Posted on: 22 May 2019
Homeowner associations (HOA) have become so prevalent that many of those searching for a home will probably encounter one sooner or later. These governing groups exist in areas of widely varied demographics, from small townhouse communities to huge planned neighborhoods. The benefits, as well as the downsides of living under an HOA, vary greatly, and there are usually no standards that apply across all associations. Naturally, an HOA situation can be good in some ways, but it also might be too restrictive to some. Read on to learn more.
The Benefits of an HOA Neighborhood
While the rules and bylaws for a given HOA vary considerably, the oft-mentioned benefit is that the property maintains its value better when it is governed by an HOA. You can just imagine how that might be true when you consider that, without an HOA, you might have no options for dealing with unattractive elements in the area. For example, your home might lose its resale value because your neighbors used hot pink exterior paint on their home. The way the homes on your street look does affect the resale value, so having an HOA that prohibits certain paint colors protects your investment.
Another positive aspect of an HOA is that the dues paid by homeowners go toward making the neighborhood more attractive to buyers when you want to sell as well as offering amenities that make living there more pleasant. Often, you will find HOA neighborhoods with pools, workout facilities, walking and biking trails, tennis courts, and more. When you consider the cost of a golf club or gym membership, the dues may seem like a convenient bargain.
The Restrictions and the Cost
Not only are homes in HOA neighborhoods sometimes more expensive, but there are also dues to be paid. The amounts vary, and the more extensive the amenities are, the greater the cost is. Some of the dues go toward paying for landscape, street, and sidewalk maintenance, as well as trash collection and more. Be sure you have a complete understanding of the dues before you sign a contract to purchase.
Just as the dues vary, so do the rules. There are HOA neighborhoods for almost everyone due to a wide variety of restrictions. You might have a neighborhood that has a few parking and trash can rules nestled right alongside another that has rules on paint colors, pets, outbuildings and fences, types of vehicles allowed, and whether or not signs or flags are allowed in the yard.
To find out more about an HOA that governs your dream home, speak to your real estate agent.Share