What is an HOA and why do I need to know about them?
HOA stands for Homeowner Association and it’s an organization formed in subdivisions and communities, to help maintain a clean and cohesive atmosphere in the neighborhood. When you purchase you automatically become a member and pay fees to help cover the upkeep of common areas, shared structures, and exteriors. Membership also binds you to the association’s covenants, conditions, and restrictions.
While the HOA will at times spare homeowners from some responsibilities they can also come with some homeowner obligations. HOA’s very widely on the types of things they cover, control, and their strictness.
What are the advantages of an HOA? One of the best things is curb appeal. An appealing appearance and lack of clutter contribute to the overall quality of life for residents. The restrictions are set up to protect you from a weird neighbor trying their best to single-handedly bring down your property values with their two-foot high grass, mailbox falling over, and multiple junk cars parked in the drive. An HOA will have rules and restrictions that will contribute greatly to the community’s overall beautification.
Some communities provide safety in the form of gates or security guards. There might be a pool or a community center with a gym or a playground for the kids. Some communities focus on retirees and their needs. Others may be built around a golf course. A well-run homeowners association is a blessing. In fact, research shows that being a member of an HOA can increase the value of your property by 4.2%. That’s a lot!
Is life in an HOA a good option for you? The answer to that question depends not only on your finances but your enthusiasm for shared amenities, tolerance for rules and regulations, and comfort with self-government—since most HOAs are overseen by volunteers who live in the development. It’s a good idea to review the most recent copies of the Bi-Laws, treasurer’s reports and meeting minutes prior to purchasing or before your inspection contingency period is over. We hope you found this information valuable and always make it a great home buying and selling day!
We're April and Jean and we love helping people get into a home that fits their lifestyle. We call it "Right-Sizing", whether that is moving up to a bigger home or downsizing into something smaller. Let us know how we can help you make your real estate dreams come true.
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Grand Rapids, MI 49512
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