 The purchase of a home represents the largest investment most people will ever make during their lives. Protecting and enhancing the property values of these homes is one of the primary purposes of a community association – and a key driver of Associa's service menu and programs.
The determination of property values, however, is not an exact science. Property values are often determined by the marketability of the home and its surrounding community.
Communities develop reputations. Some are well maintained and look great. They are valued by their residents for providing vital and efficient services. Their residents are happy, and enjoy where they live. As a result, these communities often achieve greater appreciation in property values than others. And the reason can usually be attributed to good management.
So what is the value of good management...and likewise the cost of poor management? Let’s create an example: If a community has 100 homes, and each home has an average market value of $350,000, then the total collective property value of the community would be $35 million (100 homes x $350,000). If, as a result of being well managed and maintained, the property values within that community rose 5% instead of 4% per year, then the collective incremental increase in property values achieved through good management would equate to an astounding $350,000 ($35 million x 1%)!
The value of good management in this example would result in an additional $350,000 for the community – or $3,500 per home per year.
Conversely, if the community was not maintained or managed as well, the collective cost of poor management would equate to the same $350,000. Ironically, some communities consciously choose to reduce the quality of their services, diminish the appearance of their buildings or grounds, or select a cheaper management company in the belief that they will save a few dollars.
Unfortunately, a savings of five or even ten thousand dollars in management fees or services, in this example, would have instead resulted in the loss of $350,000.
Take a look at your own community and perform the same calculations to roughly determine your association value. Is your community making the same mistake – penny wise and pound foolish?
In addition to the day-to-day care that Associa provides to each of the communities we manage, we also look at the big picture. We create our services and educate our professionals not only to serve our residences with individual attention and integrity, but also to protect the value of the homes we oversee.
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11000 Corporate Centre Drive
Suite 150
Houston, TX 77041
Tel: 713-329-7100
Fax: 713-329-7198
25301 Borough Park Drive
Suite 108
The Woodlands, TX 77380
Tel: 281-367-8137
Fax: 281-364-7740
Toll-Free: 800-753-6123
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