There are several neighborhoods in our area that saw the developer go under before the amenities were built. Good information for anyone that is thinking of buying a home in a neighborhood that is not fully developed. Thanks to John Mulkey for sharing.
If you are purchasing in a planned development, there may be a recreational facility, or one may be planned for the neighborhood. While such amenities are great, you must familiarize yourself with the facility, the management, and the documents pertaining to the facility. If the recreational package is planned but not yet constructed, find out what guarantees exist to insure construction. Builders and developers with the best of intentions sometimes get caught in adverse market conditions—such as the past two years—and find themselves short of cash. Good intentions will not construct a facility costing hundreds of thousands or even millions of dollars. Don’t base your purchase upon a wonderful facility that may never materialize. Talk to other homeowners and see if the projected date of completion has already been postponed.
It’s a good idea to speak to the president of the homeowner’s association if there is one is in place. Ask about repairs that may be planned or needed. Does the association have sufficient reserves to complete the work or will it be necessary to assess homeowners for needed funds. Such assessments are quite common and, in mandatory associations, participation is not optional. Associations have the power to place liens on any home where the homeowner refuses to pay and could even force the sale of a home to collect their fees.
Recreational facilities can be a source of pleasure and relaxation, but, improperly funded or managed, can be a financial nightmare for unsuspecting homeowners. Check out the physical and financial condition of the facility where you wish to live.
The Housing Guru: The one source for all your housing questions
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Lina Robertson Jones
Owner/Agent
RE/MAX Solutions
1715 James River Road
Ozark, MO, 65721 |
Mobile: (417) 844-7265
linarobertson@remax.net
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About the author: I am full-time REALTOR® with RE/MAX Solutions in Springfield, MO, and a member of the Greater Springfield Board of REALTORS®. I have helped hundreds of families in the Springfield, Nixa, Republic and Ozark real estate markets, whether buying a home, or selling a home. Visit my website at www.ozarks-realestate.com to search for All Springfield MO Area MLS listings. Want to know what our market is like? My website is also an excellent resource for current Springfield MO Area Real Estate Market Reports, as well as current market reports for Ozark, Nixa, Republic, and Rogersville.
Sounds like a winnner as people do havve this in their criteria. We have none of those in my area but know other areas have them.
Lina - Great idea! I think a lot of buyers in new construction communities got caught up in the "everything is good" bubble and turned a blind eye on many small things like this. The amenities for a community can always sounds wonderful but it is always good to make sure that the builder is on its toes and has it's bases covered just in case everything goes array.