Special offer
LaShonda Solomon, Serving Cobb, Paulding, Douglas, Bartow Counties (Atlanta Communities Real Estate Brokerage)

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Rainmaker
1,502,858
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Short answer: No.

Long answer: I've never heard of an HOA having that level of authority.  Personally, I believe it is a member wanting to keep prices high so that their home's value maintains or rises.  Best to check the CC&Rs (or ask them to show you where the HOA gets that authority or ask to see their real estate license).

Oct 19, 2017 10:05 PM
Rainer
140,560
Richard L. McKinney P.A.
Atlantic Shores Realty Expertise - Port St Lucie, FL
For Results that MOVE you on the Treasure Coast!

I hear this all the time here in South Florida. We have started warning sellers in HOA's or Condos that both neighbors and even board members will try to push their opinion on them and encourage sellers to raise their asking price. 

I have instructed the seller to say the following in those circumstances "If you think my place is such a good deal, why don't you call my agent and buy it?"

This usually shuts them up really fast.

Oct 20, 2017 04:48 AM
Rainmaker
1,543,225
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Ask the HOA president to buy it.

No, the market sets the price the seller selects; the lien holder approves the price.

 

Oct 20, 2017 05:23 AM
Ambassador
6,392,899
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Lots of people offer opinions of things of which they are not qualified to comment on.  Tell your client to ignore this person.

 

Oct 19, 2017 11:15 PM
Ambassador
2,435,649
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

In a co-op community, there could be a possibility the board does have that power depending on the governing rules. I lived in one that had right of first refusal and if they chose to sell a place themselves could decide how it was priced.

However, in your example, with an HOA for a condo community, I say "no." I bet that HOA president wants to sell her/his place soon and wants to keep the prices up!

 

Oct 20, 2017 02:52 AM
Rainmaker
3,626,530
James Dray
Fathom Realty - Bentonville, AR

Short answer NO

Long answer NO.

 

Oct 20, 2017 02:33 AM
Rainmaker
1,052,056
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

The HOA president is not a real estate professional, and even if they are, they're not the real estate professional representing the seller. They need to keep their little fat nose out of the sellers business. This is not their call.

Oct 20, 2017 06:30 AM
Rainmaker
757,885
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

If the HOA has a lien on the property my only concern would be securing the payment of their lien from the approved expenses. Their opinion of price is irrelevant as far as I am concerned. The owner still owns the house- you set the price & the bank appraisal has to jive. 

Oct 20, 2017 03:08 AM
Rainmaker
1,197,022
Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

No, check the con do docs to see if there are any specific words regarding g the sale of properties there.

Oct 20, 2017 01:16 AM
Ambassador
5,229,296
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

They can say what they want but, ultimately, the pricing is not their call (unless it's a co-op).

They're probably just concerned about the values being brought down. However, an appraised valuation should not include distressed properties for future sales.

Oct 20, 2017 05:28 AM
Rainmaker
4,882,349
Richard Weeks
Dallas, TX
REALTOR®, Broker

I would ask the HOA president if Amazon stock price is too low.  The market dictates price.

Oct 20, 2017 05:01 AM
Ambassador
3,344,906
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Absolutely Not.  The lender/bank dictates the price. They won't accept an offer that is not in alignment with what they believe the home is worth. 

Oct 20, 2017 08:57 AM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

wow...that's a new one....the condo owner dictates... or should dictate!!!

Oct 20, 2017 06:55 AM
Rainer
55,673
Joe D'Agostino
NMLS# 729950 - Manahawkin, NJ
Mortgage Officer 46 years!

I live in a HOA community. My wife is a Realtor and I am a Mortgage Banker. Never, ever have I seen an HOA dictate the value of a property. They are not the experts......you are. Unless it's in the by-laws (which I doubt) then ask the HOA President, how many homes has he sold this year? It always amazes me when I get borrowers telling me that the "Neighbor" told him what interest rate he should get.

Oct 20, 2017 06:54 AM
Rainmaker
637,434
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Since it is a short sale, would that higher price take it out of the short sale range? I've done that in the past. Sometimes sucessfully. Dealing with the bank makes the sale so much tougher and usually takes longer.

Oct 20, 2017 05:17 AM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

No - unless it's written in the HOA rules - which I have never seen...yet

Oct 20, 2017 05:03 AM
Rainmaker
1,574,666
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Unless the association is the mortgage holder they should have no impact on anything...

Oct 21, 2017 08:19 AM
Rainmaker
599,274
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

Not at all. They are simply trying to protect the interests of the other owners.

Oct 21, 2017 05:40 AM
Rainmaker
711,752
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

No. However, it could be the HOA is trying to push for a higher price to keep the comps up in the community. But you are the real estate professional and should be the person who lets the seller know what the property should sell for.

Oct 20, 2017 09:41 AM
Rainmaker
7,835,266
Roy Kelley
Retired - Gaithersburg, MD

A HOA officer can provide whatever advice he or she wishes to provide. However, they can not usually control the market.

Oct 20, 2017 08:39 AM
Rainer
374,987
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA

It always amazes me what residents think an HOA board has authority over and sometimes, it is amazing what HOA boards think they have authority over in the neighborhood. 

I love Richard L. McKinney P.A.'s response.

Oct 20, 2017 08:11 AM
Ambassador
5,048,718
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I don't see how the HOA can unless there is something in the CC&Rs that allows it. Probably more concerned about potential impact of values but ultlimately it's the market that will decide, and what the lender is willing to accept.

Oct 20, 2017 07:49 AM
Rainmaker
2,781,013
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Every person I run into dictates price opinion. Real Estate does that in people

Oct 20, 2017 06:57 AM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

LaShonda,

I agree with Ryan Huggins - Thousand Oaks, CA .  A

Oct 20, 2017 06:52 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

They shouldn't.

Oct 20, 2017 06:35 AM
Rainmaker
716,049
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

Unlikely - so NO. Did you ask the HOA President if he/she was commenting under his/her official capacity, or as a personal comment?

Oct 20, 2017 06:22 AM
Rainmaker
900,008
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Anybody can chirp in, but the market decides.

Oct 20, 2017 05:39 AM
Rainmaker
815,153
Paul Antonelli
Antonelli Realty - Saint Cloud, FL
Broker Owner; Antonelli Realty

Not at all. They are probably concerned that if it sells that low it will drop the values of all the rest. In a short sale the Bank will let you know what price they will accept. I hope your client understands that anything waived is now taxable. 

Oct 20, 2017 05:38 AM
Rainmaker
2,220,323
Anthony Acosta - ALLATLANTAcondos.com
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Absolutely not.

Oct 20, 2017 05:32 AM
Rainmaker
5,215,798
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

He who owns sits on the throne, not a condo commando!

Oct 20, 2017 05:09 AM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

No the HOA can not dictate price, but it could be a prediction that the bank will think it is too low and not agree to a short sale on this property

Oct 20, 2017 04:59 AM
Rainmaker
1,844,171
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

No, tell the president to mind his own business as your job is to sell the property not please him. I can see his concern, as the lower price effects all in the community.

Oct 20, 2017 04:48 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I don't think so. 

Oct 20, 2017 04:05 AM
Rainmaker
544,014
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Please see my response in blog post (that your question inspired this morning!):

http://activerain.com/blogsview/5126169/when-hoa-directors-complain-that-a-short-sale-is-priced-too-low

Fewer buyers will be interested in the property because of the uncertainty of how long they have to wait to get a short sale approval, or counteroffer, or total denial. Buyers are especially wary of short sales in an appreciating market where a 3 to 6 month wait for a failed short sale offer may result in the buyer having to pay many thousands more for a comparable property when he/she reenters the market.

Fewer buyers mean less demand. Less demand means lower price. The short sale lenders understand this, therefore they let the house go at somewhat of a discount.

Therefore, the condo is indeed worth less than market value by virtue of its short sale status, regardless of its intrinsic value if it were not a distressed property.

If somehow the HOA has the right to impose a price that the market will not pay, the condo will eventually go to the foreclosure sale. This could cause them to have an abandoned condo in their midst with diminishing value due to neglect, deferred maintenance and sometimes even vindictive damage to the condo purposely lower the value as a way to get back at the HOA directors who blocked the owner's ability to avoid foreclosure via a short sale.

HOA directors generally have very little knowledge of how a real estate market works. The market will do what the market will do, however, the lesson will remain unlearned by the HOA directors.  

Oct 20, 2017 03:55 AM
Rainmaker
2,182,502
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

No they are just fearfulthey will have toaccept a lot less

Oct 20, 2017 02:50 AM
Rainer
213,263
Dennis Swartz
Full Circle Property Management - Columbus, OH
MBA, GRI...experience counts!

NO but one of their duties is to preserve and promote housing prices in a community as condo comps are more powerful than house comps since they are more exact matches.

Oct 20, 2017 02:34 AM
Rainmaker
634,482
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

No. Any neighbor might say the same thing. You are more likely to know the real market value than the owners of similar properties. 

Oct 20, 2017 01:00 AM
Rainmaker
1,090,637
Diana Zaccaro Broker Associate
ZOOM Realty Group - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

No but they wish they could. That president obviously does not understand the concept of fair market value or that sales price is based on facts, not opinion. He should keep his SWAG to himself. I feel sorry for  your homeowner having to put up with this guy.

 

Oct 21, 2017 09:19 PM
Rainer
231,948
Eva B. Liland Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service 661-714-1643

No, never heard that one before. What I know is that agents sometimes list them low to attract attention and they sell for more due to the low listing price. Lenders will object however if the selling price is too low.

Oct 21, 2017 06:56 AM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

No and my question would be is the HOA President a licensed real estate agent or appraiser? In my state to practice real estate and give evaluations you need a license. I bet that would get the President to butt out.

Oct 20, 2017 07:15 PM
Ambassador
2,684,009
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  Dear HOA President:

            MYOB

Oct 20, 2017 04:18 PM
Rainmaker
1,725,896
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

As Sir Ryan Huggins - Thousand Oaks, CA scribed

Oct 20, 2017 02:08 PM
Rainmaker
643,875
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

Client should direct all questions to you as the Listing Agent.

Hard to say the motive...

Could be trying to maintain values/comps.

Could be trying to steer to another agent.

Could be they just need to keep their eyes on their own paper and opinions to themselves.

 

Oct 20, 2017 12:54 PM
Rainmaker
989,652
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

No, however the HOA can foreclose on the listing if there are back fees due so be careful

Oct 20, 2017 10:33 AM
Rainmaker
4,571,731
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

I love it when "neighbors" think a price is too low...let the overbidding begin. As far as the HOA and dictating list prices(who knows the actual sales price yet, right?) I'd ask to see where that is a part of the rules/regulations and/or CC&Rs.

Good luck with your new listing.  

Oct 20, 2017 09:34 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

The HOA president does not know how short sales work.

The bank will determine the selling price. The list price is simply to catch a few fish.

And, NO, the only situation I experienced price control is with Co-ops.

Oct 20, 2017 08:18 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

LaShonda Solomon I would say no, but read the Conto Docs. There may be a clause in there that properties have to sell at market value. Odd, but you never know.

Oct 20, 2017 07:10 AM
Rainmaker
249,105
Denise Copeland
Home Sales Palm Beach - Jupiter, FL
Jupiter Abacoa Sales & Beach Front Luxury Homes

Absolutely not. The bank dictates what price they will accept in the short sale negotiation. As a realtor, you  would want to price it low in order to submit the short sale package and offer to the bank. Then the bank will reject or upon acceptance they will order a BPO. Condo commando's are often looking out for themselves, and worried that a low sale will devalue other homes. 

Nov 03, 2017 11:42 PM
Rainer
177,546
Cheryl Dukes . . . . . Intown Atlanta
Guaranteed Offer for your Home - eXp realty - Atlanta, GA

Of course the price is too low. That's why it's called a "short sale".

Oct 28, 2017 08:53 PM
Rainmaker
1,622,432
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I never had any issues about the price with HOA. They can advice but I doubt they can interfere, so just do what you need to do. Listing price and final ''sold'' price is not the same. 

Oct 25, 2017 01:24 PM
Ambassador
3,164,119
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Honestly it has to be a value that the bank will accept with an appraisal in hand, but the HOA, nah, they have no control.

Oct 23, 2017 07:36 PM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

No.

Oct 20, 2017 04:58 AM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

I do not think so.

Jun 22, 2018 11:11 PM
Rainmaker
5,868,372
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

That sure sounds like they are putting their nose into something they should stay out of !!!

Oct 24, 2017 05:23 AM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

NO!, unless it isstated in the HOA constitution

Oct 20, 2017 08:17 PM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

No.

Oct 20, 2017 03:58 PM
Rainmaker
1,239,801
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

nop. But you may not the the lender to approve as BPO value(market value) is what the lender uses in almost all cases.

Oct 19, 2017 11:46 PM