by Mike Colpitts 
Consumers are being urged to investigate homeowner associations – HOA’s in Florida, particularly condo associations where they are considering a purchase.- Hundreds of condo associations have been found to have aging and damaged structures that are in need of repair.
- Association fees have skyrocked as a result but lower prices are making it a field day for perspective buyers looking for deals.
Perspective home and condo buyers are being urged to investigate homeowner associations thoroughly before finalizing real estate purchases. The push to investigate HOA’s is a new develop in Florida following the fallout of many associations that have not taken care of routine maintenance adequately discovered in a series of condominium inspections forced by new state laws.
Hundreds of Florida condos are aging and need major structural improvements that homeowners are now being required to pay for with higher condo association fees and assessments. The higher fees are being implemented to repair aging dwellings before serious damage occurs.
The Surfside condominium complex collapsed four years ago in Southern Florida, killing 98 residents. The collapse triggered a series of state and federal investigations, which led to a new state law that requires condo complexes to be inspected for the possibility of damaged infrastructure. Aging infrastructure is often damaged by corrosion from sea salt and other environmental factors.
The older the building, the chances of damage are higher, which in turn cost condo association owners more money to correct. The move to investigate HOA’s is vital for homeowners and perspective condo owners. Damages are also being found in single family homes, mainly older properties that have not been maintained like they should have been.
Condo association fees have risen as a result, with most condo owners paying double the monthly fees they were a few years ago. Insurance costs are also a contributing factor but have dropped significantly in the past six months and insurance experts expect the rates charged to keep dropping over the next two years.
As a result of the higher association fees, many condos are selling for substantially less than they were. The decline in prices is being felt by homeowners who are unable to afford the higher fees, mainly seniors on fixed incomes. Condo buyers are getting some of the best deals in years as a result in Southwest Florida. If you’re thinking about making a purchase contact Mike Colpitts, who is a certified expert in resort real estate.
Realtors in Southern Florida are advising potential homebuyers to investigate homeowners associations (HOAs) before finalizing property deals, emphasizing their impact on property values and community dynamics.
“There’s tremendous value in a well-run HOA as far as helping to maintain the appearance of a property, maintain the values, maintain maintenance,” said Black Luxury Realty managing broker Nathaniel Crawford said. “It is incredibly important.”
The importance of understanding the role of a homeowners association is critical. Poorly managed HOA’s can negatively impact property values and damage developments if maintenance is neglected. Nearly seven out of ten residences in Southwest Florida are part of a homeowners association.
Buyers need to be aware of not only the HOA dues but also what they cover. A higher HOA fee might be more beneficial if it includes extensive upkeep of homes and condos along with the maintenance of the whole community.
There is an arsenal of information available online to initially investigate homeowner associations, including Facebook and Nextdoor. Finding out about associations before closing a deal is vital. Participating in an association as an active member can also be advantageous.