HOA’s (Home Owners Associations) impact us all.  If you live in a neighborhood with one you are affected and if you are looking for a house to buy and the home you like is in an HOA you are affected.  What are the pros and cons of HOA’s?  Lets first cover some cons.

Cons:

1. They cost you money. If you are a buyer and looking to buy a home in a neighborhood with an HOA that cost per month will affect your ability to qualify for a loan. What you get for the amount that it costs you may or may not be important to you. Make sure you know what you get for that monthly cost.
2. They may affect your ability to use the home and the property in the manner in which you wanted to use it. For example, you may have wanted to park your new boat in your driveway.  The HOA may not let you.  Or perhaps you have three, large dogs…the HOA may limit the number of animals and the size of animals that you are allowed to have.

Pros:

1. When you live in an HOA the homes there maintain a more uniform and overall nicer look. Some would say that they maintain a higher property value because of this. You do not have to worry about your neighbor painting their home bright pink and you have to live with it.
2. Depending on the services that are provided by the HOA, you may not have to maintain the exterior of your home. You also may not have to shovel snow or maintain your yard. Doesn’t that sound nice?
3. You may also have your hazard insurance covered by the HOA. If that is the case you can be saving money on insurance only having to pay to insure personal belongings and the interior.  If you were to think a total loss, insurance would pay for appliances, cabinets etc.

HOA’s provide services and keep the neighborhood consistent and have some control over how you live and use your property.  Some people are OK with that, others are not.  HOA’s do cost you money.  Make sure that you understand the services that are offered and what they cost before you consider a home in an HOA. As always Contact Us with any questions you may have.