Often I work with buyers who have strong feelings about buying a home that is in an HOA. Here are some things to think about when you do. First off, What does HOA stand for? Home Owner Association.
Pros:
1. Living in an HOA makes life simpler in some aspects. You can come and go without anyone knowing that you have. Also, there are times that you might decide to leave on vacation, or be gone for an extended period. Usually things look pretty much the same if you are there or not. Grass is usually mowed, Snow is shoveled.
2. The cost for doing the things that the HOA does is usually at market. You may find in some cases that all the benefits actually are provided for at or below what it would cost you to hire those things done yourself.
3. Usually the HOA will help maintain a look and feel that helps your property to keep and grow it’s value.
4. You are a voting member of the HOA. As such, you attend a meeting usually once a year to review the books and decide if certain expenditures make sense, or if they could be reduced by contracting with another provider.
Cons:
1. You don’t have a choice to stop making the HOA payments. If you come upon hard times with a stand alone dwelling, you may decide to stop hiring a groundskeeper or shovel the snow yourself and save a little money. With an HOA those expenses will be charged regardless.
2. You don’t have as much say about the rules that are there. Although you can vote and proposes changes to improve the HOA, unless there is buy-in you will have to follow the rules. (usually they are meant to help maintain values)
HOAs are becoming more and more common. If you are buying a new home, there is a good chance you’ll be buying one in an HOA.
Let me know your experience. Do you think HOAs are good or bad? What else could be added to these thoughts?