Bridging the Gap with Real Estate Agents

During my more than 20 years managing and consulting with homeowners associations, I’ve been able to identify gaps in the relationships between boards, current and future homeowners, and management companies. We all have a role to play, but one major player is missing from the equation: real estate agents. Where do they fit?

Ask any real estate agent what their first thought is when they hear “homeowners association,” and note their reaction. Is it a grimace? Do they roll their eyes? What is a community manager’s reaction when an agent calls with questions about an association? Be honest. We often let it go to voicemail.

A lack of education and collaboration among agents, homeowners, and community associations can have devastating effects.

Recently, several members of the Maryland Legislative Action Committee met with constituents from one of the first associations established in Baltimore County. Built in 1978 and comprising 222 townhomes, its board was proud it hadn’t raised assessments in many years. After Maryland enacted laws that required communities to obtain and fund reserve studies, homeowners were shocked to discover the community had shared expenses that went unfunded for years. Few, if any, of the owners who bought in the community over the past few decades read or understood the resale packet. If they had, they would have learned that the community was responsible for its stormwater infrastructure.

To comply with the new laws and fulfill their funding obligations, the community would have to raise assessments considerably. As a result, people were going to lose their homes.

These types of situations are avoidable if we all work together. My sister is a real estate agent. Together, we created a training program to bring stakeholders together and teach agents about our side of the transaction and how to consider the homebuyer as our mutual client.

In January, I launched “Embracing the Value of Association Living” as a continuing education course for Maryland’s Associations of Realtors. In addition to presenting information on associations and how to understand what a resale package means, the class includes information on federal and state legislative initiatives that impact real estate agents, boards, and community managers. It is designed to give real estate agents practical approaches to address seller and buyer questions and avoid conflict. The goal is for everyone to embrace the value of association living.

Affordable housing statistics, reserve studies, and homeowner grants are shared concerns.

Explaining CAI’s positions on these important issues demonstrates to real estate agents that we have common interests. I believe three Cs sum up peaceful association living:

Communication. Jargon and buzzwords can be a barrier in the association-agent relationship. When we learn to ask the right questions and how to ask them, we can speak the same language. Real estate agents can create checklists for potential homebuyers. Simple questions and observations can help you learn whether a community is right for the buyer and set expectations before settlement.

Cooperation. Community managers and boards can develop simple lists to explain community governing documents. Agents and potential buyers must understand these documents to prevent a lack of cooperation and noncompliance down the road.

Consensus. Association living is rooted in collaboration. A successful partnership begins with real estate agents. Knowing what questions to ask homebuyers and knowing how to work with associations gives potential buyers a positive experience.

Let’s change the negative reaction some real estate agents have to homeowners associations. I urge managers to take the time to answer questions and build relationships with agents. A healthy relationship between boards, managers, and real estate agents eliminates many threats to neighborhood harmony and preserves property values.