Way back on September 19, 2007 (nearly a month ago now) SB 1062 went into effect. This act changes the limitations HOA’s may hold on homeowners and the placement of real estate for sale signs on their properties. SB 1062 now allows the placement of one for sale sign on your property, even if the HOA previously did not allow the placement of such signs.
I personally live in one of those HOA’s in north Scottsdale. It hasn’t ever bothered me, because it is a guard gated community, and thus we aren’t likely to have drive by traffic checking out the neighborhood. Some type of “just listed” marketing is typically used to let the neighborhood know that something is up for sale. And then, we all know the neighbors to talk to at the local Starbucks to get the skinny on every single one of our neighbors, what they are thinking, where they are moving, etc. Word travels fast enough, even without a for sale sign in the yard.
That said, a sign wouldn’t bother me either. In a subdivision like mine, I don’t think it would sell the property, but I also don’t think it hurts the neighborhood in any way. If the property was for sale by owner (FSBO), which is the primary reason this act was put in place, the sign may be the only effective marketing tool the homeowner has to sell the property. If nothing else, it alerts the local REALTORs that there’s a home for sale that isn’t in MLS. And a FSBO listing does have the right to have every advantage possible.
The new sign law allows for an industry standard sized sign along with one rider to be placed on the owner’s property advertising the home is for sale. The law does not allow a for rent sign. The law also doesn’t allow more than one rider (this I’m happy to see, as I’m not a big fan of riders anyway, especially when 4 or 5 of them are hanging down to the ground). As well, the new law does not affect limitations for open house signage. If the HOA previously did not allow for directional open house signs to be placed in common areas, those limitations are still in affect.
Understandably, some HOA’s are going to be slow in acknowledging this change. The association I live in just mailed out a letter to the homeowners this week. I’ve known about the change since the day it went in force, but was curious how long it would take for my own HOA to react. Since the president of my HOA is a REALTOR, I figured they’d be reasonably quick. Acting within a month, is moving pretty fast for an HOA. There aren’t any for sale signs up yet, however. Perhaps they will come. Perhaps they won’t. Just because signs are allowed doesn’t mean you should have a sign.
If you live in a community that previously did not allow signs, but haven’t received any prior notification about the change, and you are thinking about putting up a for sale sign, I would encourage you to have your agent contact the HOA before installing the sign, just to be sure everyone is on the same page. There’s no sense in putting up a sign, and having the HOA take it down, because they aren’t aware of the law. This would be doubly so, if you are listing your home for sale by owner.
As a reminder, I’m available nights, weekends, and holidays to place this sign in your yard: