The Benefits of an HOA
Written By: Miller and Associates Realty On: 14th April 2014 Under: Uncategorized
When shopping for a home or a condominium, especially in a gated community or beach front complex, the term “HOA” often carries a negative connotation in the minds of buyers. It stands for Home Owner’s Association and they almost always require dues on a Monthly, Quarterly, or Yearly basis. However, as long as you know what to look for and understand their purpose, you’ll find that they are actually a good thing and an asset for consumers and agents alike.
The first thing to be aware of is, of course, the aforementioned fee. Do your homework and check fees for similar properties in the surrounding areas or discuss it with your agent to determine if it “reasonable” for the home or condo you are considering. Also, be sure you double check to ensure that the information on the listing is up to date and accurate in terms of the amount and how often the fee must be paid because both of those factors often change from year to year depending on the factors such as age.
Second, what does the fee include? A certain amount per month might seem high for a given condo until you realize it includes trash, water, maintenance, insurance, amenities and sometimes even things like cable and internet access. Don’t let the number itself frighten you off until you see what you are getting for your money.
Third, realize that the organization is run by residents in the neighborhood or complex and that you will be one of them with attendant voting privileges. Despite the reputation HOAs often have, they are run by people who live right alongside you and they usually have your best interest in mind. The key is that you stay active and up to date on the organization’s activities so that you are not caught off guard or left out when it comes to big decisions. Also, when you sign the paperwork, be sure you are aware of your legal rights.
In short, HOAs aren’t there to intimidate and hassle you and, in fact, they provide many valuable services and neighborhoods with associations usually maintain property value relative to neighborhoods where everything is left up to the individual. As long as you educate yourself, the association’s activities and your involvement should benefit you and the neighborhood as a whole.
