When you are ready to begin looking for a home, one of the things you will have to consider is if you want to live in a neighborhood that has a Home Owners Association (HOA). There are many benefits, as well as restrictions, in a HOA so be sure to read the documents provided to you.
What is a home owners association?
An HOA is created as a non-profit corporation that is established to manage a private, planned community. Similar to other corporations, the home owners association is governed by a board of directors who are elected by members of the association. They create the rules, which are referred to as bylaws. If you purchase a property that has an HOA, you are required to pay monthly HOA fees that will go towards various items of upkeep in that community. The costs can vary from $50/month for a smaller condo to thousands for a larger property. Each HOA determines its own fees.
When you purchase a home that has a home owners association, in order to live in that community, you must abide by their rules and regulations. You could be fined if you break one of their bylaws. Some buyers decided to purchase a home with an HOA because it provides many perks such as lawn care, snow removal, common space upkeep, and maintenance on the exterior of your property. Some HOA’s include electric and trash, while others can include maintaining a community pool, tennis courts, and concierge services.
After going under contract, and receiving the bylaws, you will have approximately 5 days to review them. If you do not agree with the rules and regulations, you may terminate your Agreement of Sale within those 5 days.
Examples of HOA rules:
Pet Policy:
The HOA can decide whether you’re allowed to own a pet, how many pets you may have, and the weight and size of your pet.
Parking Policy:
They will determines how many parking spots each resident receives, and whether or not you can park a work vehicle on the property.
Lawn Maintenance:
Some HOAs will provide lawn care, while others will require you to take care of it, but will have requirements for grass height, etc. They also may require you to get approval for adding any gardens or trees to your property.
Home Improvements:
Many HOAs will require you to get approval to change interior and exterior features on your home.
Do I want a property with a Home Owners Association?
Each client we work with has a different preference on this. Some families are ecstatic about not having to worry about snow removal, lawn maintenance, or exterior building maintenance. However, this does come with a cost: freedom. When you purchase a home that does not have an HOA, you get to make your own choices regarding your property (within township guidelines). For example, if you want to paint your front door blue, you are free to do so. If you have an HOA, you will have to go to the association to get approval before you make any changes. Make sure you read all of the home owners association bylaws so that you can make an informed decision.
We are passionate about what we do and are excited to help you start your home buying, or selling, journey. Contact us today to get started!
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