Maintaining a home can be a big expense for homeowners. However, it's an essential part of retaining (or even increasing) the property value. As a part of a Homeowners' Association (HOA), homeowners pay fees for maintenance and upkeep, according to the guidelines created by the association. The HOA's goal is to maintain and improve the real estate value of all homes, including local roads and landscapes.
Since the coronavirus bear market bottomed on March 23, 2020, the S&P 500 index has jumped by about 75%. However, the real estate market has only surged since the pandemic began, meaning that available homes don't stay on the market very long. Still, some buyers may have reservations about purchasing a home or condo that's part of an HOA. When it's time to sell a home within the community, the HOA sets the regulations on how homes are sold. If you're a real estate agent looking to gain more clients, knowing how to market homes within an HOA can benefit your business.
An HOA is a community with its own operating system. Realtors must understand how to partner with these organizations to gain ongoing clientele and promote these homes effectively. There are also some challenges to working with HOAs, but it is beneficial to connect with them to broaden your real estate clientele. While HOAs do have their perks, they can place restrictions on customization options (like the exterior color choice for a home). They may also limit parking options for residents and their guests. These factors can make an HOA home a hard sell for a potential buyer. However, a skilled real estate agent knows how to put a positive spin on HOAs and showcase these properties in their best light.U.S. homeowners paid approximately $88 billion in assessments toward community associations in 2016. While there are certain costs that come along with HOAs, many homeowners find these fees to be well worth it. By emphasizing what the homebuyer will get for their money, this can make those dues seem like a bargain.It's also important to keep in mind that landscaping can raise property value by as much as 12%. One great thing about an HOA is that it can allow you to maintain or even increase your home's value over time. Because standards of upkeep must be met, the state of another owner's home or yard won't negatively impact your property value.
These financial outcomes show the level of return on investment with an HOA. These financial gains make HOAs a viable partner to get leads for real estate agents. But how can real estates make the most of ongoing relationships with these housing organizations?
It's best to think of how the HOA can benefit from your services. Here are some ways you can work with an HOA or effectively market homes within an HOA to gain clientele.
It's best to approach the HOA personally to make a connection as an agent. This puts you ahead of the game in creating partnerships with HOAs.
Before showing a client an HOA home for sale, get a background check on the HOA. Check for any legal actions against the HOA, such as maintenance issues. Get information on the HOA's policies and mandates with the owners and make sure they match your client's needs.
With these tips in mind, you'll be in a better position to work with an existing HOA to acquire more clients and market homes more effectively. Ultimately, that can allow you to grow your business and position yourself as a leader in your industry.