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Is there a real risk in buying in a community that is not completely built out yet? Would 80-90% built out not be an issue?
Do the builder's retain "ownership" of the HOA and keep the HOA fees artifically low, then when they've sold all the properties and turn it over to the community, do the HOA fees tend to rise drastically?
Is it particularly difficult to compete against new construction if you decide to sell?
We're looking at some communities in and around the Leland NC area; some communities are just about built out and some are in the early stages of construction.
We bought in an unfinished neighborhood this year. Do I worry about it? Well, I think about if it never gets finished, but I don't dwell on it. As far as the HOA, the developer has a profressional group that controls it until the building is finished and turned over to the residents. I'm not sure about the HOA fees increasing.
Is there a real risk in buying in a community that is not completely built out yet? Would 80-90% built out not be an issue?
Do the builder's retain "ownership" of the HOA and keep the HOA fees artifically low, then when they've sold all the properties and turn it over to the community, do the HOA fees tend to rise drastically?
Is it particularly difficult to compete against new construction if you decide to sell?
We're looking at some communities in and around the Leland NC area; some communities are just about built out and some are in the early stages of construction.
Yes, there is a real risk. Builder's HOA "ownership," that's a question for the particular builder only. Is there an escalation clause in your deed? (ask if there will be prior to signing a buy-sell agreement or aka "offer").
My history is it is difficult to sell against the builder.
Thank you all. I didn't know about the "escalation clause", but we'll certainly check into it. We're in the pre-buying stage, going to NC the end of September to see if we think it's an area we'd like to live in.
Again, thank you. I think we'll probably steer clear of the newer communties.
You are taking a big risk buying in Leland, NC in general, as the housing and job markets here in SE NC are terrible. If you can afford it and won't have to sell for several years, an 80-90% built subdivision would be better than a subdivision just getting started.
Are you talking about Magnolia Greens? That neighborhood is very upscale and established - i.e. much lower risk than some of the newer neighborhoods. Most locals can't afford a house in that kind of neighborhood since local wages just don't support it. The average wage in Wilmington is only $36K (Leland is lower than that). So if you ever have to sell you would need to target northern transplants.
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