Expert: Jessica Bryan - 1/22/2009

Question
I live in a subdivision of 312 homes.  There are 22 homes that back to major streets.  Our HOA is saying that putting up a nice concrete panel fence on the back of these 22 homes will increase the value of our house.  We live well into the interior of the subdivision.  The cost of this fence with interest and maintenance will be $8000 over the 20 year plan for every homeowner in the subdivision.  There is no provision for the people getting the fence paying more.  Everyone pays the same.  There are two runs of fencing for these 22 homes.  The average price of the homes in our subdivision is now approx $225,000.  The fence of choice in our subdivision is 6' tall cedar picket fencing.  The current covenants require that each homeowner keep up their fencing.  I do not feel that we would gain any significant value for our homes.  We paid about $20.00 per linear foot for a new 6" wide cedar picket fence.  It is 6' tall also.  The cost of the new fence is over $400.00 per linear foot.  Would you be able to offer an opinion of the value of increase for our subdivision?

Answer
Dear Paul;
Unless the subdivision is defined with an entrance and/or gate, the fence provides very little value to you.  Those with the fence in their backyard do get an increased value of course, but those who receive this value should be paying for it.  This is not a cost that should be passed on to you.  (Of course,as I said this could change if the neighborhood becomes a gated community by nature of the wall surrounding it.  Then all properties receive the value of the wall.)

Since a charge of more than a certain percentage requires a vote of all of the homeowners with a higher quorum and a percentage of positive votes to pass such an assessment, you should consult a local real estate professional to get facts and statistics on property values.  Do your homework and then present your arguments at a homeowner association meeting before the vote.

Good luck and best wishes,
Jessica Bryan