I mentioned in a blog of recent past that you may want to consider a neighborhood with a community pool amenity if building or maintaining your own pool isn’t ideal. I thought I’d expand on the homeowner association topic a bit since it can play a major part in the home buying & home owning experience.
HOA's are most common in neighborhoods built in the last 15 years.
If you're buying new construction, you'll probably be involved in a HOA.
HOA’s are in place to maintain the look and, more importantly, the value of the neighborhood. It insures that your kooky neighbor won’t paint his door with a huge skeleton face on it or that the sweet old gal down the block doesn’t adopt all of town’s stray days and keep them in her backyard.
Some homeowners, however, don’t love the idea of being restricted by an HOA. Their mantra is: I own this house, how can they tell me what to do with my property? If you’re considering living in a neighborhood that is managed or maintained by an HOA, read on…
Love the pool? It's for you to use as long as you can agree to the
other rules & regs the HOA requires
-What are the dues and what do they cover?
Most times, the dues cover the master insurance policy, the common areas, the roads and sidewalks and a reserve for repairs and amenities. Will you have to pay an additional fee for use of the tennis courts or pool? And if all of the units have to be repainted, is there enough money in the reserves to cover it or will each owner be billed $2,000 on top of monthly payments?
-What are the limitations set by the HOA?
In some subdivisions, the HOA will not allow you to re-paint your door or park your RV in the front drive. Do you have a company vehicle with a logo on it? It may not be allowed, either. How do they feel about fences? Must it be at least 6 feet tall or only white?
-If you’re buying a condo/townhome, know where your property starts and stops:
Some complexes say the unit ownership begins at the studs while others say it’s at the unfinished perimeter wall. Do you own the land beneath you or not? Make sure your lender knows, too, whether it’s a condo or townhome. There’s often more stringent underwriting, and perhaps more money needed at down payment time, if it’s listed as a condo in the tax records.
Who owns this garden? Check with your HOA before you decide to plant your favorite flowers!
-Is the HOA doing a good job?
How are the gutters, sidewalks, and front entrances maintained? If they are less-than-desirable, you may not want to invest in a potentially declining neighborhood that the HOA is not helping to keep up.
The interior of the home? As long as it's legal...it's all you!
If you're wondering if a home your interested in is managed by a homeowners assocation, email me and I'll research who the group is and what their reputation is like. You can also read more on the Community Assocaitons Institute's website. CAI is a national educataion and advocacy group for HOA's.
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