If you are planning to invest in residential or commercial real estate projects and want to know about planned unit development to make the final decision, you have landed on the right page, as we’ll discuss everything about PUDs in this article. Planned Unit Development (PUDs) has gained popularity in the last couple of years, and there are multiple reasons to support it. PUDs offer many amenities that boost community living, such as proximity to schools and workplaces and many more to discuss.
The success of your real estate development hinges on assembling a team of experienced and reliable professionals. From architects and engineers to contractors and legal advisors, each expert plays a crucial role in ensuring a smooth and successful project. Thoroughly vet potential team members, checking their credentials, experience, and references.
In addition, clear communication and collaboration among all parties are essential to avoid construction project disputes and operational lapses. So, prioritize professionals who excel in their respective fields and demonstrate a commitment to open communication and effective collaboration. This way, you can have a team that values transparency and open dialogue, ensuring a smoother path to project completion.
What is a Planned Unit Development in Real Estate?
Planned unit development (PUDs) is a group of small communities consisting of single-family homes, condos, or townhouses where all the homeowners are part of the homeowners association, which is run by a board of directors consisting of individual members from the community.
PUDs are thoughtfully planned and well-designed to provide convenience of shopping and recreational places, and proximity to schools to the residents.
PUDs give more flexibility and freedom to the developers in using the land because they don’t have to adhere to local rural, industrial, and commercial zoning regulations.
Key Features of PUDs
- Homeowners get access to homeowners associations that maintain public amenities.
- All homeowners need to adhere to rules and regulations laid down by the HOA regarding the look of the house and maintenance.
- All PUDs are run by the Homeowners Association (HOA), for which a fee is charged by the HOA.
- PUD is designed by developers with a mix of office buildings, schools, housing, shopping, recreational activities, religious institutions, and storage spaces.
- PUDs are free from local zoning regulations, but they have to adhere to legal agreement between the developer and the local authority.
- Developers have to maintain high standards of public health and safety, permissible land use, density limit in the area, and design quality.
Types of PUDs
Residential
Residential PUDs are meant for housing developments such as houses for single-family, townhouses, apartments, and condominiums. It also includes facilities such as parks, playgrounds, and community centers.
Mixed
The idea of mixed PUD is to offer an environment where residents can freely live and enjoy. Mixed PUD is a combination of residential and commercial space.
Master Planned
These PUDs cover between 2500 acres- 10000 acres of land with 100- 50000 homes in the community.
Pros and Cons of Living in PUDs
Pros
- PUDs provide more facilities, such as restaurants and grocery shops. They also offer walking paths, wider roads, swimming pools, parks, and cycling paths for the residents.
- Homeowners own the land and the building and have more freedom.
- Maintenance costs are lower than in other communities.
- Close proximity to essential services saves travel time and expenses.
- PUDs take care of the maintenance of the common areas. They take care of the landscaping work, snow removal, and even the front yard and backyard, which are not included in the maintenance.
- Staying in PUDs is a hassle-free and enjoyable experience, unlike living in other communities.
Cons
- All the residents have to pay a fee to join the HOA.
- There are certain restrictions on the way the home should look, landscaping, pets, use of public space, and quiet hours. You may have to follow the guidelines and even park your vehicle at the designated place.
- Homes are closer to each other than the traditional HOAs.
- Compared to other communities, the sale and purchase of homes could be difficult.
- Despite you being the owner, you have to abide by the rules and regulations and act accordingly.
Things That Affect the Selling and Buying of PUDs
The Long-Term Value of the Home
PUDs are well maintained and offer immense facilities such as schools, offices, grocery shops, and parks that invoke a sense of community living. These factors ensure a high living standard within PUDs and maintain its value in the long term.
Challenges
The real estate agent often faces the challenge of selling the property to a potential buyer who looks for complete autonomy and customization. However, if the buyer emphasizes more on the amenities and high standard of living and is ready to let go of the customization, it’s worth investing time in such buyers when selling PUDs.
Strategy-Centric Resale of PUD
The real estate agent needs to prepare a strategy for identifying the potential buyer and highlight the strength when pitching for PUD. If the buyer is adamant about customization elements, there’s little chance of converting the potential buyer into a real buyer.
Understand the Nitty-Gritty of the Surrounding Area
As a seller, the agent should know in depth about the amenities, the HOA rules and regulations, and other strengths of the property. It will make the selling task smooth and less time-consuming.
