If you are getting ready to list or buy a home, you might start noticing that the Real Estate industry likes their abbreviations. You start hearing things like FSBO, HOA, COMPS, etc. Some of you may know what these mean, but for a first time home-buyer, maybe not and that is ok. Today, I would like to explain HOA.
WHAT DOES IT STAND FOR?
Home Owners Association
WHAT IS A HOME OWNER'S ASSOCIATION
It is an organization in a subdivision that makes and enforces rules for the properties and their residents.
WHY WOULD I WANT TO LIVE IN A SUBDIVISION WITH AN HOA?
HOA's are there to set and enforce rules and there is usually a small fee that homeowners have to pay either monthly or yearly, but it definitely includes its perks. For example, many HOA's offer services like lawn care, snow removal, trash service, a community center and a pool. It can take a lot of maintenance out of being a homeowner and at a much lower cost.
WHAT KIND OF RULES DO THEY ENFORCE?
This is dependent on each subdivision, but some common rules that would be enforced would include things such as keeping your yard tidy, preventing outrageous paint jobs/home renovations that may not be appealing to the neighbors, and they sometimes offer security in gated communities, so you don't have to worry about solicitors coming to your home.
HERE IS AN EXAMPLE FOR YOU...
This home is in a subdivision that protects it's residents space. It is required that any lot in the subdivision is a minimum of 5 acres. Say a builder wanted to purchase land and start developing the subdivision. They would not be able to build right next to you because of the protection the HOA provides. The HOA has a developed online community that keeps residents in touch and informed. It also allows a certain amount of horses dependent on the acreage of the lot.
Living in a neighborhood with an HOA can also prevent hazards when it comes time to sell your home. You don't have to worry about your neighbor's yard looking a mess and scaring buyers away.
If you have any questions about buying a home that has a Home Owner's Association, please don't hesitate to contact me.