In today’s market, there is a high likelihood of encountering an HOA while searching for your perfect home. Are the perks worth it? Let’s talk about some of the pros and cons to help you make a better decision for your family.
An HOA is a supervisory organization, generally made up from the members in a planned community. It creates a shared community fee to support and add value to the community. HOA’s definitely range in price and in what types of services they provide; however, some of the perks may be a benefit to you. From Webster’s dictionary, amenities are something that helps to provide comfort, convenience, or enjoyment.
What are some amenities and services that could give you and your family enjoyment? Pools provide enjoyment while easing the burden of maintenance. Playgrounds provide a place for young families to burn off the energy of their children and making new friends, all from the convenience of your own neighborhood. Exciting new social activities such as farmers markets, food trucks, art shows and the like are coordinated by the HOA to bring the community together, provide a friendly atmosphere, and supply residents with an opportunity to shop with local vendors.
Lawn and grounds management keep the community looking its best. The HOA provides standards to create a cohesive community. It provides a place for conflict resolution if the need arises. To top it off, volume 112 of the Journal of Urban Economics, July 2019, article states, “houses in HOA’s have prices that are on average 4% greater than observably similar houses outside of HOA’s.”
With the advantages of an HOA, there are also some drawbacks. As stated above, there is a fee, also called dues, associated with an HOA, and it will vary among communities. These dues are mandatory for all within the community. With a great deal of amenities, the dues can be very expensive. These expenses are, in addition, to your mortgage, property tax, and homeowner’s insurance. HOA’s mean serious business. If you break some of the guidelines you can be looking at fines and possibly liens if the fines are not paid. They generally have guidelines on the structure, lawn and any additional items placed on or around the home. They can have guidelines regarding placement of garbage cans, pets, dimensions of mailboxes, or signs in the yard. They can also govern parking on sidewalks and streets.
Ultimately, the HOA is looking out for the best interest and safety of the community and wants the neighborhood to have a specific presence. The meticulous details of the rules and guidelines may be a drawback for some.
In conclusion, as you are searching for your perfect home, you are bound to run across different HOA’s. Mike and Brandie Brown and the Josh Vernon Group can help you obtain a copy of HOA policies for the communities in your home search. With their real estate experience, they will help you walk through the guidelines, amenities, standards and fees in order to help you find the best fit for your family, lifestyle and budget.