With scores of newcomers moving to the Austin, Texas, area every day, more planned communities are springing up to meet the housing demand. Although the parks, pools and playgrounds they offer are excellent amenities, you still need to know the specifics, like homeowners association fees and deed restrictions, prior to purchasing.
“Austin’s master-planned communities have grown increasingly elaborate over the last few years,” says Matt Menard, broker and owner of Austin Real Estate Experts. “Today’s communities offer a higher level of amenities, and developers are making them mixed use to include retail.”
Some of Austin’s top real estate agents, as determined by real estate technology company Agent Explore (a U.S. News partner), give you the scoop on what you should know before submitting an offer in one of Austin’s planned communities.
Review the homeowners association fees.
“We need to know what the fees are and what amenities are included for those fees,” Menard says. “You’ll see fees like $480 to $600 per year for communities that offer basic amenities like a pool, park, sports courts and walking trails. [In] Sun City, for example, the fees will be more, but will include access to weight rooms, ballrooms, clubs and organizations.”
[Read: A First-Time Buyer’s Guide to Austin.]
Homeowners association fees can vary drastically from community to community, and if you’re planning on living in a golf course community, there may be a separate social membership required. Factoring in all the applicable fees will highlight whether that planned community is a fit for your budget and lifestyle.
Redfin real estate agent Carmen Rhodes says, “Are they for general maintenance like landscaping, or do you have amenities like a fitness center and pool?” She also recommends evaluating the homeowners association’s covenants and laws, and asking if they’ll protect the value of your investment or if they’re too restrictive.
Analyze the amenities.
Just like the fees, amenities vary quite a bit from community to community. Rhodes explains that some communities have features including Olympic-size pools, fitness centers and clubs, while others may only have a playground and park. Because the homeowners association fees often dictate the amount and type of amenities, the higher the fee, the more features are available and the higher their quality will be.
Drive through the community and tour the amenities before submitting your offer so you know exactly what you’re getting from the community. Are the residents enjoying the amenities, or do they need work? Does there seem to be a sense of community surrounding the amenities?
[Read: 5 Things You Need to Make a Successful Offer on a House in Austin.]
Check out the deed restrictions.
Deed restrictions are put in place to preserve property values and offer a measure of protection against unattractive changes, like sheds or loud exterior paint colors. However, you need to understand and agree to these limitations before you purchase a home there.
Certain deed restrictions may prohibit home-based businesses, like day cares, or the number of pets allowed per property. By reviewing the documents, you’ll know what violates the covenants and whether you need to look for another planned community that better fits your needs.
“Sometimes the homeowners association covenants allow levying fines,” Menard explains. “For example, if they say, ‘Bring in your trash cans within 24 hours of trash day,’ and repeatedly send you letters, they may be able to fine you. If they say, ‘Mow your yard,’ and you fail to comply, they may have your lawn mowed and send you the bill.”
Assess the stage of development.
If the community you like is still selling properties and developing, the developer will have significant say over what happens there. For example, the developer might not want to finish building all the promised amenities, like a second pool, until the community is closer to completion.
[Read: What Austin Home Can You Buy for Less Than $300,000?]
However, the plus of having several unfinished planned communities in Austin is that it gives homebuyers more choice and less competition. Rhodes says that multiple-offer situations are still common, but that she and her fellow Redfin agents use their experience to help buyers craft the best possible offer.
Talk to current residents.
Something important that buyers don’t do enough of is speak with the community’s current residents, Menard says. Stop at the community’s park, playground or pool, and ask whether your potential neighbors are happy living there. What’s the general vibe? Do they feel like the homeowners association is well-run and effective? This extra measure of diligence could make it clear whether that neighborhood is right for you.
“There’s a stereotype of master-planned communities as cookie-cutter, but it’s surprising to people who come from out of town that our communities are a good mix of what you get in Austin: people from all over the world coming to enjoy the entertainment, food, people and the beautiful vibe of Austin,” Rhodes says.
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5 Things to Know Before Buying a Home in an Austin Planned Community originally appeared on usnews.com
