Real Estate news

What is a Home Owner Association and do I want a home in a neighborhood that has one?

 The Home Owners Association in certain neighborhoods is usually enacted by the developer before he starts the project. The developer does not want the home values to go down in the neighborhood while he or other builders are still building there, so he put restrictions on the homeowners. By making it where he controls certain things that pertain to the look of the neighborhood.  So it is usually stated that the builder/ developer controls the home owner association until he has built out at least 70% of the lots or what ever he has so stated ahead of time in writing. Then he turns over control to the home owners to carry on the association. If no one steps up to control it, it could be disbanded. Or you can participate and your voice will be heard as to what you want done.  It is not all laid out on one person. You get to nominate people and jobs. Meetings are announced in advance. So attend them if it matters to you. It is always good to know what is going on.

 The Home Owners association usually charges a monthly fee to the home owners and can be paid either biannually or annually, not always monthly. This fee is used towards the maintenance of the entrance of the neighborhood. If they neighborhood contains any common areas( areas that are used by all the residents) such as parks, picnic areas, ponds, pools, fishing areas, tennis courts, golf courses or what ever can be used by the people. Most of the big items will have additional fees or a higher annual HOA fee. But it benefits those who wish to live there or use the facility.

Your typical HOA restrictions may be, fencing requirements or guide lines, Storage building Types allowed. Maybe rules as to painting exterior of the home,  No Antennas, No Clothes Lines,  No Parking in the street,  No cars up on blocks, No Trash in the yards, Yards must be maintained, Cutting of trees may have to be approved.  But these are all things that need attention in order to keep the neighborhood values up.

Have you ever lived in an area that you wished to sell, and you wanted to direct the buyers to come a certain way, so not to pass by an unsightly property? Or would you like it if your neighbors painted their shutters and trim a neon blue just to make your place harder to sell. What if your neighbors hardly ever cut their grass, and had all kinds of trash in their yard ( cars on blocks, old tires, and all sorts of other things).  Well HOA are formed to prevent just these things from happening. You may think that it is o.k. if your neighbor has a 30 - 40 foot Radio antenna. But all these things combined, just bring down the look of the neighborhood. Buyers are riding by, looking to see just what kind of people live there, and are not noticing the homes, for the yards.

Homes are appraised based on the other homes around that one.  And your neighbors home could very well lower the value of yours, when it comes time to sell. And some people do not want that to happen. So they want to be in a neighborhood that governs every ones actions. And most people, that live in that neighborhood, you will find , genuinely care about their home and yard and want it to be a nice place.

Now like out in the country or older neighborhoods, where you do not have any HOA's, you see a mix of everything. Because anything goes, there are no rules, no regulations. You can not control what your neighbor does in their own yard.  They can have several old junk cars, trailers, boats, tractors and anything they feel like leaving there. No one can tell them what type of fence to put up. So you see, a mix of chain link, privacy fence, Barb Wire, Hog Wire, Split Rail, or any type they wish to pay for or is given them. You may ride by and see their underwear hanging on the clothes line for days. Most people there, just do not care or are incapable of such.  They do not wish to have all those rules. It is their home, they paid for it, and they will do what they want with it. And they have that right.

But you as a future home owner must make a decision as to what you want. Do look over the HOA agreement before deciding to purchase to make sure this is something you can live with.  Different neighborhoods have different rules and charge different fees to cover the expenses needed for the common areas or entrances. Some are more elegant than others and require a bigger expense to maintain.  But remember the look and feel is what made you interested in the first place. And it will be your friends, loved ones and possibly colleagues coming to visit you.

I want to thank all of you for visiting my blog,If you have any Real Estate Questions, Please ask, others wish to know also. Please also check out my web site for further buying or selling info.

And come back again as it gets updated regularly

Lynn Rawlinson, Associate broker, Realtor,ABR, CSP

Aronov Realty, Prattville

678 McQueen Smith Rd N.

334-467-5727      email: fnd14u@aol.com

LynnRawlinson.com

www.tricountyhomepages.com

Ever thought you may want a home in the country? Would it be nice to live outside the city limits?

 Rural Properties maybe just what you are looking for. And if you are, you will want to know about this loan.

USDA Rural Housing Program

100% Financing

6% Seller Concessions

No MI

This is not available to all properties. You must check to see where it applies. And you must still meet the approval process. I am not a lender, so I will not pretend to know all the details about this loan.  I just know that I have a few listings on my web site that may be eligible.

One of them being 1338 County Rd 43 in Prattville, Alabama. Listed at $165,600. A 3/2 on 4 Acres 

102 % Financing Available No Monthly Mortgage Insurance

Here is what it would look like for a Home priced at $244,900

Purchase Price :                               $244,900.

Estimated Closing Cost and Prepaids      $6,600

2% Funding Fee                               $4,898

Total Cost of Home                           $256,398

Less Seller Paid Closing Cost (Negotiable) - 6,600

Less Loan Amount( Including 2% Funding Fee  - 249,798.

Total Estimated Monthly Payments with Taxes and Insurance ....About $1,756 mo. Depending on current interest rate (this changes)

Cash From Borrower to Close         = Zero ( Priceless)

Talk to your lender. See if they provide this loan. For more information on this loan type, you can contact : 

Richard Behr

Equisouth Mortgage, Inc

Tel: 334-409-9300

Fax: 334-409-9370

Cell: 334-315-2610

I am not affiliated with this lender in anyway.  I just know for a fact that this company offers this loan.

Just a Thought: This may or may not be the loan for you.

Wouldn't be great to buy a home.  And Not have to use the money you have in the bank. Use that money instead to update the home or purchase items for the home rather than use it for the down payment. Or just keep it for a rainy day. Your Kids may want a Pony.

Thanks for Visiting my Web Site.

www.tricountyhomepages.com

Lynn Rawlinson, Realtor, Assoc. Broker, ABR,CSP

Aronov Realty

678 McQueen Smith Rd N

Prattville Alabama 36066

email: lynn.rawlinson@aronov.com

#334-467-5727