Hello and welcome to Reader’s Corner!

This is your place to share your comments, questions, experiences and even just humorous stories with other readers.  I welcome all your e-mails and read every one of them.  This edition I am devoting the Reader’s Corner to a comment from Mary from Illinois.  She bought into an active adult community in 2005.  While she has enjoyed the lifestyle it has offered, she had a problem with her porch which she very much enjoys sitting on.  It began crumbling shortly after she moved in when her first winter there hit.  It took an initial 8 months to get the builder to come in and do something and then they only did patchwork. After nearly a year and a half and three patchworks later, what she thought would be a new porch put in is a mesh of three different-colored patchworks and she thinks it looks terrible.  So, with that in mind, I feel compelled to remind you of things to look for when you buy a new home in one of these communities. 

1.  First and foremost, if you're purchasing in a new community, you'll want to check out the solvency and warranties of the builder.  Building projects typically always cost more than anticipated and may often take longer than expected to complete.  Make sure the builder has the financial to not only complete your home, but also to complete the build-out of the community including the promised amenities. If a builder were to go bankrupt it could potentially leave you and the rest of the community with the responsibility of seeing the development through to completion.  One way to check is to make sure the builder is bonded for completion.

As to the warranty, read it thoroughly including the small print.  It may be worth it to have an attorney who is experienced in warranty litigation to read it over.  That way if problems come up such as our readers, everyone knows what to expect.

2.    Another thing to consider when contemplating a purchase in a planned community is the Community Management Association and the monthly homeowner's assessment.  Typically, in a new, developing community the builder controls the Board of Directors of the Community Management Association (homeowner's association) until the last new home has been sold.  The builder may also subsidize the costs of running the Association during the development and build-out of the community, "propping up" or underwriting the costs of running the community and amenities during that period.  So, you need to see what will happen to those costs and benefits when the builder pulls out.

3.    When shopping for your new home, one thing that you may want to do is consider a resale!  The old "what you see is what you get" really rings true here . . .In some cases resale may be as good or better than brand new - the current owner often has already put in many upgrades.  Plus, you get the benefit of meeting your new neighbors and, well, need we say more?!

4.    Of course, whether you decide to purchase new or resale, I want to highly recommend that you get a home inspection.  The cost of a home inspection can be worth its weight in gold.  Discovering construction defects prior to taking title to the property will apprise you of the condition of major items such as: the heating and cooling systems, the interior and exterior plumbing, the structural integrity, electrical, roof, etcetera.  If problems are found, the seller is motivated to fix them prior to transfer of title and you taking ownership.

5.     Last but not least, is the old saying in real estate, "location, location, location!"  It's really true . . .  if the home you're considering is in a location backing up to commercial property or a busy street, the value will always be less than other similar homes which do not.  Even if you're purchasing a home which backs up to a golf course, consider where errant balls may land!  If you're mid-fairway they may land in your back yard; break your window; or worse - you may be the target of a stray ball!

Hope these tips are helpful.  Remember to write me at Dee@ActiveAdultLiving.com.  I look forward to hearing from you!