What to Expect When Buying a Home in an HOA
You have found the perfect home located in an HOA for your family- the exact size, location, and the sense of neighborhood that meets your family’s needs. With the purchase of this home, you will enjoy the luxury of (possibly) not having to mow your lawn, shovel snow, and having access to a hot tub year-round. If you’re looking at property in such a community, you’ll need to factor HOA fees into your budget. There are additional costs for these services and understanding what the assessments cover is key. Just as each home is different, so are homeowner's associations. Each association has its own unique rules and policies, so it’s important that you read your community’s Covenants, Conditions and Restrictions (CC&Rs) and bylaws to find out the specifics. To get an idea of what your HOA fees cover and how they protect your property values – see this overview below:
Depending on your community, HOA assessments may include the following types of services:
• Lawn care and landscaping
• Snow removal
• Water, plumbing and sewage systems
• Electric system and lighting
• Trash removal
• Security system and gates
• Cleaning, painting and upkeep of exteriors and common areas, such as hallway walls, carpeting, clubhouse, etc.
• Pest control
• Repairs of roofs, interior roads, pipes, etc. due to age, weather conditions or other damage
• Maintenance of shared amenities, such as pool, fitness equipment, clubhouse, etc.
• Administration & Insurance for the community
While your Association collects enough money to maintain the shared areas of your property, it also plans for major repairs that don't happen every year. A portion of your assessments go into a long-term reserve account that builds up money for replacement of these common elements, like replacing every roof or pavement on community roads.
Setting homeowner's association assessments isn't an exact science. Your Association Board of Directors sets its assessments for the year based on their best estimates of the year’s expenses, typically based on previous year’s history. One last thought when buying in a community with an HOA is that, HOA assessments may increase each year as the cost of services go up, and all services to an Association come at a cost.
Depending on your community, HOA assessments may include the following types of services:
• Lawn care and landscaping
• Snow removal
• Water, plumbing and sewage systems
• Electric system and lighting
• Trash removal
• Security system and gates
• Cleaning, painting and upkeep of exteriors and common areas, such as hallway walls, carpeting, clubhouse, etc.
• Pest control
• Repairs of roofs, interior roads, pipes, etc. due to age, weather conditions or other damage
• Maintenance of shared amenities, such as pool, fitness equipment, clubhouse, etc.
• Administration & Insurance for the community
While your Association collects enough money to maintain the shared areas of your property, it also plans for major repairs that don't happen every year. A portion of your assessments go into a long-term reserve account that builds up money for replacement of these common elements, like replacing every roof or pavement on community roads.
Setting homeowner's association assessments isn't an exact science. Your Association Board of Directors sets its assessments for the year based on their best estimates of the year’s expenses, typically based on previous year’s history. One last thought when buying in a community with an HOA is that, HOA assessments may increase each year as the cost of services go up, and all services to an Association come at a cost.
