How a Strong HOA Reserve Fund Affects Home Prices!
Reserve contributions are often relegated to “what’s left” status in the budget process, regularly characterized by Board members and homeowners, as a problem for future owners. We’ve been challenging this way of thinking for over 30 years, and finally, there’s proof that we hope will change the way HOA Reserve Funds are perceived – redefining them from a resented expense to a wise investment.
The Numbers Don’t Lie
Home values were 12.6% higher in associations with a strong (over 70% Funded) Reserve Fund than homes in associations with a weak (under 30% Funded) HOA Reserve Fund. Since the average sale price of a condominium unit in this geographic area was just over $350,000, this meant that units in associations with a strong Reserve Fund sold for $44,000 more than units in associations with a weak Reserve Fund. Click here to read the full story.