Buying a home that’s part of a community typically means agreeing to live by a set of community-specific rules (aka homeowner association rules or HOA rules) and paying a monthly (or yearly) fee.
The fee contributes to the overall maintenance and management of the community. The rules ensure a certain standard of appearance and decorum is upheld. These rules and fees present some real pros and cons that are important to consider before buying.
HOA Sets Standards for Your Home
Your HOA can determine what appearance is acceptable for your home. This can include: paint color, front yard landscaping, cleaning schedule of your roof, how often you mow your lawn, how you landscape your front yard, and when and how you can decorate for the holidays.
CON: Lack of control. If you disagree with a statute of the HOA appearance rules, there’s very little you can do about it.
PRO: Maintain property value. Living next to an unkempt or rundown house can significantly reduce your property’s value. This is especially true when you get ready to put your home on the market.
HOA Provides Amenities
Many communities offer amenities such as a swimming pool, community park, and walking trail. The community pays for the care and maintenance of these amenities with your HOA dues.
CON: Lack of use. If you don’t think you’ll take advantage of the amenities provided by your community, you’ll still have to pay for them.
PRO: Extras. Footing the bill for your very own pool might be beyond your budget. However, sharing the expense with an entire neighborhood is a lot more affordable.
HOA Handles Disputes
When there is a dispute between neighbors, the HOA handles it.
CON: An extra voice. Sometimes the last thing you need is an extra voice butting in.
PRO: Voice of reason. When you’re in the heat of a disagreement about a noisy dog or loud party, it can be difficult to think rationally. Your HOA can provide the voice of reason to solve the problem.
Word to the Wise
- Your association fees are also included in your loan officer’s assessment of your monthly mortgage payment. This means, you need to be able to financially handle both your monthly mortgage payment and your monthly (or yearly) HOA dues.
- Read the rules before you buy. Typically you can get a copy of the HOA rules from the homeowners association. Or, you can visit the county clerk’s office. All HOA rules and restrictions are a matter of public record.
Have additional questions about how HOA rules work? Give me a call today.
Depending on the HOA, services such as trash and snow removal and lawn care are handled by the association, leaving less work for the homeowner. Typically, common areas are maintained by the association.