Should we buy a house that is under a Homeowners Association?

Question

what are the pros and cons of having to deal with an HOA?

Answer 1

Pro's- Usually (but not always) make efforts to make sure residents keep they property kept up. Keeps the neighborhood looking good, which can help maintain property values. (Probably not much help in the current market anyway).

Cons-
1)They have an incredible amount of power. If you miss a few HOA payments, they can lien your property.
2) Depending on your state, HOA's are required by law to have a cash reserve. If the HOA's management company is not managed properly and they fall under the reserve amount, they are liable for making up the shortfall, which will be done by increasing your HOA fees. I have personally experienced this, so trust me.
3) In relation to #2 above, you could be paying increased fees with no increased benefits.
4) Before you buy, find out who the board of directors is. Your Realtor can usually find this out for you, and the board is usually made up of neighborhood residents. I highly suggest asking to attend a board meeting (all residents are usually welcome). Observe the meeting and see if the board is really concerned about the neighborhood, or tries to have too much control, or is just meeting for a social event. Beware of a board that is made of a neighborhood clique. This means that they think the rules apply to everyone but them, and they think they are exempt.

Answer 2

I managed HOA's for many years. They are good in the sense that the home values are usually maintained better in the HOA communities than those without. The reason is that your neighbor will never paint his house purple with yellow dots or have a car up on blocks. These are things that lower the value of the houses and may keep your house from selling down the road.

All those who live in HOA communities and don't mind following the rules in order to preserve the value, have no problem with an Association.

Those who want to play loud music, work on cars in the drive way, have broken/rusted furniture on the front porch, have 12 toys on the front lawn, have grass a foot tall, have ripped out screens, have cable running across the sides of the house, don't pickup after their dog uses the lawn for a bathroom and who have huge dogs NOT on leashes, are some of the people who don't need to live in HOA communities. That's why I PREFER the HOA. I refuse to live with pigs who don't respect their lawns or neighborhood. They need to live FAR out in the country somewhere.

Answer 3

Pro: an HOA is a method for establishing and enforcing minimum standards in a neighborhood, which can help maintain property values. For example, in an unregulated neighborhood, if your next-door neighbor has an absolutely trashy exterior that is not kept up at all, there isn't much you can do about it. An HOA typically has the legal authority to mandate appearance and upkeep, and to take action when necessary.

Con: It's galling to "own" a property but have to ask permission to do things to it. For example, you have to get approval of the color to paint your own house.

My home is in an HOA, and fortunately the people running it are reasonable. But with the wrong people in power, an HOA can make your life miserable.

Answer 4

There are places where it is increasingly difficult to buy a house that is NOT governed by an HOA - especially in new growth areas. Most recent housing developments have them because local governments are essentially off loading some of their more costly functions -- like road & street light maintenance, lot clearing & zoning enforcement -- to local homeowners who now have to tax themselves to perform these functions. They are absolutely necessary for gated communities & common facilities like swimming pools or cable access.

Whether an HOA is more PIA than benefit depends on what restrictions if any the HOA enforces and whether you are of the "Live free or die" mentality or the "I want to live in a nice neighborhood where everyone cooperates to maintain quality of life and maintain the economic value of our home" view.

Answer 5

You should request a copy of the HOA rules and regulations. At that time you all need to sit down and go over each rule and realistically evaluate whether you can live according to these rules. I warn you to not let your emotions for the home be weighed into this decision. 2 years from after you purchase the home then your astonishment with how amazing the home is will have worn off and you will still have to live there. Hope I helped.

Answer 6

HOA's are nothing short of a PIA ( pain in the a**) They rarely live up to their end of the agreement, read very closely the HOA rules and regs, they will try to weasle out of them anytime they can... In my opinion they employees are underpaid and are giving into the job what they are getting paid to do it... Pros: basically they are supposed to cover landscaping, keeping the neighborhood clean and updated, if you have a community park or pool they are to maintain it.... Cons: you must prove absolutly everything that you bring forth, often don't keep landscaping in order, very hard to get ahold of... at least in my experiences.,.. and you MUST comply with them or a Lien goes against your house..

Answer 7

If I had two houses to choose from, both the same in every way basically, but one had a homeowner's assoc. attached to it, I think I'd choose the other. I can appreciate what they're trying to do but it isn't always fair in the neighborhood and they can get pretty picky. We've had notices that our mailbox has a little green algae on it, we had to wash it right away. Same for the trim around the entire roofline. Greenish tinge to it, had to come off. THAT was fun to do. But it's nice to know there isn't junk cars lining our street, and all that stuff. Plus it's SO expensive!!

Answer 8

Personally, I would not buy such a house because if I am spending my hard earned money on *my* home, I will be d@mned if someone is going to tell me how to cut my grass or what lawn decorations they like, etc. Now I'm not saying I want to have a field instead of a lawn and pink flamingoes everywhere, but I would not appreciate having restrictions on anything having to do with my home. That's what apartments are for.

Answer 9

There are good and bad. It's like joining a union. Read every single rule they have for everything. See what it takes to change the rules and how quickly they can be changed.
Find out about costs, fees, etc.

If you can live with all that then go for it. Otherwise don't. They are a legal battle nightmare to fight.

Answer 10

I sure wouldn't. I don't like people telling me I have to decorate a certain way, or the kind of grass I have to plant etc. etc. etc.etc.