Are you considering buying a condominium, townhouse, or home in any type of planned development including a subdivision? If so, you should be aware of whether or not the neighborhood you are looking at requires that residents join the community’s homeowners association, or, HOA.
In most communities with HOAs, residents pay a monthly or annual fee for the upkeep of common areas, landscaping at the neighborhood’s entrances and other amenities given the size and scale of the neighborhood.
Fees typically range anywhere from $200 to $400 per month, with the more upscale neighborhoods boasting the higher fees.
In addition to the maintenance of common areas in the neighborhood, the HOA also generally outlines rules that residents must follow, referred to as covenants, conditions and restrictions. Rules may include what color you are allowed to paint your home, the exterior landscaping you are allowed to do, the types of vehicles you can park in your driveway, the types of holiday decorations you are allowed to use, whether you can make additions to your home, and so on.
If this sounds restrictive, keep in mind that the HOA exists to maintain a certain standard of living throughout the neighborhood, which in most instances will work to your benefit.
Before you buy a dwelling or property in a community with an HOA, you should:
Learn the rules.
Many HOA covenants are available for viewing on the subdivision or community’s website. If you cannot find it online, ask your real estate agent or the HOA itself to view the documents. Make sure to check to see what the penalties are for nonpayment of dues or fines resulting from violations. You should also determine what the process is for changing or adding new rules, as well as when the HOA meets. Make sure you are agreeable to all of this ahead of time.
Attend a meeting.
Even before you buy, it would be helpful for you to get a copy of the HOA’s last meeting minutes or to attend a meeting to get a feel for how the group operates. Make sure the HOA appears professionally managed and that it is able to deal with conflict in a rational manner.
Factor in the finances.
How are the HOA’s fee increases set, how often do these occur, and how many times have they happened in the past? How large is the HOA’s reserve fund? Try to get to the bottom of as much of this information as possible.
Make sure the home you are buying is already in compliance.
You do not want to inherit a problem and start off on the wrong foot in your new neighborhood.
Ask yourself, is an HOA right for me?
Some people simply do not do well being placed under rules and regulations, especially when it comes to home ownership. Make sure you will be OK with this, and make sure the fees fit into your financial plans as well.
The bottom line when it comes to considering entering into an HOA is to make sure that the benefits it offers outweigh the negatives—which include restrictions and fees. If so, then an HOA can be a helpful entity that you’ll be happy to support in its mission to make the neighborhood an ideal place to live.
For your real estate needs in Auburn and Opelika, contact Realtor Ryan Roberts today at 334-750-9872, or at [email protected]!
