There are many area of the country where you can buy a home in a subdivision that has a homeowners association (HOA). Some people love to do that, and others would prefer not to. Even if an HOA sounds great, there can be both pros and cons to them and it’s important to explore what they offer to you before you decide to purchase a particular house in that area. In some cases, homeowners associations offer levels of protection you don’t get on your own. However, buyers may also feel that these associations are too restrictive. There can be fines and penalties for things they wouldn’t have to worry about in non-HOA areas, meaning extra expenses they might not have considered when they purchased their home.
1). Can you leave your trash cans out?
HOAs often have rules for how they want the neighborhood to look. Trash cans are a common problem for these communities, because people tend to put them out the night before pickup and then forget to roll them back in after pickup has occurred. They may work, and not be able to put the cans away until they get home later in the day. While that can seem picky to some, it’s important to consider whether that will be a problem for you.
2). Where can you park that extra car?
The majority of HOA’s don’t allow you to park an extra car on the street or in your yard. You may not even be able to park in your driveway. Instead, they will want you to put your car in the garage when it’s not in use. Whether you find that too restrictive on your lifestyle is a choice that only you can make. HOA living can be very neat and orderly, but it’s not for everyone.
3). Is there a monthly fee?
One thing to consider when you buy a house is the cost of it over and above your mortgage payment. With an HOA, you may have a monthly, quarterly, or yearly fee that you pay to help maintain the neighborhood and the common areas that people use, such as parks and recreational locations. The amount of the fee, and the fact that it’s likely to rise over time, should be considered before you buy the house.
4). How much will the penalties be?
If you violate the bylaws of an HOA, they will often give you a warning the first time. After that, there will be a fine you’ll need to pay. The amount of that penalty depends on the HOA and the infraction, as some penalties are more serious than others. Make sure you consider that carefully before you purchase, so you know what to expect and which rules must be followed to avoid significant financial hardship.
5). Have you read the bylaws?
Along with purchasing your new home, you’ll want to read the bylaws of the HOA where that home is located. If there are things in there you simply can’t accept or agree to, then that home really isn’t the one for you. That’s very important to think about, since you’ll be living with those bylaws as long as you own your home. Glossing over them isn’t a good idea, and could lead to dissatisfaction with your home or neighborhood later on.
6). Did you cut the grass on time?
Like leaving trash cans out, keeping the grass cut is often very important to an HOA. They want to maintain a certain look to the neighborhood, and keeping the grass cut is part of that. Make sure you know what their regulation is on that, and that you either keep it cut on time or hire someone to handle it for you, to avoid penalties.
7). Can you appeal an HOA decision?
There’s always the opportunity to disagree with a decision that the HOA has made, but it may not get you very far to do so. Local authorities almost always rule in favor of the HOA, because the bylaws are usually written to reduce the chance of a homeowner appealing anything successfully. Following HOA rules without question is something you should be prepared to do.
8). Who gets a vote when there are potential changes?
Most HOAs have a board of directors, and the people who serve on the board are the ones who vote yes or no to a change that may be made. However, the community may also have a say, and the HOA can hold meetings where homeowners can come forward and voice their concerns. HOAs can be very good for protection of property values, because of their strict rules.
9). What can you do if you really don’t like your HOA?
There are plenty of myths surrounding homeowners associations, and understanding what those are can help you choose the right house to buy. One of the biggest things people wonder about is whether they will have to move if they don’t like their HOA. Unfortunately, that may be the case. An HOA is unlikely to change to accommodate you, and if you find that their rules aren’t something you can live with, it may be the right choice to either not buy that house, or to move if you’ve already purchased it. For many homeowners, though, having an HOA provides them with service and value they wouldn’t otherwise have, making the rules well worth it to them.
2 Point Highlight
There are plenty of myths surrounding homeowners associations, and understanding what those are can help you choose the right house to buy.
Even if a homeowners association sounds great, there can be both pros and cons to them and it’s important to explore what they offer to you before you decide to purchase a particular house in that area.
