When looking to buy a home, you may look at properties in neighborhoods that have a Homeowners Association (HOA).
Before buying the property, you should know what HOAs do. How much will it cost you in membership fees? What purpose do they serve, and more importantly, do they serve it well?
Defining the unique pros and cons
The Ascent discusses the benefits of joining an HOA. Many HOAs provide protections and additional support and help that makes living a little easier.
However, no two HOA functions in the exact same way. On top of that, what functions as a benefit for one person might actually work as a downside for another. Thus, it is important to draw up a list of the unique pros and cons that your potential HOA may have.
For example, some HOAs may include the cost of landscaping and maintenance of communal spaces like parks in their membership fees. If these are things you value, you may feel more willing to pay for a higher HOA cost if it gets you these benefits.
Does the price fit?
You should always ensure that the price your HOA asks for actually suits the amenities they offer, too. Generally speaking, an HOA membership fee can cost anywhere from $100 to $1000.
The HOA memberships worth multiple hundreds of dollars usually have multiple amenities. They often have bonuses as well, such as clubhouse access.
Finally, make sure you see how the HOA handles the enforcement of its rules. You may want different levels of monitoring, so be sure the HOA in the area is not too strict or loose with its rules and enforcements.