Property Values for Condos and HOA Communities

Although property values in Michigan have taken a beating, there are still a lot of things about which members of community associations can be optimistic. More than 80% of new housing is part of a community association, which means that they continue to provide good value for home buyers. In fact, associations that are in good physical and financial condition help keep their members’ property values higher. This requires a commitment to the following:

1. A consistent preventive maintenance plan.  Many communities have deferred maintenance items in an effort to save money, and the physical effects are apparent to buyers.  If you have resisted this temptation, your property values should reflect it.
2. Adequate reserve funds and a good community-wide payment history of fees.  With new regulations for federally-backed loans, lenders need to look more closely at these areas than ever before.

A healthy association will prove a more attractive option for buyers in the fiercely competitive housing market. Is your condominium association or HOA doing what is necessary to enhance property values and attract buyers?

Spring Inspections: Things to Look For

In addition to sod or curb damage that may have been caused during the winter, there are other items which can result from the winter months and which should be checked to ensure safety and property value.

Sidewalks: Freezing and thawing cycles can cause heaving and cracking of concrete. In some cases, the effect is enough to create a trip hazard which not only is unsafe for pedestrians, but also presents increased liability for the Association. These areas should be identified and repaired soon after the snow has melted.

Roadways: Dirt and debris can hinder expansion joints in concrete roadways from working as effectively they should. Spring is a good time to do street sweeping since there has been a lot of runoff from melting snow. This is especially important if sand was used in any of the salt mixtures. Asphalt roadways need to be inspected for cracks or buckling caused by shifting ground.

Irrigation Systems: Sprinkler heads, since they are exposed, are the vulnerable parts of an irrigation system. Because they are covered by snow in the winter, wayward automobiles and snow removal equipment can cause inadvertent damage. Prior to opening the system, damaged heads should be flagged for repair or replacement. Irrigation systems should be opened and ready for operation by mid-May, although the weather will determine when they start being used.