize. Talk to other homeowners and see if the projected date of completion has already been postponed.

 

It’s a good idea to speak to the president of the homeowner’s association if there is one is in place. Ask about repairs that may be planned or needed. Does the association have sufficient reserves to complete the work or will it be necessary to assess homeowners for needed funds. Such assessments are quite common and, in mandatory associations, participation is not optional. Associations have the power to place liens on any home where the homeowner refuses to pay and could even force the sale of a home to collect their fees.

 

Recreational facilities can be a source of pleasure and relaxation, but, improperly funded or managed, can be a financial nightmare for unsuspecting homeowners. Check out the physical and financial condition of the facility where you wish to live.

 

The Housing Guru: The one source for all your housing questions

Comment balloon 12 commentsJohn Mulkey • October 27 2009 09:07PM

Comments

John - excellent post (as always).  We have several subdivisions in our area that crashed before the developer could put the amenities in.  Unfortunately, many homeowners are upset, but what can you do?  You can't get water out of a rock.  Thanks for the information...I'm passing it on.

Posted by Lina Robertson, REALTOR® Serving Springfield, Nixa and Ozark, MO (RE/MAX Solutions and RE/MAX House of Brokers) over 8 years ago

Lina - Thanks. I've seen it happen before the recession; buyers just need to exercise caution.

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 8 years ago

John- Great post. We also have one HOA that immediately comes to mind where the clubhouse is a shell and is fraught with legal issues. It is important that buyers know, as you say, that the HOA has powers to assess and place liens and here foreclose on your property. When we take a listing in a community as such, we first call the HOA, get the current picture and the paperwork needed for a potential buyer. Florida has a HOA addendum to the contract with much information to be filled in on it as well. However I have found some agents do not have or give current /correct information . Buyers and their agents should definitely investigate. Thanks for the great reminder.

Posted by Dick and Dixie Sells, Realtors, Tampa Bay Florida Homes For Sale (Sells Real Estate, LLC) over 8 years ago

Dick & Dixie - Just another reason why buyers need an experienced Realtor to help them.

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 8 years ago

John, great recomendation and soo important. tks for sharing

Posted by Barbara Heil-Sonneck, Home Staging Atlanta (Design2Sell) over 8 years ago

Hi Barbara. Thanks for visiting!

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 8 years ago

Great advice for any home buyer!

;)

Posted by Betina Foreman, Realtor, C.N.E., with WJK REALTY (WJK Realty) over 8 years ago

Betina - Thanks for visiting!

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 8 years ago

John - Good Advice!  It is also important to make certain to check into the homeowner association before purchasing. . .Some associations already have lawsuits against them that all of the homeowners will end up paying for.  Also, moving into a planned unit development that has recreational amenities that you may not use, is another consideration.  I remember one older widow that wanted to buy into one such PUD, that had golf, tennis and swimming.  She didn't do any of those things.

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) over 8 years ago

Myrl - More great info. Thanks.

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 8 years ago

Hi, John. Good post. Anger and outrage won't help you once it's too late and you arrive at the grim realization that all you have is a bunch of empty promises. I myself learned a long time ago that  "for now" might well mean "forever."

Posted by Leslie Helm, Real Estate For Trail Riders (Tennessee Recreational Properties) over 8 years ago

Leslie - Especially in today's market.

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 8 years ago

Participate