When you buy into a residential community, you’ll quickly realize that you’re governed by a homeowners association, otherwise known as HOAs.
But what is a homeowners association and what does it do for you? Before you invest in a residential community, here’s everything you need to know about its rules and benefits.
What is a HOA?
A HOA is a type of governing force throughout a residential community. It’s estimated that Americans will have a one in five chance of living in an HOA-governed community. These associations govern single-family homes, townhouses, condos, and more. It’s almost like an apartment community where shared amenities are maintained, but you own your home within the community. HOAs exist to enforce the rules and quality of the community, including:
- Architectural guidelines and specifications
- Shared community areas and amenities
- Allowing or prohibiting activities and events
- Improving developments within the community
This means that the HOA will charge you fees in order to live in this location. When you become a member of this community, you will also have to adhere to the community’s covenants, conditions, and restrictions, also known as CCandRs. This can range from the appearance of your home to the activities you perform. In essence, it means that your HOA can have a huge impact on the way you live, governing such actions as installing a swimming pool in your backyard or as painting your front door a fun color. This is to maintain the look of the overall community for the benefit of everyone. These will differ depending on which community you’re interested in living.
What you should know about fees
HOA fees are subject to change depending on where you live. For example, a suburban townhouse in the midwest may cost you a couple hundred dollars. Meanwhile, a condo in New York City might crest $500 or more.
These fees are also influenced by the square footage of your home, the numerous amenities throughout the community, and general market trends. Ask your community association management team for a financial report to get a better idea of the fees needed, including increases.
Buying a home that’s governed by homeowner association management is a great choice for many new homeowners. For more information on real estate services and HOA facts, rely on Pioneer Real Estate today.