When it comes to buying a house, prospective buyers have a lot to consider. From the home’s price to its location and distance to work and play, there are numerous factors that need to come together in order to successfully make your way through the process. But many house hunters often overlook the cost and rules that come along with a homeowners association.
In its simplest definition, an HOA is a legal entity that manages a shared housing complex, whether it’s a condo building, a row of townhouses or a suburban housing development with shared space. While not every new home is affiliated with an HOA, many communities are, making this one area that can’t be overlooked when it comes to making a decision.
The easiest way to determine if a home you’re looking at is part of an HOA is to ask your agent or look closely at the listing yourself. The last thing you want is to be saddled with unexpected fees once you move into a new space.
When it comes to the cost associated with an HOA, it’s important to remember that it varies. Most homeowners associations collect monthly dues and use the money to fund activities that everyone in the community can take part in such as Halloween parties for the kids or a neighborhood wine and cheese night. This may be a great selling point for a new family moving into the area, but make sure you can afford the dues before signing the dotted line.
In a condo or townhome setting, the money from an HOA goes toward common elements such as landscaping, snow removal, fencing, mailboxes and entry gates. HOA fees can also be used to pay for the development’s security, maintain a shared swimming pool or playground and manage a shared septic system.
If you’re looking at properties that are part of an HOA, keep in mind that you can’t simply come and go from the association as you please. If you buy a property with an HOA, you’re required to be a part of it. While the structure of an association can vary depending on the total number of members, most have a president, treasurer and some elected board members.
Aside from the fees associated with an HOA, there may also be rules about what color you’re allowed to paint your door, the type of mailbox you can have, or even where you must place your garbage pails. If you consistently break the rules, you may be fined.
An HOA also has a say in whether you can do certain remodeling projects such as building a deck or adding a swimming pool.
There are many benefits associated with purchasing a home that’s part of an HOA, but before making a final decision, make sure you understand everything that’s required.
To learn more about homeowners associations, contact our office today.
Published with permission from RISMedia.