Homeowners associations – or HOAs – are becoming a more common sight in the world of real estate. If you’re part of one, they come with some added steps when selling your home. Do you know how to order your HOA resale package documentation for your DC Metro Area house? To make things crystal clear, here’s what you need to know about selling a DC Metro Area house in an HOA.
Do Your Research
Before you get the ball rolling with open houses and showings, it’s very important you thoroughly research any and all bylaws pertaining to your specific HOA.
There are some associations that do not allow real estate agents to install sign posts or for sale signs. This is a big factor because there are still people who find homes by driving around and those who see the homes they are interested online and even drive by to get a feel of the neighborhood. But don’t worry if your HOA does not allow sign posts and for sale signs, Major Key Real Estate has maximum online marketing exposure options to make up for it.
A great place to start researching your HOA’s rules is to refer back to the HOA resale package documentation you may have received when you purchased the house or contact your HOA property manager.
Notify and Comply
Once you’re familiar with what you need to know about selling with an HOA, you need to notify the HOA that you’re planning to sell the property and move. In the DC Metro Area, you will need to supply the future purchaser with a HOA resale package documentation. Sometime this takes a few days to process, sometimes it can take weeks. As you are preparing to put your DC Metro Area house for sale, contact your HOA to see what their normal turn around time is for providing the HOA resale package documentation.
Some HOAs in the DC Metro Area may require notification before anything may proceed with the sale. Failure to follow the bylaws for selling your home in your HOA will almost certainly result in nothing but complications, fines, stress, and frustration.
Inform your agent that your DC Metro Area property is located within an HOA and has an HOA fee.
And if you cannot find the process or instructions on obtaining the HOA resale package documentation, then provide your real estate agent with the HOA contact information and management company information. They are used to it and know how to order docs! Every HOA is different when it comes to ordering docs, but they will figure it out for you! (Benefits of working with Major Key Real Estate real estate market. Sellers are obligated to provide the HOA resale package documentation once under contract to the purchasers and they have the right to review the entire package for a few days. If they see anything they do not agree with or do not approve of, they obtain the right to rescind the contract. Contact Major Key Real Estate to see what the timeline limit it for purchasers for these docs before you put your DC Metro Area house for sale.
When you moved into your home, you were given a new resident packet that contains a lot of necessary information, or you were told where you can find that information online.
This important packet of information is intended to be transferred from one owner of the property to the subsequent owner. It functions to keep everyone informed of what the HOA is, what it does for them, the rules and regulations of the properties under the HOA, and any financial obligations of the owner to the HOA.
There could be additional information contained in this packet, such as HOA budget and explanation of finances, certification of any upgrades or improvements done to your property, and possibly even a copy of the master insurance policy covering your home.
When selling your home in an HOA you need to disclose this to any potential buyers and provide them a copy of the HOA documentation to keep things above board throughout the sale of your home.
The HOA will also include some sort of resale disclosure specific to your property and furthermore, some even will conduct a property inspection and see if your property is under any violations of the bylaws & rules and regulations. As a seller, you must address the violations if there are any, unless the buyer purchases the property AS IS specific to HOA docs.
Know Your Additional Costs
One of the most important things to know about selling your home in an HOA is that you may run into additional costs during the sale of your home, or at least at closing. These costs will also will be different not just from HOA to HOA but also different from city to city and state to state.
Some states are beginning to require payment at closing to the HOA that is a certain percentage of the sale price of the home, while other states, cities, or HOAs may only charge a flat fee at closing. All HOA management companys will process it differently and charge differently, yet a good range to keep in mind is $250-350 with an additional charge for a rush order to be delivered quicker than normal.
Often, the fees charged by the HOA are to cover administrative and clerical costs when transferring ownership between parties. Take the time to break down all of these additional costs and carefully factor them into any negotiations before approving anything.