The Real Estate Transaction Series: HOA Matters

HOA’s, or Homeowners Associations, can be very good to have in place in a community. The HOA’s can serve to enforce covenants, guidelines and be a positive addition to a community. Not everyone likes them and there are plenty of communities that don’t have them. So the choice is yours. But, if you choose to own in an HOA governed neighborhood, then just remember that you agree to abide by the terms of the HOA and agree to adhere to the authority of the HOA.

Some HOA’s are very organized and active in the areas they serve. Some are not. And some, you may not even know exist! This is one area that can affect a potential buyer without them even knowing it.  These situations can be very problematic for a homeowner that isn’t aware of an HOA, or the rules of the HOA. Sometimes there can be an existing HOA that formed long ago and has since faded away and became less relevant to the neighborhood.  Basically, nobody continued to be active and enforce the HOA rules, etc…now forgotten by most, maybe even the sellers of the home you are looking to buy or bought.  But this doesn’t mean the HOA was dissolved and may still exist! That means that you likely need to abide by those requirements.  What if they say that you can’t grow a garden for example, and that’s exactly what you love to do. So you grow your garden then suddenly someone discovers the HOA rules and gardens are not allowed.  Then the rules are enforced on you and your garden! Will it matter that you were unaware of an HOA and therefore the rules? I can’t say.  But you can see the problems it can cause.  Of course, an unknown HOA almost never exists but it can happen and sometimes it does.

So it is very important to find out if there is an HOA, get the details required for public disclosure per the Colorado Real Estate contract, such as the financials, insurance, meeting minutes and actually look though them. Take the time to contact the HOA and find out if there is any planned or likely increase in dues.  Right now, there are plenty of distressed homes in many of these HOA guided communities.  So, many of them may be increasing the fees, charging special assessments, etc…to save from going broke from lack of payment from these distressed homes.  It’s just real important to check it out within your rights via the real estate contract.

Remember, if you know there is an HOA, get the required information and understand it. If you don’t know if there is an HOA, do your best research to find out one way or another. HOA’s are a positive thing and benefit the home owners. Just know that when they exist, you are not only buying a home, you’re also buying into an HOA controlled community and the rules that go along with them.

Note: This article is intended to provide general information and is not intended to provide specific advice.

Questions?
If you have specific questions about your specific real estate transaction, contact your real estate agent.  If you don’t have one and have further questions, I would love to help with all your Denver real estate needs.

HOA Matters is the 2nd Post in my Real Estate Transaction Series.  You can also read the first post here on my Denver Real Estate Blog:  The Real Estate Transaction Series: Deadlines and Dates

Click Here to Search All Denver and Highlands Ranch Real Estate

Steve Scheer, Denver REALTOR®

For More Info on Denver & The Suburbs:

Highlands Ranch Real Estate
Greenwood Village Real Estate
Denver Real Estate
Lone Tree Real Estate

If you would like more information on the Denver area or more information on Highlands Ranch real estate, contact Steve at 720-849-6101.

Often times when working with different types of Denver real estate clients, there are many questions regarding various parts of the real estate contract.  Every state is different, and this series of posts will cover different parts of the real estate contract in Colorado.  Stay tuned for future posts on other areas of the real estate transaction.

Real Estate Transaction Series: Part 1 Deadlines and Dates

In Colorado, the real estate contract has a table of dates and deadlines for the many parts of the transaction. The purpose is to keep the transaction on task and create deadlines pertaining to the rights and responsibilities of the buyer and seller.  Basically, things in a real estate transaction need to get done and these dates define how long everybody has to do it.

The dates and deadlines are created at the time of contract and stretch between the contract date and the closing date. The dates are agreed to by the home buyer and seller by contract and have rights and responsibilities for either party to make sure they are met. For example, there is a deadline and date by which the buyer may inspect the property and either terminate or ask the seller to repair or replace those items of concern to the buyer. If the buyer doesn’t terminate or ask for repairs on or before the deadline, then the buyer waives the right to ask and expect the seller to comply.  If the buyer elects to terminate the contract based on these inspection rights, and does so on or before the deadline, then the buyer had the right to do so per contract.  In either case, the contract defines the rights and responsibilities of the parties and the dates and deadlines set the time limits.  As you can see, the deadlines and dates of the contract have a very real purpose and very real consequences to the parties.

The key value of having the dates and deadlines is to keep the transaction moving on course towards closing.

Of course, like most things these dates in a Colorado real estate contract can be negotiable and may be determined and amended as long as all parties to the contract agree to it. Just remember to understand your rights, responsibilities and the potential consequences of the deadlines and hopefully you can stay on course towards a successful closing!

Note: This article is intended to provide general information and is not intended to provide specific advice.

Questions?
If you have specific questions about your specific real estate transaction, contact your Realtor.  If you don’t have one and have further questions, I would love to help with all your Denver real estate needs.

photo courtesy of John-Morgan on flickr with Creative Commons license

Read also:

The Real Estate Transaction Series – HOA Matters

Click Here to Search All Denver and Highlands Ranch Real Estate

Steve Scheer, Denver REALTOR®

For More Info on Denver & The Suburbs:

Highlands Ranch Real Estate
Greenwood Village Real Estate
Denver Real Estate
Lone Tree Real Estate

If you would like more information on the Denver area or more information on Highlands Ranch real estate, contact Steve at 720-849-6101.

Beautiful new Parker real estate listing in the Anthology neighborhood

This fantastic Richmond Russell model home is tucked away in the beautiful Anthology neighborhood with school, parks and pool all within walking distance.

You will be sure to enjoy a carefree and easygoing lifestyle with all this wonderful Parker CO community has to offer.

Once inside, be impressed with gorgeous wood floors, vaulted ceilings and custom paint.

The large kitchen has a center island and opens to the family room, perfect for entertaining or just relaxing.

The main floor bedroom can serve as a study with an adjoining bath. Upstairs, three bedrooms share a large bath and the convenience of an upper laundry. No more hauling clothes up and down stairs!

The master suite is huge, with his and hers walk in closets and a private 5 piece bath.

The full walk out basement is framed and ready to complete to your taste.

Click to see the tour of this beautiful Parker home for sale!

This is a great opportunity for a first time home buyer, a Denver relocation home buyer or maybe even an investment property.

17985 Bolero Drive, Parker, CO 80134

View a flyer of this gorgeous home here:  Parker Home in Anthology Neighborhood For Sale

MLS# 911265   – $295,000

5 bedrooms –  3 Baths

Approximately 2253 square feet

For more information on this Parker Colorado home, Contact…

Steve Scheer – Denver Realtor®

Denver Realty Partners

Denver MLS IDX Real Estate Listings Search

Denver Real Estate – Denver & The Suburbs

New Listings for sale – Parker Real Estate

720-849-6101

Denver CO Real Estate Market Trends: June 2010

Let’s take a look at the Denver real estate numbers through June and the surrounding metro areas for Residential and Denver Condo Units combined as of June 30, 2010.

(Source: Metrolist. Figures deemed reliable but not guaranteed)

So is our market in good shape? Let’s see.  For June, we can see that the Denver housing market is still most robust in the price range below $300,000.  The average list price is just above $400,000 yet average sold prices reflect the more active price ranges. Comparing the active listing inventory to the number of sold homes in June, we have an absorption rate of just over 5 1/2 months of inventory.  Pretty balanced real estate market in general.  Sellers will average about 80 days or so to sell and they’re negotiating around 7% off their original list price.

Of course, each neighborhood and property type is affected differently and these figures account for all of them.  Homes at the higher end price range in the metro Denver real estate market still struggle a bit in this market with fewer buyers qualified for those purchases and loans tougher to come by at those levels.

Where are we heading? After the deadline for the tax credit at the end of April, under contract listings have dropped off by roughly a third compared to April.  This wasn’t too unexpected, yet the market remains balanced as of the end of June with a big part of this being contributed by the lower price ranges. Sellers need to remain mindful of pricing competitively, condition and effective marketing.  There is a potential for the increase of distressed inventory into the market from the so called “shadow inventory”, which are homes with delinquent mortgages that many lenders have chosen to let ride so far.

So lets be cautiously optimistic for the Denver real estate market. Statistically the numbers aren’t that bad. If your home is struggling or your area is struggling, then pay attention to the numbers and adjust appropriately. Most Denver home sellers are discovering that it is still not an easy market in any way to sell.  If you may be considering a sale, please call me I can help.

Click Here to Search All Denver Real Estate

Steve Scheer, REALTOR®

Denver Realty Partners –

For More Info on Denver & The Suburbs:

Highlands Ranch Real Estate
Greenwood Village Real Estate
Denver Real Estate
Lone Tree Real Estate

If you would like more information on the Denver area or more information on Highlands Ranch real estate, contact Steve at 720-849-6101.

Looking to get your home on the market?  Relocating to Denver and starting your search for a new home?

Start 2010 off right by knowing how 2009 just ended when it comes to Denver CO housing prices.

Click on the link below and read December 2009 real estate statistics and trends for the Denver area real estate market.

Highlighted – Denver & Dallas are leading in home prices in the US.

Steve Scheer, Denver Realty Partners
Real Estate in Denver & The Suburbs

Search all Denver & Denver Suburb Homes Here

If you would like more information on the Denver area or more information on Denver real estate, contact Steve at 720-849-6101.