Homeowners Associations in Gwinnett Area Get Greedy

Note to Gwinnett area homeowners associations......your greediness is hurting your neighborhoods! Recently I've seen some outrageous "initiation fees" and "move in fees" for buyers purchasing a home in a subdivision with mandatory HOAs. Some as much as $2500! 

I'm not sure if they are thinking long term but charging these fees are killing sales in their neighborhoods. It's obvious this is an attempt to recover fees not paid by defaulting homeowners and/or vacant homes. Even further, they also realize the banks that own these properties will pay these fees just to sell the property and get it off their books. Plain and simple, this is robbery and the big lenders are well aware of it.

First time homebuyers don't have an extra $2500 laying around! So when around 30% of the market are first time buyers, and you handcuff them with this outrageous fee, they are forced to move on to another property. This in turn, hurts sales in the neighborhood which obviously hurts your association.....and your current homeowners as well.

As I mentioned before, the big lenders are aware this is a problem. Freddie Mac has addressed this as recent as yesterday in an annual meeting with local listing agents and brokers according to my broker who attended this meeting. Among other issues, this is one that is costing the tax payers money.

In the case of Freddie Mac, they are run by the Federal Housing Finance Agency. A federal, yes federal agency.....which means tax money is somehow factored into what they do. I'm not an expert on this agency but I can tell you anytime you ask Freddie Mac to pay an HOA initiation fee, in the end this is coming out of YOUR POCKET! So the buyer has to ask the government to pay a fee that the HOA has dreamed up to make up for a shortfall and they pay it.....at least right now they pay it.

This is extortion folks! By these HOAs that know the banks and government run agencies will pay these fees to move the property. I wouldn't look for these agencies and companies to continue this too much longer. Hopefully they will implement a plan to prevent it but in the meantime, hire a strong negotiator/Realtor to work for you.

If you need a stong negotiator to help you purchase your next home, please contact me! I'd be happy to help!

www.SteveSellsGwinnett.com Steve Rider, CDPE Realtor with Keller Williams Lanier Partners in Braselton Georgia. Covering Barrow, Jackson, Gwinnett and Hall Counties in Northeast Georgia. If you're looking to purchase or sell a home in this area please contact me at 404 663 7063 or steverider1@gmail.com.