“A well-run and managed HOA can be a blessing, and a poorly managed HOA can be a curse, “says Bruce Ailion, a realtor at Country in Woodstock, Ga. Therefore, you need to explore the perks of living in a specific HOA home before purchasing it.
Many residential communities have a Homeowners Association (HOA) structure to emboss a clean and cohesive atmosphere around the neighborhood. But is it worth living in an Homeowners Association (HOA) community?
Today, numerous homebuyers are preferring Homeowners Association (HOA) properties as it governs 80% of houses in new subdivisions and 60% of the newly-built single-family house. On the other hand, some homeowners regret buying an HOA home because they see HOAs as controlling their freedom to utilize the property according to their preference.
Let’s count the Pros and Cons of Homeowners Association so you can examine if an HOA home fits you.
PRO # 1: Stabilized Property Values
Homeowners’ associations don’t compromise on having strict home appearance as well as well-kept common areas. You won’t see any inadequate homes on the block disturbing the view and eventually prices of the overall properties.
HOAs also suit buyers preferring a low-maintenance lifestyle. “For people who are retiring, they love it,” said Martin Luna, a real estate agent in Asheville, North Carolina.
Hence, property values of the Homeowners Association community tend to be stable even when the surrounding areas are having tough times.
PRO # 2: Neighborhood Dispute Settlements
Homeowner associations provide reliable ways to solve issues with other parties. For instance; you might face an issue with a neighbor over load parties or a barking dog. For this case, your community management company will solve your issue on the behalf of homeowner association and ensure that everything is amicably resolved.
PRO # 3: Incredible Neighborhood Views
Generally, an Homeowners Association establishes rules and regulations that provide strict guidelines about keeping the property.
Homeowners’ Associations can take care of:
- Cleaning and painting building exteriors
- Clean and maintain common interiors
- A/C and Heating systems, lighting and electrical systems, elevators, plumbing, and security systems in common areas
- Repairing roads, roofs, walls, and building components (especially in a condo complex)
- Trash removal
- Snow removal
From infrastructure development to basic maintenance, all the management is efficiently managed by the Homeowners Association (HOA) and thus your community will be safe, beautiful, and bringing out incredible neighborhood views.
CON # 1: HOA Dues
Sometimes called dues, you have to pay a mandatory fee when encountering an Homeowners Association (HOA) property. This fee can be steep depending on the location and community since two real estate researchers; Clarke and Freedman disclosed in the study that the average HOA fees charged for single-family homeowners are $2800 per year.
According to Martin Luna: HOA fees can exceed as much as 10,000 per year. “That’s going to affect the budget to buy the house,” he said. “That’s less buying power for some buyers.”
CON # 2: Lien or Foreclosure Risk
HOA charges a fixed fee besides the mortgage, homeowner’s insurance, and property taxes. You have to pay the fee even if you are not availing of all the amenities.
They also impose a fine when a violation of community standards and rules occur. These fines may include violations such as parking in undesignated areas, ignoring lawn care and noise restrictions. If you somehow failed to pay these fines or regular fees, HOA may put a lien or foreclosure on your property.
CON # 3: Permission for Exterior Improvements
Every new homeowner wants to renovate the exterior house according to its desire. But some Homeowners Associations doesn’t allow you to make exterior improvements on your own. Usually, you have to submit a request according to the required renovation.
Whether it is the addition of garage or pool addition, you have to forward the request and proceed through the paperwork. Moreover, Homeowners Association (HOA) considers the shape, size, material, and color you are using in the renovations. Therefore, your request may take months to approve and the construction will be pending for that time.