Joining a Homeowners Association (HOA) is a major consideration when choosing and buying your next home. Some people thrive in HOA homes and neighborhoods, while some people have such negative experiences that they’ll never buy into one again. All these perspectives can be helpful, but ultimately, it’s your decision.
Pros of an HOA
Additional and well-maintained amenities
You pay HOA fees, but those fees often go toward community-accessible amenities. Playgrounds and pools are common amenities available to people who live in HOA communities—clubhouses, golf courses, etc.
A more active community
Most people who buy a home with an HOA are seeking more than just a house; they are looking for a community. They want to be good neighbors and have good neighbors. HOA communities foster a sense of togetherness, often organizing block parties and other community-themed events, making you feel like you’re part of something bigger.
Increased property values
One of the significant financial benefits of an HOA is the regulations they impose on the neighborhood. HOA homes have standards they have to maintain regarding maintenance and appearance. This ‘rising tide raises all ships’ approach to the community’s property value means your neighbors are going to keep each other’s property values high, giving you a sense of security about your investment.
Cons of an HOA
Regular Fees
Buying an HOA home means purchasing a home that will have fees with it for the rest of the time you own it. HOA fees are typically between $200-$300 monthly on top of your mortgage, taxes, and insurance. When you fail to pay these fees, the HOA is able to impose fines, such as late payment fees or interest charges, or, in some cases, may even be able to have your home foreclosed on.
Restrictions
Part of the aim of HOAs is to keep property values up, which means they have to approve of all of the changes you might want to make to your home. This approval process can involve submitting a request, waiting for a decision, and potentially making adjustments to your plans. For instance, if you want to paint your home, there’s a small selection of pre-approved colors. Are you considering an addition? They get the final say on that as well. Even things like which flowers you plant and car maintenance can be frowned upon by the HOA and get you in trouble. Living in an HOA neighborhood means you agree to abide by these restrictions.
Lack of Privacy
It’s part of an HOA’s job to be in your business regarding your home. You’ll be much closer to your neighbors and will be constantly monitored by them to ensure you’re complying with the neighborhood rules.
And when you do buy a house…
Whether you’re buying in an HOA neighborhood or not, when you buy a house, it’s crucial to have legal assistance. In Georgia, it’s required by law that a licensed real estate attorney be present at closing. It’s important to contact them in the right time frame as well. If you’re taking steps to close on your house in the next 30-60 days, that is the ideal time to reach out and choose your Georgia real estate attorney. If this sounds like your time frame, reach out to us with your questions. We’re here to help you feel informed and prepared.