If you are thinking about buying a home, you have probably thought about whether or not you should buy a home in a neighborhood that has a homeowners association (HOA) due to the potential for having to pay homeowners association fees, among other things. Besides, do you really want to have someone telling you what you can and can’t do? Well, the answer is maybe. But exactly how do you go about determining whether or not having a homeowners association is a good thing? That’s a legitimate question and one we are going to help you answer. So let’s go over some of the pros and cons of living in a neighborhood with an HOA then you can decide for yourself whether or not it fits with your lifestyle and your current family situation.
What Are the Pros of Having a Homeowners Association?
There are plenty of reasons to look favorably upon a community homeowners association. Here are some of the pros of having a homeowners association and what might make the homeowners association fees worth paying for.
Amenities. A homeowners association generally provides the community with a number of amenities that could benefit you and your family. Many HOA communities have a community pool, which would save you from having to pay for a membership to use a pool elsewhere or pay to have a pool installed and incur the expense of the extra utilities and upkeep. An HOA will also sometimes provide one or more of the following:  A clubhouse, tennis courts, golf course, fitness center, playground, walking trails, a community newsletter and more, but they are usually community specific; therefore, you will have to check with each HOA to determine exactly what they do and don’t offer.
Activities. Many homeowners associations are responsible for monthly activities for everyone who lives in the community. Anything from bingo, to spaghetti dinners, pancake breakfasts, chili cook-off’s, quilting events, cooking classes and numerous other types of activities, meet-ups and get togethers.
Community Upkeep. One of the main responsibilities for most homeowners associations is to maintain the standards of the community. This usually means having a certain set of rules in which everyone has to follow such as the community appearance, landscaping standards, trash control, adhering to community paint color schemes, pet regulations, fencing and any other community related policies. This is perfect for preventing neglect within the community and will also help maintain the property values in the neighborhood as well.
Monthly Maintenance. Some HOA’s even provide community maintenance services such as cutting the grass, weed control, shoveling snow and more. Each community has their own set of services they provide; therefore, you will have to check with each one you are considering, if you want to compare what they have to offer and assess if those services would be of benefit to you. And to see if the homeowners association fees are worth what you would be paying for them.
Conflict Resolution. If you ever have a dispute with one of your neighbors, a homeowners association will generally step in and help you resolve the conflict. This can be helpful for any number of reasons. If your neighbor has a dog that barks incessantly, has wild parties every weekend, plays their music way too loud, is continually letting their trash blow into your yard or whatever the case may be, a homeowners association can be a huge asset when it comes to finding a resolution without it resulting in any hard feelings or having to worry about retaliation.
What Are the Cons of Having a Homeowners Association?
In some cases, the cons of having a homeowners association far outweigh the pros. However, this is something only you can decide. And it will be determined by how much you are willing to pay each month and if you agree with the community policies that are in place. But here are some of the most common cons of having a homeowners association.
Foreclosure Is Possible. Many people don’t realize that if you fail pay your homeowners association fees the HOA can actually take you to court and foreclose on your home. So please don’t make the mistake of moving into a community with a HOA thinking that you just won’t pay the fees, because this will not work out in your favor and could cause you to lose your home. This also means you need to make sure you can comfortably afford to pay the monthly homeowners association fees before committing to any home that is in such a community.
Unexpected Fees. Yep, you could have to pay unexpected fees if the HOA doesn’t have enough cash reserves to cover any of their needed expenditures. That means you and the other residents in the community will have to come up with the money to pay for whatever it is the community needs above and beyond what is in the reserve. And, unfortunately, almost 70 percent of all HOA’s are severely underfunded. So this is something you need to be very aware of by asking to view the HOA’s financials and reserve funds before you make any decisions. And even if they are in good shape currently, doesn’t mean that won’t change in the future. So you have to be careful.
You Must Follow the Rules. In a community with a homeowners association, you must follow the rules that have been set in place whether you agree with them or not. Additionally, those rules are subject to change; therefore, you should make sure you are moving into a community where everyone, including the HOA leaders, gets along reasonably well. Because a homeowners association can dictate exactly what you can and can’t do including what flowers you can plant, how long your grass should be, what colors you can paint your house, what types of pets you can and can’t have, whether or not you can have a fence and what types of decorations you are allowed to use, if any.
The Bottom Line
In most cases, when you live in a neighborhood that has a homeowners association, you are bound by the rules and regulations of the community. And very rarely will you win in a court battle if it comes to that, although it does happen from time to time. Therefore, unless you fully understand and agree with the way the homeowners association chooses to manage the community, you would be better off choosing a home in a neighborhood without one. However, if you do like the way the community looks and the policies are agreeable, then that might just be the perfect place to call home.
2 Point Highlight
1. If you are thinking about buying a home, you have probably thought about whether or not you should buy a home in a neighborhood that has a homeowners association (HOA) due to the potential for having to pay homeowners association fees, among other things.
2. In most cases, when you live in a neighborhood that has a homeowners association, you are bound by the rules and regulations of the community.
