Buying a home brings you an endless list of things you need to consider, single story or two, pitched or flat roof, bathtub or shower? An option that seems to be highly debated is whether you should purchase a home with a HOA or no HOA? It can all be a little overwhelming but have no fear Kasen Kolhoss, a Custom Fit Real Estate agent, highlights the benefits of having a HOA and the benefits of not having a HOA. This way you can assess your priorities and go in to your home buying experience sure of what you want in your next home.
To HOA or To Not HOA… That Is The Question!
What Is A HOA?
According to the Ramsey Solutions website, a HOA stands for Homeowners Associations. This is an organization that is comprised of homeowners of the same community. This association’s main purpose is maintaining and ideally increasing the community’s property value.
How Does a HOA Work?
A HOA is built of members who are homeowners within that community. The members aka the homeowners then vote from their neighbors and assemble a board of directors to manage the HOA. The task of the board of directors is to collect the monthly HOA fees from the community, enforce community rules, and maintain and decide on community shared amenities.
Benefits of Having A HOA
Kasen covers in the video that some of the most valuable benefits of having an HOA are that it maintains and encourages increased property value, helps sets standards for your neighborhood, and can be a built in mediator for when there are conflicts with a neighbor. Other benefits are associated with the breakdown of what homeowner’s HOA fees go towards. Taking a look at the list below, all of what the HOA budget covers is a benefit for the entire community, and the maintenance of all the shared amenities ensures that everyone benefits from the services and amenities equally and but area also equally responsible financially.
These fees are also known as “maintenance fees” or “assessment dues”, according to fsresidential.com. The HOA has an annual budget that the board establishes each year. This budget is likely to cover:
- maintenance and repairs
- insurance for common areas
- reserve funds
- professional property management
Benefits of Having No HOA
HOAs are not for everyone. There are many homeowners who are not interested in having to pay an extra fee on top of their mortgage. This fee also doesn’t end when the mortgage is paid off, this continues on for the lifetime of the homeowner in that community and this fee could also increase over time. Not having to worry about that monthly fee to maintain the HOA and the community is the biggest benefit despite the obvious property value perks. Another benefit is complete freedom of the homeowner to do whatever they’d like to their home. This means they can paint their house pink if they wanted to without a HOA telling them that it doesn’t fit in to the approved colors of the community. Lastly, the privacy of not having a HOA is a large benefit for many, having a “nosy neighbor” look at your property front and back to ensure that you are following community rules can seem off-putting, even if its their job.
The choice is yours when buying your home, it all depends on how much freedom and money you’re willing to give up and what your priorities are for your home. Both options have their pros and their cons.
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