12 questions to ask before you buy a home in a 55+ community

Here are 12 essential questions to ask before you commit to purchasing a home in a 55+ community.

1. Will I own the home, or is this a lease community?

This may seem obvious, but when it comes to 55+ or retirement communities, various types of property can be available. You may wish to own your home for financial reasons, or you may wish to lease a unit to maximize your flexibility in retirement. Some communities offer both; others may allow you to own and lease out your property. You’ll want to be sure to check community rules (see #3 on this list) before renting your property out if that is part of your retirement plan (for instance, if you’re out of state for part of the year). Not all communities permit renting residents.

2. What is included in your monthly payment?

Identifying all the costs of living in the community is important, not just rent or mortgage payments. You will want to consider whether various things are included with your monthly property expenses; a few to consider are:

• Landscaping and pool maintenance
• HOA fees
• Community class fees
• Admission to community features like restaurants, classes, clubs, or spas located on the grounds
• Shuttle service to amenities nearby

Be sure to get the most for your dollar, but also that you aren’t paying for amenities that will go unused.

3. What are the community rules?

Most active adult communities have a set of rules that residents must follow. These might include:

• Visitor restrictions (age, number, and duration of stay for children, grandchildren)
• Pets (limits on how many, allowable breeds and sizes)
• Parking (number of vehicles and where they can be parked; consideration for RVs, boats)
• Exterior paint colors
• Dress codes in public areas
• Lawn/landscaping maintenance enforcement
• Renting (limitations or restrictions)
• Renovation/improvement restrictions
• Noise (daytime and nighttime decibel allowances)

4. What are your new neighbors like?

Good neighbors play a considerable role in your quality of life, especially when you retire. Learn about what life is like in the neighborhood. If possible, attend some community events and get to know some of the residents in your prospective neighborhood. Many communities offer “discovery” events, including overnight guided tours of various home options and neighborhood amenities.

Many 55+ communities offer social events like book clubs, art classes, fitness activities, cookoffs, and more to connect residents. You may be looking for a community of like-minded people with shared interests or seeking exposure to diversity where you live. No matter what you’re looking for, knowing what’s in store socially will factor into your decision-making process. For example, some communities value quiet and calm, while others offer a more lively pace.

5. What plans are there for the adjacent property?

This is a crucial question for newly-constructed 55+ communities. Knowing what you can expect to find nearby can be increasingly important as your age advances (and potentially your mobility declines). Know whether properties adjacent to your own are planned for further residential development or if there are other things in store. If you plan to stay at this property indefinitely, you’ll want to know whether that vacant lot nearby is fated to become an elementary school or a regional airport. Such developments could have a long-term impact on your property’s appeal and value.

6. What type of assessments have been made?

Assessments can be expected for any community development, but for seniors living on a fixed income, being able to predict your property taxes may be crucial to balancing the rest of your budget each month. Even once your mortgage payment is a thing of the past, property tax bills will continue — and you’ll want to know what to expect. In addition, property taxes vary depending on where you are looking to buy, so be mindful of the cost and whether it has a history of fluctuating.

7. Is the community financially sound?

You will want to know if the developer and association are on solid financial ground before you commit to purchasing or leasing a home. These parties are often responsible for community maintenance and amenities, so you will want to ensure their solvency as much as you want to ensure your home is the right fit. In short: do your homework! Don’t be afraid to ask for detailed information about board governance or community financials.

8. Is the community able to keep up with future growth?

Is there sufficient infrastructure, wise planning, and expandable space to grow as needed? What if the interests of the community shift over time? If the community has been established for years, are there long-range plans to repair and replace key infrastructural components like water lines and local streets? These responsibilities may fall within the purview of your village or community rather than in the city where you reside. Be sure you know who is responsible for these decisions and their costs.

9. Is there a reserve fund for maintenance?

Also sometimes known as a sinking fund, this is a financial safety net for significant unexpected future expenses incurred at the community level (for instance, re-roofing the community center). Know whether there is a reserve fund set aside for large community maintenance projects like replacing pool furniture after a storm or facilitating an air conditioning replacement at the clubhouse. While some communities maintain funds for these expenses and address them as needed for residents, others may expect you to actively raise funds as an HOA member. Either way, how large upkeep expenses are handled may impact your decision to buy in a particular development.

10. What other projects belong to this developer?

Research the builder of your home and the larger community, and ask for references. How long has the company been in business, and have they successfully invested in similar communities in other cities or states? A company or investment group with the proven ability to drive property values upward will likely do the same for your new neighborhood. On the other hand, if the company has allowed its previous investments to decline, you may need extra reassurance that history won’t repeat itself — or you may wish to seek property elsewhere.

11. Is the governing association easy to work with?

You will want a community board with a proven track record of working together and finding solutions. If you discover a dysfunctional board led by power-hungry or inept individuals, it may cause great angst and harm the unity of the entire community. Ask several different residents; check with your real estate agent. Find out if the board and its members are competent, effective, and civil. One free resource to research your association or HOA is communityassociations.net.

12. What lifestyles are accommodated?

You will want to consider whether you’d prefer an active community of younger senior residents or a community where you can age into services like assisted living or memory/hospice care if needed. Do you want a single-family home, or are you looking to purchase a unit within a larger building? Is handicap accessibility vital to you or a family member? Do you need a community that is fully navigable on foot or by golf cart?