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Neal Paskvan is a full time Realtor specializing in Downers grove, Darien,Woodridge, Westmont and Du page county Real Estate

How to Spot a Bad HOA | Realtor Magazine

our buyers can avoid their own homeowner association horror story by keeping an eye out for these items during the search.

SEPTEMBER 2015 | BY JILL SCHWEITZER

What’s the difference between a good, mediocre, and downright bad homeowner association? It’s not entirely a matter of opinion. There are specific items to look at and questions to ask that can tell your buyers whether they’re buying into an HOA that will only give them headaches. This information is particularly important in condominiums, where the HOA usually is responsible for maintaining the exterior of the buildings. If they aren’t careful, your buyers could face paying a big special assessment for years of neglected capital improvements after they close. The bill they’re typically stuck with could be anywhere from $1,000 to $30,000. (In some cases, they've gone over $100,000!) Help your buyers perform due diligence before closing by assisting them in identifying issues to minimize the element of surprise. While this isn’t intended to be legal advice and there may be other items to look at other than those mentioned in this article, this should give you ideas for how to advocate for your buyers when dealing with HOAs.

Look at the Community as a Whole

Is it run-down? Don’t solely focus on the one property your buyer is purchasing. When the HOA is responsible for maintaining the buildings, check out neighboring units and common spaces along with the home your buyer is purchasing. Here are some telltale signs of an HOA that isn’t on top of its responsibilities:

• Are the fences rusting?
• Are the building signs in disrepair?
• Does the asphalt look like gravel?
• Are the pool and other amenities clean and in good working order?
• What is the age and condition of the roofs?
• Do the buildings need to be painted?
• Are there staircases and balconies in poor shape that the HOA is responsible for maintaining?
• When were the buildings last treated for termites? Have they been neglected, with a higher risk of unknown termite damage throughout the community?
• Are there problems with siding?
• Are there grading issues causing flooding?
• What is the condition of the gutters, fascia, and other fixtures?

CLICKHERE FOR THE REST OF THE STORY FROM JIL SCHWEITZER

Neal Paskvan is a full time Realtor specializing in Downers grove, Darien,Woodridge, Westmont and Du page county Real Estate

Dos and Don'ts of Appraiser Communication | Realtor Magazine

Dos and Don'ts of Appraiser Communication

Forget the rumors that you have to keep silent. But that doesn’t mean your communications still can’t get you in trouble.

AUGUST 2015 | BY DAVID S. BUNTON

Real estate professionals and appraisers both play an essential role in the process of buying or selling a home. It is critical that these two parties work together to ensure that an appraiser provides an independent, impartial, and objective opinion of value that accurately reflects the marketplace. However, we often hear from brokers and agents that they’re unaware of how much interaction they may have with an appraiser, what they’re allowed to say, and what information they can provide. Some incorrectly believe that they are prohibited from speaking to an appraiser at all.

In reality, qualified and competent appraisers welcome any information that helps them do their job. In fact, we at The Appraisal Foundation encourage brokers to actively communicate with appraisers in a professional and productive manner. Real estate professionals should feel empowered to supply relevant materials, including the terms of the sale, applicable comparable sales, and any evidence of notable renovations done to a home that might affect its value. Additional useful data could include records that categorize maintenance and upkeep done to a home, such as regular inspections or replacements of major appliances. These materials will help an appraiser arrive at an opinion of value that accurately reflects the market value of a home.

However, real estate professionals are legally barred from any communication with an appraiser that is intended to unduly influence the outcome of the appraisal. While it might be obvious that coercing an appraiser is off-limits, it is always a good idea for agents and brokers to make sure an appraiser or regulator couldn’t interpret their communications as an attempt to improperly influence an appraisal. An example of improper communication would be asking an appraiser to provide a valuation that matches the asking price of a particular home. Another example could be telling an appraiser he or she will not receive future assignments if the appraisal does not facilitate a transaction.

And communication between appraisers and real estate professionals doesn’t have a specific cut-off point, either. A broker or agent who has questions or concerns about an appraiser’s final report may take formal steps to communicate those concerns and ask for reconsideration of the appraisal report. For instance, a broker can submit additional comparable sales through the lending institution for the appraiser to consider. A broker can also request that the appraiser correct any errors in the report, such as the miscalculation of the number of bedrooms in a home or the total square footage. The appraiser can be asked to provide additional detail explaining how he or she arrived at certain conclusions and the ultimate opinion of value. However, a broker cannot dispute an appraisal simply because he or she is not pleased with the outcome.

At the most basic level, it’s important for real estate professionals to recognize that it’s the duty of competent and qualified appraisers to provide credible opinions of value for homes. Any information that assists an appraiser in that objective is not only allowed, it is welcomed. 

CLICK HERE FOR THE REST OF THE STORY FROM david bunton