Informal Information on the Rumored Optima Camelview Lawsuit with the Developer
I would like to be very clear that we do not have any firsthand knowledge on the rumored legal proceedings between the Optima Camelview HOA and the developers of the Optima Camelview. The information below is strictly based on hearsay and what we learned from being involved in several transactions from the Optima Camelview in Old Town Scottsdale.
Was the Optima Camelview Village involved in a lawsuit with the developer?
It is our understanding that the disagreements between the Optima Camelview and the developer (David Hovey) never actually resulted in any litigation. The compensation for the alleged defects was amicably agreed upon between the Optima Camelview Home Owners' Association and the company that insured the Optima developers.
Was the value of the condos in the Optima Camelview effected by the proceedings?
During the time that there was concern of litigation at the Optima, the average price per square foot in the Optima was reduced. While we can't say for sure the reason for this decline, there a few items that often lead to reduced condo sales prices while there is pending or active litigation in a condominium community in Arizona. These reasons include:
- Lending - When the HOA management office completes the condo questionnaire required in Arizona there is a point at which they must disclose there is pending litigation. This can cause banks and mortgage brokers to not want to lend money while the outcome is determined
- Fear of special assessments - When it is believed that there are defects within a condo community people are often concerned that those defects will need to be fixed via a special assessment
- Self-fulfilling prophecy - Homeowners are often afraid that their property values are going to go down and as such decide to sell their condos. This, of course, leads to reduced sales prices as the inventory is high.
- Fear of the unknown - Potential buyers are generally scared of purchasing into anything that may result in them have any sort of role in litigation
How much was the Optima Camelview Lawsuit Settlement for?
The amount of the settlement was not disclosed by the Optima HOA as part of the agreement between the HOA and the insurance company was a non-disclosure agreement.
Home prices went up after the Optima Camelview's pending legal matters and then dipped again...
As can be expected, once word got out that all matters had been resolved and that the Optima now had a big chunk of money from the insurance company, the Optima property values increased. What's more interesting, however, is that shortly after the renovations that the money was awarded to complete started. Shortly thereafter we saw property values begin to decrease again. At the time of this writing, we are still seeing this. There are tons of renovations going on around the Optima (both repairs of defects as well as general upkeep) that seem to be scaring away some people.
Possibly a great time to buy at The Optima
To summarize the above:
- The threat of litigation over defects lead to prices at the Optima Camelview to fall
- The HOA and the developer's insurance company settled and The Optima got a big chunk of money
- The HOA is now using that money to make the Optima even nicer and more updated
- Because these projects are occurring prices are dropping again while things are "under construction"
Here's what the old hallways look like (about 25% have been remodeled so far)
Here's what the new hallways look like once they're complete:
Residents have to live with a construction zone for a little while but it's well worth it! While some of the hallway repairs were paid for by the settlement, some of it is simply a refresh.
Here's what the indoor pool looks like right now...eek.
But guess what? It'll all be brand new when it's done!
You have to come to your own conclusion about how long before the Optima prices go back up
While we can't say for sure that properties will go back up, it is pretty reasonable to believe that it's likely that the Optima will be that much of a nicer place once all of these improvements are made.
Many of the improvements happening right now in the Optima are also due to things being 10 years old and the Optima just wanting to keep things looking good. A great example of this is the hallway refreshes that are currently occurring.
What do you think about Optima Lawsuit stuff? Comment below!
Want to learn more about the Optima or other properties in Phoenix / Scottsdale? Call or text Andrea at 480-387-3990