Mortgage Forum Live

Real Estate Values Fall As Home Owner Associations Avoid Insurance Liabilities

By December 21, 2008

Property Values fall as trees and playgrounds are removed. If they focus on counting the money, they may never realize where the losses are.

The home owner and condominium associations are removing the essential components of their common areas. Playgrounds and trees are being removed at an alarming rate. Does it seem justified that playgrounds are being replaced with dog runs? They often don’t take into consideration that the park-like scene has a direct added value to a property.

In an effort to reduce potential liabilities common ownership communities are looking for potential hazards, which may cause their insurance rates to rise Every paid claim puts more pressure on the community to reduce potential hazards. Parents and citizens often make insurance claims when someone gets hurt on the playground or by a falling tree.

Removal of common elements often have devastating effects on the culture of the community. A park-like scene is quickly turned into mere concrete, dirt and possibly a dog run. Parents typically gather at the playgrounds and socialize while their children play. This allowes the parents an opportunity to get to know one another while the children would have the essential opportunity to be kids.

With the loss of shade and playgrounds the families are forced to spend more time inside. This has a direct negative effect on the sense of community, the social skill and health of our youth.

The effect on global warming should be considered. There is a reduction of shade; increased utility bills; and it often becomes more expensive to the association and unit owner, than the increased insurance rates they would have paid.

Home owners, unit owners, condo owners must make a request to their association board to make a change in their bylaws, stating that common elements will not be modified without a vote by the property owners. If they don’t take the initiative to do this, they may come home one day and find that there land is raped of many mature trees and playgrounds.

This is happening and this happened to me. I owned a condominium in Montgomery County Maryland. I found numerous mature trees removed from my community, when I returned from vacation. There was now a hot, sundrenched playground, where there was once shade. www.BuyAndSellExpert.com promotes healthy communities.

The board members had the trees removed. They said that the tree company had made recommendations as to which trees were to be taken down. I asked why they did not get an independent party to make the recommendations. They had no response. I asked why it was recommended that those trees were removed and they said that they would provide me with a report. That was six months ago. I have yet to receive the report and don’t expect one.

I sold the property as quickly as I could. I was subjected to a board that had terrible decision making abilities. After the tree removal they told me that they were planning on taking out the playground. I stopped them from removing the playground equipment. No one on the board had young children. They did not understand the value of a playground.

Advocate for your community.Now I am a commissioner on the Commission on Common Ownership Communities. I am striving to make chages so that everyone may benefit. Learn what you can do to help your community. Provide helpful advice to others: http://www.buyandsellexpert.com/real-estate/comission-on-common-ownership-communities.html . You can make an impact if you will take the time to get involved.Take Action Now

The net result is that the properties become less attractive to potential home buyers, who are also property investors, the value of the properties decline.

Carolyn Thompson is the owner of Intellagent Realty Services LLC and a community advocate. More Information

- Carolyn Thompson

read user's comments (0)