Resale Disclosures: What They Are & Why They’re Needed
If you are selling your townhome, condo, or single-family home that is legally platted within a registered Association, you are required by Minnesota state law to provide a “Resale Disclosure Package” to the potential buyer. This “package” consists of a number of items, including: Copies of the Governing Documents (Articles of Incorporation, Declarations, Bylaws, Rules, recorded Amendments, etc.) Financial Statements Resale Disclosure Certificate Perhaps the most important component is the Resale Disclosure Certificate. This document must be dated not more than 90 days prior to the date of the purchase agreement. To name a few things, it includes information such as the Association’s Reserve Fund and Operating Fund balances; if there are any outstanding assessments (“dues”) or special assessments against the home; if the Association knows of any pending or imminent special assessments; if there are any lawsuits against the Association; and a statement of insurance coverages. By state statute, “the Association, within ten days after a request by a unit owner, or the unit owner’s authorized representative, shall furnish the certificate required….” Additionally, there is usually a fee associated with producing these legal documents. “The Association may charge a reasonable fee for furnishing the certificate and any Association documents related thereto.” See the full statute at https://www.revisor.mn.gov/statutes/?id=515B.4-107 In short, this Disclosure allows the potential buyer to have complete transparency into what they are buying. Most Associations utilize their Management Company to facilitate this requirement on behalf of selling homeowners. We at Sharper Management facilitate all Resale Disclosure requests for our clients. If you are planning to sell your unit, or if you have any questions about Resale Disclosure requirements, please contact us.
Selling in your HOA
Thinking of selling your home? Now is the time! Real estate is hot, hot, hot. The current shortage of homes for sale stems back to Spring of 2020, as COVID-19 hit just before selling season. There is still very limited inventory, but there are plenty of buyers. Because the demand is so high and the supply is low, the value of your home goes up. Mortgage and interest rates are historically cheap, but listing prices remain high. When selling in an HOA, there are certain steps and processes to take. Begin by reviewing your Governing Documents for your Association. Potential buyers will want to see documents pertaining to: Monthly Association fees Master insurance policy Bylaws, rules, & regulations Recent Association financial statements Current special assessments It’s a good idea to hire a realtor who has experience selling properties in HOA’s. They will be able to assist you in gathering all the necessary documents. We also recommend cleaning and staging furniture and décor to really show off the space. This will help them to envision their own items in the home.
The Spring Selling Season Starts Now
Will this spring be time for a fresh start? If you’ve decided to sell your HOA property, there are many things to consider as you prepare. To help you plan, we put together 3 important steps to know in terms of working with your HOA when selling. Be Informed on Your HOA’s Selling Process Most HOAs have rules that members must abide by as they seek to sell their home. If you do not already have that information, then you’ll need to contact your association. Typically, requirements for selling your home will be found in your HOA’s bylaws; it will also be helpful to your agent, if you get one, to know the terms for the seller and buyer to make sure the transfer is clear and lawful. Have Documents Ready Additionally, any serious buyers will most likely want a copy of the HOA’s important documents like rules, regulations, fees, and bylaws to help with their decision. Having those ready to go will make it easier and potentially speed up the selling process. The right agent will also let you know if any other information would be beneficial to your efforts. Close Up Any Loose Ties To help your prospects, it’s also important to address any violations and pay any outstanding fines you may have. A buyer can order a certain certification, provided by your HOA, outlining if you, as the seller, have any past due balances or outstanding violations. You will typically need to clear them up before closing anyway, so taking care of that beforehand helps streamlines the process. This includes continuing to follow the HOA’s rules even as you’re preparing to move to avoid any violations or fees complicating the transition. Overall, we always recommend contacting your HOA to begin the selling process on the right foot. Additionally, your neighbors could be a good resource if they have sold an HOA property before and have any other tips that might help.
Thinking About Selling Your Home?
With interest rates and housing inventory at historic lows, this is a very good time to sell your home. If you’re considering putting your HOA property on the market soon, there are a few things to remember about selling an HOA. A review of the Governing Documents for your Association is a good idea to know what kind of questions may arise during the sales process. If you need an updated copy of your Governing Documents, they are typically available on your Association’s website through Sharper Management. As the seller, you will be required to provide resale disclosure documents about your HOA. These documents contain a wealth of information for a buyer that include things like: Pending litigation about the association Up-to-date information about assessments The Association’s financial status Covenants and restrictions within the HOA Any violations about the unit you are selling Governing documents for the HOA You may request resale disclosures through the Sharper Management website or visit this link directly to learn more.
Getting Ready to Sell in an HOA
Looking to sell your home? During our current global pandemic selling a home come with a few additional considerations. Your realtor will be a wonderful source for guidance, but we’ve compiled a short list of things to consider. COVID Considerations By appointment only. Open houses have been a wonderful selling tool for homes for a very long time. There is nothing like seeing a home with your own eyes. However, the COVID pandemic is making is harder to hold an open house. Many sellers are doing by-appointment-only viewings. Additionally, video showings have become popular. Facebook Live and Zoom are resources for agents to consider. Providing hand sanitizer and/or wipes is a good idea for those who are visiting in-person. Clean and reorganize your space. Ensure your space is clean and organized in case of any last-minute showings, especially when you are actively holding showings. Also try to reorganize your furniture so the living areas appear bigger. This can be as simple as moving a couch from point A to point B, or as intensive as moving bigger furniture pieces into your new home to really show the potential buyers how much space they would be getting. Depersonalize your space so your potential buyers can imagine themselves living there. When you sell your house, you will not be leaving photos of your favorite pet or family gatherings. It is also unlikely that your potential buyers want to keep your family heirlooms, so ensure they are already out of the space before you start showing. While it may seem minor, having an abstract picture will help your space seem like more of a blank slate than a collage from your most recent vacation. Little updates go a long way. Do you have a squeaky door or old hardware? While it might seem like no big deal, making these small changes can have a huge impact on whether people are interested in your home or not. To potential buyers, those are just one more thing they will have to invest in when they buy, so spending an extra $10 for a new hinge or hardware will help your home sell faster. Focus on your kitchen and bathroom, as they are both big sellers. No one wants to walk into the bathroom and see water stains inside the tub or coffee stains on the kitchen counter. Ensure your big-ticket rooms are as clean as they were when your home finished construction. While they may seem like minor issues, just like the updates mentioned earlier, they can make or break a sale. Be flexible with your showings. Ensure you are being responsive and kind when dealing with potential buyers and try to be as flexible as you can. While there are commitments you can’t get out of, like a wedding or family emergency, don’t say no to a showing just because you want to binge-watch your favorite TV series. The more flexible you are will your showings, the faster your home will sell. Choose the right realtor who knows how to market an HOA property. Make sure to ask them the questions you had when moving into an HOA, such as what are some of the rules and fees? Also ensure that they are listing your home on websites such as realtor.com and see if they will bring in professionals to stage and photograph your home. As the seller, you will need to provide resale documents to your potential buyer. You can find this information on our website. Visit sharpermanagement.com and look for the Resale Disclosures link in the menu bar, or Click here.
Spring Is Coming…And So Is the Home Selling Season
Selling Your HOA Property If 2020 begins your moving journey, there’s a few things to take care of as you prepare your property for sale. Staging First of all, staging your townhome or condo is an important part of the process; this helps potential buyers visualize themselves and their unique style in the space. Prepare by hiding personal items like photos, toiletries, and knickknacks. As you start putting those away (or have decided to get a jump start on packing), make sure you label everything. There are specialized apps or ways to utilize default apps (like Notes) to help keep organized. Take a snapshot of each box’s interior so you know where all of your important items are kept. In addition, make a list of things that can be packed in advance and what can be left for later. Decor, for example, can be some of the first packed away-especially if it’s distracting to the eye. Plus, if your closets are too full as you’re showing the space, remove about half of it to make the storage look larger. Try to do the same for any other spaces like your pantry. De-clutter/Recycle A clean and minimal space will also help your sale while allowing you a chance to declutter. When you’re packing, ask yourself if you still need this item. Whether you’re downsizing or upgrading, it’s good practice to go through your things so you’re not dragging around unnecessary items through the years. Re-arranging Ask your real estate agent how you should stage your furniture. They will most likely know what’s popular in interior décor and how your property can fit that trend; see whether a piece needs to be moved to open up the space or put in storage if it’s too distracting. Quick Fix Look for any quick fixes like a leaky faucet or outdated hardware. A simple paint job or updated hardware can be the key to make your space look more modern on a budget. We hope these tips will help you prepare for a successful sale and move. You may find resale documents on the Sharper Management website, or click here.
Selling Your Property in an HOA
Does the recent cut in mortgage rates have you thinking about selling your home? The lower interest rates make it a great time to be seller with potentially more buyers on the market. While spring and summer are known as the peak times in the market, the housing market doesn’t hibernate when autumn hits. In these less frenzied months, motivated buyers and sellers tend to work toward straightforward, mutually beneficial transactions. If you’re considering selling your home, there are a few things to keep in mind regarding selling in an HOA. A review of the Governing Documents for your Association is a good idea to know what kind of questions may arise during the sales process. If you need an updated copy of your Governing Documents, they are typically available on your Association’s website through Sharper Management. As the seller, you will be required to provide resale disclosure documents about your HOA. These documents contain a wealth of information for a buyer that include things like: * Pending litigation about the association * Up-to-date information about assessments * The Association’s financial status * Covenants and restrictions within the HOA * Any violations about the unit you are selling * Governing documents for the HOA You may request resale disclosures through the Sharper Management website or visit this link directly to learn more go to https://sharpermanagement.condocerts.com/resale/
Getting Ready to Sell in an HOA
Prepping for the sale of your home doesn’t need to be an arduous task. Just like selling any other single-family home, selling your townhouse or condo may require a few interior updates and fixes, but there are also a few simple things that you can do that will go a long way in adding appeal to your property. Simple Tips for Selling Clean and re-organize your space – As long as you’re trying to sell your CIC property, you will need to keep it clean and organized in case of any last-minute showings. Rooms should be re-arranged to appear spacious, and storage areas should be emptied, when possible, to make them appear larger. Depersonalize your space – Take down or remove items such are your photos on the wall, religious items, knickknacks, worn-down furniture, and other personal items. Potential buyers want to envision themselves in the space, and a non-personalized space can help them do that. Little updates go a long way – Updating things like cabinet hardware or outlet covers will help the space feel updated without a lot of effort. If your walls aren’t already neutral colors, then re-paint them so they’ll appeal to a wide range of buyers. In general, a new coat of paint will make a space look better. Focus on your kitchen and bathroom – The kitchen and bathroom are big sellers in any home. Make sure they are clean! If your bathtub has mold in the grout, scrub it or reroute the lines to freshen them. Remove clutter from your kitchen countertop space. This will make even a small kitchen seem larger. Be flexible with your showings – Stay courteous and responsive when dealing with potential buyers. Flexibility when setting up a showing will help move you to sale faster. Choose the right realtor – Make sure you choose a realtor who knows how to market an HOA property. Ask questions about where they plan to market your home. Does include a full range of the most popular real estate websites such as Realtor.com? Will they bring in a professional photographer to ensure your online photos make your home look its very best? With these helpful tips, you should be able to expertly present your property to potential buyers. Remember to also play up the benefits of your HOA. As the seller, you’ll need to provide resale documents to your potential buyer. You can find this information on our website. Visit sharpermanagement.com and look for the Resale Disclosures link in the menu bar. Or, click here.
How Associations Work – Sharper Management’s Role
While the elected board of a CIC, or Common Interest Community, operates on behalf of preserving their community, they will most likely hire a management company to aid them in the day-to-day duties. The management company will act under the board’s orders and takes direction from them on how to manage the association under their specific regulations. In some cases, the management company will also assist with the budget process, prepare board meetings, and serve as a consultant in the event of issues in the association’s community. Essentially, management companies are there to make it easier for the board to uphold their community’s standards and investment in their homes. Our role as a management company to many association communities includes helping the board in their administrative, maintenance, and communication duties. Our high-quality service revolves around a culture of communication, teamwork, and growth; we show this through our typical services, which we further outline on our website. In general, our team helps the board manage the maintenance of the community, staffing a 24-hour emergency phone line and help facilitating emergency services, providing and maintaining a web portal that all homeowner and board members can utilize, taking care of all aspects of the financial management of the association, help facilitating various needs or questions from homeowners within the association, and so much more. Our services may differ slightly by type of CIC we are managing, but we follow our overarching values as a locally-owned company dedicated to supporting our partnered associations. We help protect each association member’s investment in a home by preserving the property and streamlining communication between unit owners and the board, the most important relationship in a Common Interest Community. We are proud to be managing the properties you call home, and look forward to continuing to support all members of the association.
Selling in 2019?
Are you thinking about selling your townhome or condo this year? If you are, here are some important things you will want to keep in mind moving forward: You will need to order resale documents When selling in an HOA, there are a few special considerations to remember. The Minnesota State Statute that governs homeowner associations (Minnesota Common Interest Ownership Act – 515B) states that the unit owner must furnish to a purchaser before the execution of any purchase agreement the following documents: [MOU1] the complete set of Governing Documents including the Articles of Incorporation, Declarations, Bylaws and Rules & Regulations, and a release disclosure certificate. To help you gather all of these materials, we have your Association’s Governing Documents on your Association’s website. The important resale documents you need can be found here. https://secure.condocerts.com/resale/ Look for a realtor with HOA experience Hiring a realtor with HOA experience will make the selling process easier for both you and your buyer. HOA–experienced realtors understand the steps needed to sell a condo or townhome and other important information like why resale documents are necessary. Don’t Forget to Stage Your Home Get rid of clutter. Aim for a light and bright look. Stage important rooms first. Remove and/or rent furniture. Rearrange furniture. Add little extras. The finishing touches are always in the details. If you need further information about your property, contact us.