If you are considering the purchase of a home in a subdivision or condo complex, it is likely that you will become a member of a homeowners association (HOA). An HOA is comprised of all of the homeowners in the same neighborhood or development and is typically governed by a board of directors. The HOA usually has some control over how properties are utilized and provides services and amenities to the community.
An HOA can be beneficial in many ways, including:
Appearance: Most homes within an HOA are required to keep up with the standards of curb appeal set by the association. Otherwise, the homeowner is subject to a potential fine. Because of these standards, you are less likely to find unkempt lawns, commercial vehicles, and peeling paint in your neighborhood.
Amenities: Many HOAs provide recreational amenities to residents. These amenities often include swimming pools, tennis courts, golf courses, walking trails and other community features.
Management: If you have a complaint about something with your neighbor, the HOA may be able to handle the issue rather than leaving residents to deal with the disputes.
Bonding: Most HOAs have board meetings and host community activities. These events are an excellent way to get to know your neighbors.
But these perks some homeowners enjoy come with a price, including:
Dues: HOA fees are mandatory and can be expensive depending on the community and the amenities and services offered. Most monthly dues, however, range from $100 to $300. Condominiums will usually charge higher fees.
Less freedom: In an HOA-governed community, you are required to abide by its rules. This could mean that you may need approval from your HOA’s board to make certain changes to your property – whether it be limited paint colors and a lawn-mowing schedule, for example.
For some people, a neighborhood with an HOA may not be the right choice, but there are certainly many positives, such as having property values remain strong because of high community standards. If the neighborhoods you like have an HOA, be sure to inquire about the costs involved and weigh out whether their amenities are worth the investment.
When you are ready to buy a home, call Dream Home Lending to set up an appointment!
