The popularity of homeowners associations (HOAs) has skyrocketed over the past decade, especially in the Midwest, South, and West. According to the US Census Bureau, 75% of all new construction homes belong to an HOA.
The pros of HOAs
✅ A sense of community. Community is important to Buyers, especially millennials.
Between HOA events and board meetings, Buyers have ample opportunities to meet their neighbors easily.
Additionally, well-run HOAs will handle that neighbor that keeps his lawn looking horrible which will reduce the likelihood of fights between neighbors!
✅ Lower maintenance and utility costs. HOAs generally have maintenance staff on call to address major problems. They also take care of community areas, keeping them clean and maintained.
Buyers will also have fewer responsibilities in setting up their utilities, like water, trash pickup, and snow removal. So, rather than paying a bunch of different bills themselves, homeowners in HOAs may be able to simply pay the HOA.
✅ Built-in amenities One of the biggest draws of HOAs is the amenities. Pools, gyms, golf courses, tennis courts, and playgrounds are just some of the amenities HOAs may provide. Well-run HOAs may also host community parties and social gatherings, making it even easier for new homeowners to make friends and settle into the neighborhood.
The cons of HOAs
🔴 HOA Fees. Many HOA Buyers can expect to pay between $200 and $.... a month in fees. However, not all HOAs are created equal. Please make sure to check before buying your new home.
You should have a sense of what those fees are getting you. While it may be worth the fees, poorly run HOAs can make homeowners feel like they aren’t getting much out of their dues.
🔴 Less decision-making freedom. If you want a chance to landscape, build, or fix things, HOAs may not be for you. Many HOAs include strict rules about what owners can do to their homes.
Some Buyers may not mind that the HOA forbids certain exterior paint colors, for example. However, Buyers must be comfortable with other, more meticulous limits. For instance, HOAs may not allow gardening or hanging flags. They may forbid owners from owning pets or keeping things like boats on their property
🔴 A bad board can ruin the experience. Poorly run HOA boards may skimp on (or outright ignore) repair requests. They may raise HOA fees to cover for financial mismanagement. And unfortunately, sometimes members of HOA boards simply let the power go to their heads.
