Mar 13, 2018
Whats in an HOA?
H.O.A…Three letters that send shivers up many buyers spines. Homeowners Associations are put in place to help insure a standard for a neighborhood to live by and community amenities are paid for and taken care of. They can impose rules on residents and take action if their rules are not followed.Here are four questions to ask before buying property in an HOA:
Can you afford it?
- HOAs are funded by member dues paid monthly, quarterly, or annually. Be sure to ask the seller how much dues are and when they’re assessed so you can factor the cost into your purchase. Also ask how much the initiation fee will be when making your offer. How much of that fee is paid by which party can be negotiated.
Will you follow the rules?
- All members of an association must adhere to a set of rules known as the covenants, conditions, and restrictions (CC&Rs). You should obtain and review a copy of these rules while you are still in option period.These rules regulate many facets of homeownership, such as lawn maintenance, architectural design, and where you can park vehicles.
Will you use the amenities?
- HOA dues are often used to maintain common areas and amenities, such as swimming pools or hike and bike trails. These can be selling points for some buyers, while others may not expect to use them. Even if you don’t swim, these features could add to the property’s future resale value.
Do you work well with others?
- You may be able to get involved in the association by volunteering for a committee or by serving on the board of directors. These can be great ways to lead the association and meet your neighbors.
If you’re looking to buy a new home, talk with your Texas REALTOR® about the pros and cons of living in an HOA to determine if it’s the right decision for you.