24 Jul Understanding the Value of a Community Association
Type the words “Homeowners Associations” and “Property Values” into any search engine and you will be struck by the volume of negative posts and opinions – all from various individuals expressing their individual frustrations with their homeowners associations. What’s interesting is that the dissatisfaction seems to emanate from owners in various states with varied ownership interests.
Are these posts reflecting only the vocal minority? Recent national surveys conducted by Community Associations Institute (CAI) indicate that 90% of homeowners rate their community experience as positive or beneficial. How homeowners feel about their community is vital, but how can we quantify the value of a well-run community?
NeighborhoodLink.com indicates that property values in an inactive association (failure to maintain properly and enforce restrictions) can fall as much as 20%. Can we extrapolate from that statement and expect that an exceptional community association will positively impact property values as much as 20%? Perhaps not – but we can expect that the value of a dedicated Board of Directors, interested homeowners and good, solid association management cannot be underestimated. As communities mature, it is more and more important that Boards balance the need to repair and eventually replace common area components against a likely increase in monthly assessments.
Most homeowners, when faced with the idea of spending an extra $5 per month to improve their property values by as little as 1 or 2% would jump at the chance – this is an incredible return on their largest investment!
As your management agent, our participation and commitment to enhancing the value of your community is key – with solid planning, effective oversight of association vendors, reliable and timely financial statements and experienced manager insight and direction, we assure that homeowners realize the benefits of living in an association and appreciate the positive impact of the association on their investment.