It would be best to understand several things before moving to a new home in a different neighborhood. The Homeowner’s Association (HOA) is one potential association to look out for.
Living in a neighborhood with a homeowners’ association has both advantages and disadvantages. Find out more.
WHAT IS A HOA?
A homeowners’ association (HOA) is an independent association governed by a board of directors elected by the association’s members. It can be formed in a community of residential homes, townhouses, condos, and apartment complexes. The Obligations of the Association include:
- Holding meetings,
- Making budgets,
- Enforcing rules, bylaws,
- And certain restrictions to safeguard and preserve the community.
However, according to the community standard, you may be required to pay monthly, quarterly, or annual dues/fees. This fee is used to:
- Maintain and enhance shared facilities such as parks, pools, garbage disposal, road lighting, and security
- Erect new facilities in the community
- Make repairs in times of unbudgeted faults
Impact Of HOAs
A well-structured and effective HOAs can raise the price of homes in the neighborhood, which increases the demand for homes in the area and gives a high return when you intend to sell your home.
As a seller, you may have a smaller pool of purchasers if you don’t have an HOA. Likewise, overly high-priced HOA dues may make it more challenging to sell your house in the future.
WHY AND WHY NOT PURCHASE A HOME WITH AN HOA
You as an individual or family can find the bylaws and fees too restrictive and high, respectively. Therefore, it is essential to ask questions to know whether purchasing a house with an HOA is best for you.
Why you should purchase a house with an HOA
- A tidy and safe community to live in.
- Due to regulations governing your home, your property worth will probably benefit from greater stability.
- Access to upscale features like a swimming pool, playground, clubhouse, gym, or on-site security
- You get to meet and mingle with your well-networked neighbors in events organized by the HOA.
- Easier and faster dispute resolution among residents by the HOA board.
Why you should not purchase a house with an HOA
- There are sometimes restrictions on the types of pets to keep, the colors, and the design themes for your home.
- How you maintain and live in your home is often heavily regulated by HOAs. Such as the number of plants you can have and how high your mailbox can be.
- HOA dues may strain your monthly housing budget, mainly if your community already has high housing costs.
- Some communities have curfew times when they expect everyone to be home.
- Some HOA prohibits homeowners from renting out their property.
You can also ask questions about the association, such as:
- What are the rules and bylaws, including the fines?
- How is the association run?
- Do the board and residents have a lot of disagreements?
- How often does the board increase the dues?
- What exactly are the dues paid used for?
- What are the facilities available for the residents?
Ask to attend an HOA meeting or get a copy of the most recent minutes.
If you’re looking to buy a house in a community with an HOA, you need to be familiar with their regulations, and if you break them, you could be fined or sued. Depending on your state of residence, you may also be required to foreclose on your house if you don’t pay HOA fees.
With all this information, you should be able to decide if a home with an HOA is suitable for you. Do not hesitate to contact a qualified estate agent for more advice and recommendations about HOA.
Contact Information:
Email: [email protected]
Phone: 6865559012
