Many first-time buyers are confused about what a HOA is and does. If this is you, you must understand the place a HOA will play in your life before you consider purchasing a home. If you have trouble understanding a HOA, that’s understandable. A HOA is an organization that manages and maintains common areas of a community. This can include streets, roads, landscaping, and buildings. How this is accomplished varies. When you own a home subject to a HOA, you will usually have monthly dues that are used to maintain or repair shared structures.
Understanding a HOA
At the same time, the CC&Rs, covenants, conditions and restrictions, affects what you are or aren’t allowed to do to your own home. You want to pay attention to the details of a HOAs CC&Rs (I know – a lot of abbreviations), as it will outline how strict the HOA is or isn’t. While they may be reasonable restrictions, like not parking on the front line, they might include what color you can paint your garage door.
Generally, condo owners are more limited by HOA restrictions than single-family homes. However, it’s important to consider all restrictions before purchasing your next residence – whether it’s a condo or single family residence. Consider the following questions you should ask the HOA before making an offer.
1. Am I comfortable with sharing decision-making on my own home? You own the home – it’s true. It’s yours – it’s true, but if you have agreed to a HOA, you agree to abide by the CC&Rs – like it or not.
2. What will you be paying out to the HOA, and have fees increased with time? If so, how much have they increased? The fees will affect your budget, whether you pay monthly or yearly, if they increase. Some homeowners are expected to contribute to any upgrades or repairs in addition to required HOA fees.
CC&Rs
3. Please explain all of the CC&Rs. Request a copy of the CC&Rs and be sure to understand them all before purchasing a home. In addition, ask if you can sit in on a HOA board meeting. If not, will they provide you with notes from past meetings. This gives you an idea of the temperament of this particular HOA and what conflicts have arisen in the past.
4. Is the home you want to purchase in compliance with the CC&Rs? If you want to make an offer on a home that isn’t in compliance, you need to understand the problems you may be facing after you own the home.
Some Like the Idea of an HOA
Some homeowners like the idea of neighbors setting community or building standards. If that’s you, a HOA would be appealing. If not, there are plenty of homes in the area that aren’t governed by a HOA. Get in touch with me today and I can show you homes in the area without, or with if you prefer, a HOA.