Condition of resale properties is always a concern for homebuyers. Information on property condition starts with the property disclosure statement that is part of the listing. The disclosure provides the age of the roof and major systems such the water heater and HVAC system as well as other known issues at the property. I help buyers assess the potential replacement costs based on the age of the systems. Buyers should take into consideration the additional investment that may be required to replace major systems not long after the property purchase if the systems are near the end of their useful lives. There are some other possible conditions relating to the property that should be evaluated during the decision-making process. Some of the most typical additional factors are if the property is subject to a Home Owners Association (HOA); Covenants, Conditions & Restrictions (CC&Rs); access by a private road; if the property is in proximity to a flood zone; or the property is served by a septic tank. If the property is in a development that is associated with a Home Owners Association (HOA), it is important to review the terms of the HOA. There will be a membership cost involved that can be a small amount or it might be a significant amount depending on the level of maintenance and upkeep that is provided by the HOA. CC&Rs, and many times HOAs, place restrictions on what can be done with the property, so it is critical to review any such restrictions. These could include restrictions on modifications or expansions, the type of fencing allowed and even restrictions on plantings used in the lawn and yard. Ultimately this could be an important factor if the CC&Rs or the HOA regulations restrict the buyer’s intended future use of the property.
Part 3 coming next week. If you have any real estate questions you would like to ask me, feel free to email me at email@example.com.