Tellico Village Loudon Tennessee Sending Mixed Smoke Signals
Heads are turning at the Eastern Tennessee lake community, Tellico Village, as property owners are in the dark wondering about the financial strength of their property owners association. Last month, the Tellico Village Property Owners Association laid off 10 long term employees to trim expenditures and borrowed $250,000 to meet budget deficits.
Tellico Village is located Tellico Lake at the base of the Great Smoky Mountains. There are eight Loudon real estate neighborhoods affectionately named after Cherokee towns and villages. The news in the Knoxvillebiz today came to us as smoke signals. And when there’s smoke, there’s usually fire behind it. As we read the story, we found it interesting one of the property owner’s suggested closing the yacht club to save money. We visited the yacht club in the spring and to me, closing the yacht club would negatively have an impact on Tellico Village, although closing the yacht club is easiest thing to do to save money. Tellico Village is clearly a golf and boating Eastern Tennessee lake community. The community hugs the shoreline of 16,000 acre Tellico Lake, one of America's cleanest lakes and most homes have views of the lake. While the property owners association may be in a cut back mode, it seems the yacht club needs an extreme makeover and a required social membership.
Tellico Village began development in 1986, more than 20 years ago. Older communities run into issues like these as their amenities deteriorate and become outdated. Well managed property owners associations budget for reserves to refurbish amenities frequently, keeping them up to par. Clearly the frugal board's of the past created hurdles for the current Board of Directors by not maintaining adequate reserves specifically dedicated for this purpose. Delinquent assessments and dues are completely separate issues. The Board of Directors may want to rethink the requirement to join the club when purchasing at Tellico Village. Mandated social memberships could provide enough cash to refurbish the yacht club, golf clubs and engage the community in the clubs year round. Residents of master planned communities are unrealistic to think they can have access to quality amenities such as golf clubs and yacht clubs and not be required to join the clubs. Clubs must provide fantastic food, entertainment and be ascetically appealing to attract members.
Coincidentally, we have been combing through Loudon real estate public records this week sending out scorecards to residents of Tellico Village. We noticed sales in 2011 have been strong. There have been 160 sales in the first 10 months, 80 lots and 80 single family homes. The lot sales we found the most interesting. Half of the lots sold for less than $10,000 each which to us is a negative signal. A number of investment groups have been purchasing. One investment group bought 7 lots assessed for a total of $155,000 and the investor paid a total of $2,400. Lucky him. Loudon real estate public records does not identify the sellers which left me wondering who has been selling 40 lots deeply discounted? We noticed a number of property owners purchasing additional lots which is a positive signal. We also noticed the Tellico Village Property Owners Association purchased 14 lots during the same period which doesn't make sense.
The smoke signals are mixed at Tellico Village and we look forward to seeing what property owners have to say about Tellico Village on our scorecards. Buyers ARE interested in owning at Tellico Village, an Eastern Tennessee lake community. We wish the Board of Directors luck through these challenging times. Truly engaging property owners in these decisions could pay off happy dividends if the Board of Directors can clearly paint a picture of what Tellico Village can become. There are enough property owners at Tellico Village to make good things happen.
We like Tellico Village very much and will keep you posted on their progress. If you'd like to be connected with our colleague who lives at Tellico Village and is a master Loudon real estate negotiator, write us at info@communityfinder.com or call us toll free at 866.384.1799
