Planned communities have community clubhouses, pools, restaurants, exercise facilities, and heightened security. These amenities make the investments worthwhile for buyers, and they help the gain exclusivity by purchasing the real estate. Properties in a subdivision give families access to brilliant features and a sense of prestige. Reviewing requirements for buying subdivision homes shows buyers what they should know.
If it’s New, the Builder Might be the Seller
Subdivisions are often managed by the builders or a real estate company that has an existing contract with the builders. These developments require careful planning, and business partners such as real estate businesses might have exclusive listings for the property. This means buyers must contact either the builder or the contracted real estate company to purchase the home. Agents with exclusive listings in subdivisions don’t share listings with outside agents. Essentially, the buyer must contact the listing agent, and they cannot use a different agent even if they have a history with the buyer.
Homeowner’s Associations Have Rules and Guidelines
Homeowner’s associations manage the subdivisions, and they create rules and bylaws for the community. By purchasing a property in a subdivision, the buyer agreed to comply with these rules and bylaws. The homeowner’s association includes property owners in the same planned community, and if an owner has an issue, they must schedule a meeting with the HOA and other residents in the community.
There May Be Restrict Mortgages
For planned communities, the builder or their real estate partners can restrict mortgages for purchasing a property in the community. For example, if the developers established the subdivision for military families, buyers must qualify for a VA mortgage. If the property is in a rural area, USDA mortgages could require. Some builders could limit mortgages to prevent buyers from using the property as a second or vacation home. Buyers can learn more about mortgage restrictions and requirements for subdivision properties by reviewing options from Dustin Dimisa now.
Keep an Eye Out for Discriminatory Practices
Federal laws prevent sellers from utilizing any discriminatory practices to prevent individuals that residence deem as ‘undesirable.’ The laws prevent sellers from denying an offer because of the prospective buyer’s race, gender, sexual orientation, or religion. Sellers cannot deny buyers who qualify for the mortgage according to current lender laws a chance to purchase the home based on any prejudice.
You Must Get Approval for Additions and Exterior Features
After the purchase, the homeowner cannot start any renovations that change the exterior of the property without HOA approval. If the HOA guidelines prevent fence installations, the owner cannot build a fence on their property without getting approval first. Lenders recommend a full assessment of all HOA bylaws and rules before purchasing a home in a planned community.
Subdivisions present buyers with exceptional amenities that are exclusive to homeowners only. Investing in a subdivision property gives the buyer access to these on-site amenities. Reviewing requirements imposed by the builder or Realty Company guides buyers and prevents issues with financing. Buyers can learn more about purchasing a home in a planned community by contacting a lender now.