- What is an HOA Inspection?
Just as a home inspection tells you your home's condition, an HOA inspection helps you understand all essential aspects of your homeowner's association. An HOA Inspection is an objective, fact-based, and easy to understand report. It includes a financial analysis of the HOA (comparing it to thousands of properties in the region and the country), a summary of all relevant bylaws for owners and investors, an exhaustive list of potential signs of trouble (including litigations, foreclosures, crimes) and factors that affect mortgage options.
- Why do I need it?
On average, HOA expenses are between 30% and 40% of housing costs. We believe that everyone paying such a significant sum every month should know what happens to their money. An HOA which is not in a good situation can cost thousands of dollar to its constituents. A potential special assessment if the HOA does not have enough reserves can be extremely detrimental. On top of that, HOAs impact large parts of their owners' lives – from what pets are allowed to lease restrictions. Knowing your rights and responsibilities could help you make better decisions. If you are a buyer, it is always good to see what you are buying into, and if you are already an owner – wouldn't it be great to know if you are overpaying for gardening or insurance or if maybe your bylaws are too restrictive?
- How should I use this report?
It is really up to you. If you are a buyer, you can negotiate a better price if a special assessment was just levied or pass on the property altogether if there are serious fundamental issues. If you are an owner, you can either hold your HOA board accountable or show your fellow co-owners that you are doing a great job as a board member! Additionally, you will see how much is your HOA spending on each of its expenses – this will navigate you to what needs to be renegotiated (imagine you are paying double what you are neighbors are for gardening). Our bylaws, rules, and regulations summary will also help you know your right and responsibilities. On top of that, the report will show you if a given property is FHA/VA and if it satisfies Fannie Mae and Freddie Mac criteria – all crucial for mortgage financing.
- I am considering buying in a building that has a low HOA score. Should that stop me from buying?
Not necessarily. However, it will navigate you to the right questions to ask the seller and the HOA. Of course, the HOA inspection can point to fundamental issues, in which case we might advise against the purchase. It will all be highlighted in an easy to understand format.
- How long does it take?
The report takes two business days from the moment we receive the HOA documents. You can provide these yourself (just ask your HOA or the seller), or we can do it on your behalf. Quite often, the documents are available online for a small fee, in which case we can purchase them on your behalf and pass them to you at cost. We will, of course, ask for your permission before we do it.
- How do we construct an HOA score?
The HOA score is based on four pillars: Financial, Bylaws, Operations, and Mortgage Factors. Our report is broken down in the same four categories, and behind each of these, there is a proprietary model based on thousands of properties and statistical analysis.
- Can an HOA score change over time?
Yes, 100%! Our goal is to work with HOAs and help them improve their score – from managing their finances better to enhancing the governance community's governance
- I am not happy with the report. Can I get a refund?
Of course, you can. Just let us know, and we will refund you through the same payment method you used.
- How do I get a discount coupon code?
Sing up for our blog or shoot us an email and will send one your way.