When it comes to buying a home, there are several factors that prospective home buyers should consider before signing on the dotted line. One of these considerations is a Home Owner Association (HOA). The HOA is responsible for maintaining and managing certain aspects of the neighborhood, and they come with certain rules and regulations that you need to be aware of. Below we have listed five important things to know about an HOA before buying a home:
Fees and dues
1. Fees and dues. An HOA generally requires all members to pay fees and dues, which can be used for various expenses such as landscaping, snow removal, roads or streetlights, or other community-wide projects. Before you buy a home in an HOA-governed neighborhood, make sure that you understand precisely what you’re responsible for paying.
Rules and regulations
- Rules and regulations. An HOA typically has rules and regulations that must be followed. These can range from restrictions on the kinds of exterior modifications homeowners are allowed to make to their property (for example, what kind of fence is allowed), to pet policies and parking policies. Make sure that you understand and are comfortable with the restrictions in place before signing on to a home purchase.
Enforcement of rules
- Enforcement of rules. Not abiding by the rules set out by an HOA can result in fines or other penalties, so it’s important to understand how strictly rules are enforced as well as what kind of punishments are considered for violations. Talk to current homeowners in the neighborhood to get a better idea of how closely regulations are monitored and enforced.
Accounting practices
- Accounting practices. HOAs must keep thorough records of their financial transactions, including dues collected from members and expenses paid out from these funds. Ask for copies of recent financial reports, which will help give you an indication of how responsible and transparent the HOA is with its finances.
Representatives of the HOA
- Representatives of the HOA. The board, or representatives from the HOA, act as liaisons between homeowners and the association itself, so it’s important to understand who these people are and what their responsibilities are within the organization. Knowing the current board members will also give you a better idea of how involved they are in day-to-day operations, which can be helpful when deciding whether or not to buy a home in an HOA neighborhood.
Final Thoughts
Understanding key details about an HOA before buying a home can help ensure that you’re making an informed decision that is right for your needs and preferences. Researching these factors thoroughly ahead of time will let you know what to expect, and can help you make an informed decision that is right for you.
You may also want to find out if the HOA has any committees or programs in place that benefit homeowners, such as social events or recreational activities. Knowing what opportunities exist within your neighborhood can be a helpful tool when deciding how invested you’d like to be in the community after you move in. Finally, try to get a sense of what kind of relationship exists between current members and the board of directors – this will let you know how much support and guidance is available if issues arise down the road.
With these five key points in mind, prospective home buyers should have a better understanding of an HOA and what to expect from living in a neighborhood governed by one. Doing your research ahead of time can help you make an informed decision about whether or not an HOA-governed neighborhood is right for you. The research can help you prevent buying a home that comes with a headache you might truly regret, or help you to feel certain that the home you have decided to purchase is indeed the right place for you.
