You decided to make the big leap and sell your home—congratulations! Now that you’ve made this life-changing decision, you may be thinking, “What’s next?” Getting a real estate agent, preparing for showings, packing, cleaning, hiring movers—the list goes on.

However, if you live in a community with a homeowners’ association (HOA), they’ll be part of the process, and there may be more items to add to your selling to-do list. Read on to learn how to sell your home in an HOA and more.

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The Housing Market: Is Now a Good Time To Buy or Sell Your Property?

The 2024 real estate market is red-hot, but also a little tricky. According to U.S. News, if you need to move, understand your home’s value, and aren’t scared of high interest rates, now might be an ideal time to move. Conversely, if you recently refinanced or bought your home, or are concerned about rising market prices and low inventory, it may be best to wait until things settle down.

In the end, whether or not it’s the right time to sell depends on what the seller wants to accomplish. Ultimately, selling your home comes down to the personal motivation to sell. A seller might also consider what the alternative investment may cost.

However, there is good news: if you live in a neighborhood with an HOA, your home may be more attractive to potential buyers and get sold faster. Approximately 75.5 million Americans live in a community association, and that number is growing every day.

5 Tips for Selling Your Home in an HOA

If you decide to make the move and sell your home in an HOA, there are a few things you’ll need to do to ensure compliance and ease the transition. Here are five things you should do when selling your home in an HOA:

1. Communicate with your board of directors.

Provide necessary documentation and let your HOA board of directors or community manager know when you decide to put your property on the market. It’s essential for everyone to be on the same page, and your HOA likely has guidelines that you must follow before you can sell your home. The sooner you communicate, the better and smoother the sale.

2. Read your governing documents.

Your HOA’s governing documents contain specific rules and regulations about selling properties within the HOA. For example, some HOAs have certain notification, listing, fee, and document disclosure requirements and obligations. Additionally, many HOAs have rules that outline when you can actually move out of your home. Guarantee you have a thorough understanding of what is and isn’t allowed in your neighborhood, and reach out to your board of directors, real estate agent, title company, or community manager if clarification is needed.

3. Get familiar with resale packages.

HOA resale documents, also called an HOA resale package, are documents provided to buyers upon purchasing an HOA property. Resale documents include information about the property and association to promote transparency and offer protection to involved parties. The following details are often found in resale documents:

• Closing fees
• Bylaws
• Pending property violations
• Unpaid dues
• HOA financials
• Insurance coverage
• Reserve reports
• Meeting minutes
• Architectural guidelines
  

Most states require sellers to disclose this information to the buyer, so it’s vital to know how to access resale documents, timelines, payment processes, and more. As always, your board of directors, real estate agent, title company, and community manager are there to support and assist you.

4. Address outstanding fees and dues.

It’s critical to take care of any outstanding fees, violations, or dues as soon as possible. While a homeowner may still be able to sell their home with unpaid balances or open violations, the process can be more difficult and time-consuming. Plus, unpaid fees may be deducted from what you earn selling your home or collected by a third-party collection agency.

5. Schedule an inspection.

Many associations need you to schedule and complete a home inspection, also known as a compliance inspection, before moving out or transferring ownership of the property. This is an important seller responsibility and ensures the home adheres to the association's bylaws and covenants, conditions, and restrictions (CC&Rs). Inspections will usually be conducted by an HOA property management company or the architectural review committee.

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Community Living is Easy with TownSq

Living in a community association comes with countless benefits, but the HOA selling process can be complicated. However, by communicating, reading your governing documents, getting familiar with resale packages, addressing outstanding fees, and scheduling inspections early, the transition will be seamless.

TownSq, the leading digital platform for HOA board members, residents, community managers, and management companies, makes moving in and out of an HOA easier than ever. Our top-tier communication, document storage, and engagement features promote streamlined connection and collaboration. To explore everything TownSq offers, request a 30-day free trial here!  

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