Are you ready to buy a new home? Are you considering a property with a Homeowners Association (HOA?)
Whether you’re purchasing a condo or a home in a subdivision, you may be interested in the perks that an HOA offers. Yet it’s also possible to remain confused about what you’re actually getting for your money.
What is an HOA, and are you ready to be a part of one? Let’s take a look.
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What is an HOA?
Essentially, an HOA is a small governing structure for a planned real estate community. As of 2018, around one-quarter of Americans were a part of some sort of community association.
Many planned developments will require you to join and pay fees in order to help cover the upkeep of certain common areas and shared structures. They also have rules and stipulations you need to abide by.
How Much Are HOA Fees?
HOA fees vary greatly and could be anywhere from $100 to $700 per month. Much will depend upon what you’re getting for your money.
Generally, the more services you get, the higher your fees will be. If you have a clubhouse, a pool, and a golf course in your community, you can expect to pay a bit more. Dues may also be higher in older buildings and complexes.
Who is On the HOA Board?
Your local HOA management is made up of HOA members who get elected by other HOA members.
The most effective board members are active members of the community who take great pride in where they live. They have an interest in the long-term health of their community.
Board members have a number of time-consuming responsibilities, so membership is best left to those who know they’ll be able to follow through on commitments. They may need to attend meetings or research the costs of different projects.
You may have a special skill that you feel could be an advantage to your community, such as accounting or project planning. If you have the time and dedication, you want to consider running for your HOA board.
What Types of Communities Have an HOA?
Singles and couples often join HOAs if they live in co-ops or condos. Many planned communities for families also have HOAs with kid-friendly amenities. In warmer climates, it’s a less expensive alternative to putting in their own pool.
Many senior communities also feature an HOA. More mature folks are ready to forego years of back-breaking snow-shoveling and lawn-mowing in favor of paying a monthly fee that ensures buildings and grounds are carefully maintained.
This is also a popular selling point for vacation homes. Families want to get away from their daily responsibilities when they go away. An HOA makes sure they don’t need to worry about outdoor upkeep.
What Are the Advantage of an HOA?
Many people love HOA’s because of the amenities they provide. If you’re an active individual or family ready to take advantage of everything your community has to offer, an HOA might be the perfect option for you.
Your HOA may include a fitness center, park, or playground. In warmer climates, there may be an outdoor complex that includes tennis courts, basketball courts, and a pool. Some may even have luxuries like a hot tub or lazy river.
Many individuals love HOAs because certain housekeeping responsibilities are handled by someone else. Trash removal, heating systems, and plumbing are all the crew’s responsibility in many HOA communities. If you find yourself paying a lot of money for these services in your current home, an HOA may be worth the investment.
HOAs may also include utilities as part of your monthly fee. Overall, this could end up saving you a bit of cash.
If you’re sociable, HOAs often host gatherings like pool parties or yard sales. They may also have large common spaces that you can rent for a nominal fee to host your own party.
If you’re thinking about your future home value, an HOA could end up saving you money down the line. This is because buyers tend to see planned communities as safer and better maintained.
What Should I Look Out For?
In some communities, an HOA is mandatory. Before you buy, you should know exactly what you’ll be getting for your money.
Think about what you’d be paying for bills on your own vs. what you’ll be spending on your HOA fees. Would it be less costly to hire a landscaper and join a local fitness complex?
You’ll also want to keep in mind that HOA’s require you to follow certain laws and regulations. You may not be able to paint your door a certain color or have company after a certain hour. There may also be regulations in terms of pets or overnight guests.
Before you buy, make sure you’re okay with abiding by these rules. Not doing so could cost you a significant amount in fines.
Remember that not paying your HOA dues could eventually damage your credit. You’ll need to budget for your payments each month. What you’re getting may or may not be a value, so it’s important to do your homework carefully.
The Value of an HOA
What is an HOA? For many, it’s an organization that provides wonderful amenities and services that make their home more desirable. If what you’re HOA is offering sounds appealing to you, do your research and get ready to make an important investment.
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