Everything You Need to Know Before Selling HOA Homes
While making the decision to sell is not always an easy decision for homeowners, it is only the first of many tasks in the selling process. When it comes to selling HOA homes, there are additional considerations that homeowners and their real estate agents need to understand and follow to make the process seamless for themselves and potential buyers.
Three Tips to Selling HOA Homes
If you are planning to sell an HOA home, here are three vital things to remember during the process.
Gather key information and paperwork.
While all real estate transactions require paperwork, selling an HOA home requires additional information, and some states have laws on what has to be disclosed before selling. It is best to gather these documents before listing a home, so it can be provided when necessary. Make copies of the HOA’s CC&Rs, bylaws, regulations, restrictions, HOA financial information, cost and use of fees, pending special assessments or community projects owners are financially responsible for, and the association’s master insurance policy.
While it may seem excessive, potential buyers have the right to review these documents for information on how the association rules will impact their lifestyle.
Notify the homeowner’s association.
It is recommended that sellers notify their homeowner’s association of their intent to sell a property. By informing the HOA, the board can calculate any remaining association dues or fees owed. Sellers will be responsible for paying these before they sell.
Ask about HOA rules.
Some associations may have regulations that need to be followed for the transaction to go smoothly. A common HOA requirement is that sellers must obtain a home inspection report to submit to the board for review. Another common requirement is that HOAs can charge a fee to transfer paperwork from one owner to the next. This fee is usually the responsibility of the seller to pay. Additionally, there may be rules about for sale signs and open house restrictions.
Selling a house and moving on to the next chapter is always an exciting time. Avoid extra stress by preparing for special HOA requirements in advance. If time allows, look for a real estate agent with experience selling HOA homes to make the process more efficient for all parties involved.
AR Management Company can assist your homeowner’s associations with ongoing community management, property, financial, and communication needs. To find out how we can help contact our office today!