PUD Real Estate

What is Planned Unit Development (PUD)?

A planned unit development (PUD) is a master-planned neighborhood with diverse property types, including single-family homes, townhouses, condos, and commercial spaces. It has amenities such as swimming pools, parks, tennis courts, and other open spaces.

In a PUD, homeowners own their properties but share common amenities with their homeowners’ associations. 

Unlike other housing developments, which are subject to standard zoning requirements, planned unit developments work with the local government to plan common and private areas and building guidelines, which a local planning commission must approve. 

Advantages of PUDs

Planned unit developments allow people access to a well-planned, well-regulated community with some unique perks:

• Community amenities: Homeowners have access to private amenities funded by HOA fees, such as playgrounds, green spaces, and pools. 
• Shared maintenance: Major repairs and upkeep of shared spaces are also paid for by the HOA. 
• Diverse housing options: Depending on your lifestyle and budget, you can find a condo, a single-family home, or a townhouse.
• Stable property value: Due to improved maintenance, property values in PUDs either increase or remain stable.

Disadvantages of PUDs

Although they are generally comfortable places to live, these master-panned communities have some drawbacks, too. Some homeowners consider them too restrictive. 

Common issues residents have with planned urban developments include:

• HOA dues: You have to pay fees and any special assessments levied by the HOA. In some areas, HOA membership fees take a significant bite of the monthly budget. 
• Restrictive rules and regulations: There are strict rules on things like pet ownership, parking, landscaping, and home exteriors.
• Potential governance issues: PUDs require an active approach with possible public hearings and discussions, which may lead to disputes. 

Types of PUDs

These master-planned communities can be residential, commercial, or mixed-use. However, they are often undertaken to revive blighted urban areas and, sometimes, fail to resolve the underlying issue. 

Residential PUDs

These urban areas consist of shared open space, recreational areas like fitness centers and walking trails, and a variety of housing options, including:

• Single-family homes
• Townhouses
• Condominiums
• Mixed-use developments

Commercial PUDs

Commercial planned unit developments focus on spaces like grocery stores, restaurants, retail stores, and office buildings. They can also include certain industrial buildings, allowing residents to create a self-sustaining community where they can work and live. 

Mixed-Use PUDs

A mixed-use planned unit development combines residential and commercial elements. Residents can work, live, shop, and find entertainment in the same space. However, these communities can feel isolated from the rest of the area, and they usually require the residents to own cars. 

Key Features and Amenities of PUDs

The presence of common areas, shared maintenance, and community governance defines these developments. They can foster a sense of community, attract new residents, and usually increase surrounding property values.

Common Areas and Amenities

A planned development may have amenities such as swimming pools, parks, clubhouses, and fitness centers. These amenities provide spaces for residents to gather and foster relationships within the community, making them especially appealing to families. 

Shared Maintenance and Services

A planned unit development removes some of the maintenance hassles that residents in other housing developments have to handle on their own. The association typically handles landscaping, snow removal, and exterior upkeep. On the downside, homeowners have to comply with pre-determined color schemes or limitations on what plants they can grow.

Community Governance

A PUD community is run by a homeowners association, which enforces rules and regulations for its residents. Homebuyers typically have little choice regarding HOA membership, as most associations are mandatory. Residents must follow strict regulations and pay monthly dues.

Buying a Home in a PUD

If you want to buy a home in a planned unit development, you need to carefully research the community’s conditions, your obligations as an HOA member, and your financing options. 

Working with a Real Estate Agent

Real estate agents understand the strengths and weaknesses of each community, so they can help you find the right neighborhood, depending on your lifestyle. Their knowledge can shorten your search and clarify the regulations, expenses, and expectations for each community. 

Reviewing CC&Rs

If you want to live in a PUD, you should get acquainted with its Covenants, Conditions, and Restrictions (CC&Rs). The HOA sets these conditions, and each property owner in the housing development becomes legally required to follow them once they purchase the property. 

Financing Options

Getting a mortgage for a planned unit development is slightly more difficult than getting a mortgage for another type of housing development. However, mortgage lenders usually have no issues with these areas as long as the HOA is well-organized and financially sound.

Homebuyers usually go for FHA or conventional loans to purchase these homes, with first-time buyers typically choosing an FHA loan.

Understanding Homeowners Association Fees

Before you purchase a home in a PUD, consider how the HOA manages its finances. Ask about its maintenance reserves, the percentage of homeowners who are delinquent on their dues, and whether the HOA is involved in any litigation.

The dues help the community maintain cleanliness, safety, appearance, and property values. They are calculated according to property size or value, and in some cases, they are shared evenly among all residents.

Property Owners Selling a Home in a PUD

Having a home in a PUD can affect your sale in several ways. You will need to prepare and stage your home in a certain way and disclose all HOA information to the buyer, who will inevitably become a member of the HOA. 

Preparing Your Home for Sale

When selling a PUD home, consider your ideal buyer based on the rules and amenities. For example, if the house is close to a good school, highlight all the amenities that make it attractive to families with children.

Before you market the home, ensure it’s repaired and well-maintained so you won’t have to spend too much energy on staging later.

Disclosing Information to Buyers

The seller must disclose all HOA-related information to the buyer, as the buyer will have legal obligations to the community as soon as they sign the closing agreement. This disclosure includes information about dues, amenities, and regulations and should also cover any disputes or the general state of the HOA.

Advantages of Selling to a Cash Home Buyer

Selling a home that belongs to a planned unit development can be more difficult, as many buyers find the rules restrictive or the fees too high. In other cases, any outstanding fee you have will prevent you from selling until you pay them back, and this is an issue if you need to sell fast to relocate or handle urgent financial matters. 

If you need to sell fast, finding a trustworthy cash buyer might be the right option for you. 

Quick and Hassle-Free Closing

Selling your home to a professional cash house buyer allows you to close the purchase in a matter of days or weeks. Cash buyers are real estate investors who don’t have to wait for mortgage approval, meaning you don’t have to wait months for an appraisal or loan approval.

No Financing Contingencies

When you sell to a cash buyer, you don’t have to worry about the buyer’s financing falling through. You receive the agreed-upon amount quickly and directly. 

As-Is Sale

Unlike traditional sales, you don’t have to stage, repair, or even clean your home when you sell it to A-List Properties. We buy houses as-is, meaning all you need to do is take the money and hand us the key. We will take care of everything else. 

Flexibility and Convenience

If you need to move for work or manage a difficult financial situation, we can accommodate your timeline. Tell us when you want to close, and we will do our best to organize the sale according to your needs. There are no agents or mortgage approvals involved, so you have more control, flexibility, and convenience. 

Take the Next Step with Your PUD Property

If you’re planning to sell your PUD property and want to avoid the hassle of a traditional sale, contact A-List Properties for a free quote. You are not obligated to continue with the sale. We are a family company run by veterans who are involved in the community, and we will do our best to help you achieve your home-selling goals. 

Call us at (972) 526-7042 or fill out our online form.