When it comes to purchasing a house there are some factors outside the home you will need to keep in mind. Like the local education system—homeowners associations (HOA) are an important factor to keep in mind when purchasing a long-term home for your family.
While not a make or break part of the purchase, an HOA can have a larger impact on your life than you'd expect.
When planning your home purchase you should be aware of what an HOA is along with the pros and cons associated with being part of one.
What is an HOA?
An HOA is an entity comprised of all the members in a given community that enforces rules for living there. These rules center around making the community as presentable as possible and keeping home values as high as they can be.
While some rules seem like common sense—such as keeping your lawn in presentable condition—others can feel like an invasion of your freedom like being told which species of plants you can and cannot have in your garden.
If you are considering moving into a home with an HOA, you will want to brush up on their rules before making any final decisions.
Keep in mind!
When you close on a home in a community with an HOA you are agreeing to the terms and fees associated with it.
HOA: Pros
- Maintenance and upkeep of common areas: HOA is responsible for maintaining all non-residential areas within the community
- Improved property values: Homeowners keeping their properties within the guidelines improves value across the board—which can help when you want to tap your home's equity.
- Amenities and community events: Community basketball courts, social events, etc.
These aspects of an HOA can boost your home's value along with your family's enjoyment of the community over time.
HOA Cons
- Fees and assessments: HOA's collect monthly fees to help with community upkeep, the board of your HOA will determine what the fees will be
- Restrictions on personal property use and modifications: Being limited to community rules on your property's customization leaves you with fewer ways to make your house your own
- Limited control over association decision-making: Everybody needs to be consulted when making decisions for the community