Saturday Reporter-Herald January 8, 2011 E1
Real Estate Matters
www.homeandrealtyguide.com • Saturday, January 8, 2011 • Reporter-Herald
Homeowner may have to help pay road expense ILYCE GLINK TRIBUNE MEDIA SERVICES
Q
uestion: I live in a 20-year-old, fully built subdivision that consists of six homes. We have never had a homeowners’ association but we do have a covenants, conditions and restrictions (CCR) document. Twenty years ago we modified the document to provide a road agreement between the owners. The road is private and we make the repairs to it. Over the years we all contributed our share of the repairs, and majority rule dictated what work was done. This spring we needed to repave the road and got estimates, and five out of the six homeowners voted to go with the lowest bid. The sixth homeowner refused to participate and wanted more information before any work was done. The dissenting homeowner is now refusing to pay the balance owed on the road. What legal recourse do we have to collect our funds from this homeowner? She is threatening to sue us if we put a lien on her house because the road was not completed to her liking. Answer: Just because you don’t have a homeowners’ association does not mean you don’t have rights. You need to go back to the CCR. That document should have all you need to figure out where to go from here. If the CCR was done right and the amendment everybody signed 20 years ago was done correctly, the document would provide for each owner to pay his or her share of expenses relating to the road. The CCR should also have provided for a mechanism to enforce the payment of any amount voted on by the owners. If the CCR allowed for a majority vote rule to get things done, the owner that refuses to pay may have a problem and the CCR may permit you to put a lien on that owner’s property for failing to pay the amount owed. But you need to make sure you read over the CCR and see what the document provides. If the document merely gave all the owners the right to use the road but there was no mention of repairs and who or how those repairs would be made or paid for, you may have a bigger problem. Without that language, you’ll only know what your state law provides in this special case by hiring an attorney to see where things stand. If all of the owners that bore the expense of the road repairs get together, you all can find an attorney to help you out. While you would hope that the dissenting owner would come up with the money, these hard economic times have put strains on everyone’s budget. Some refuse to pay for what they should, while others that can afford to pay will only pay if things are done their way. It’s hard to tell what this owner is thinking, and you’d hope that the five of you can work it out with her. If you’ve tried but have gotten nowhere, you might have to see what your legal rights are. Otherwise, the five of you will be sharing that neighbor’s cost of the road repairs.
Return on Investment
Realtors rated exterior projects such as garage door replacements and entry door replacements highest among cost returned upon home resale. Other improvements, including kitchen remodels and attic rooms, also rated highly in terms of money recouped.
Home remodeling: What helps boost home value most? JADE CODY SPECIAL SECTIONS EDITOR
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n a challenging real estate market, selling a home can be a trying endeavor. Many homeowners look to update their home with projects that will ultimately increase their resell value. “Look around at what’s in your neighborhood,” said Sarah Warnock, Broker Associate with Prudential Rocky Mountain, Realtors in Loveland. If the homes in your neighborhood all have fences or sprinkler systems, you have a better chance of selling if your house has those things, as well, she said. Warnock recommended improving a home’s curb appeal by tidying up landscaping and the exterior elements of the home. This will help foster good first impressions from prospective homebuyers, she said. Ron Phipps, National Association of Realtors President, said “Curb appeal remains king — it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership.” In a survey reported by The National Association of Realtors, exterior replacement projects were found to return the most money upon resale. The NAR release included statistics gathered from the 2010-11 Remodeling Cost vs. Value Report. Nine out of the top
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Adding an attic room was among the highest rated home improvements in terms of resale value.
10 projects rated by Realtors were exterior projects. “This year’s Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but also are among the least expensive improvements for a home,” Phipps said. According to NAR, steel entry door replacement was the top investment in home projects, returning an estimated 102.1 percent of the cost. This was the only project in the report that was projected to return more than the initial cost. Replacement projects normally return more return value than remodeling projects because of their lower cost. Overall, Realtors in the study estimated that homeowners would recoup an average of 60 percent of their investment in 35 different improvement projects, down from an average of 63.8 percent last year. Remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions. The top interior projects for resale value included an attic bedroom and a basement remodel. Both add living space without extending the footprint of the house. Warnock said that while pricey, Exterior improvements give a kitchen and bathroom remodels good first impression and show will increase a home’s resale valthe homeowner took pride in ue. But that’s not to say that less their property, making it more expensive updates don’t help, eipalatable to potential homether. buyers. “Small things can make a dif-
Nationally, minor kitchen remodels rated recouped a high percentage of money upon resale. ference as well,” she said. Something like replacing linoleum with low-cost tile can improve a home’s resale value. Phipps said “it’s important to remember that the resale value of a particular improvement pro-
ject depends on several factors. Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value.
“Curb appeal remains king — it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership.” — National Association of Realtors President Ron Phipps
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