Everyone’s heard the horror stories about HOAs. I even lived through one when I was a kid:
My parents were fined because we had a tear in the net for our basketball hoop!
People love to complain about HOAs for the inane cosmetic requirements, and HOAs are equally criticized for failing to promote economic and cultural diversity.
But when they’re done well, HOAs can actually be terrific. And if you know how to evaluate HOAs, you can find the right one for you and your lifestyle.
Table of Contents
4 Benefits of HOAs
3 Tips for Picking HOAs
Final Thoughts on HOAs
Get Support Finding Your Next Home
4 Benefits of HOAs
Yes, many people have mixed feelings (at best) about HOAs, but here are some of the tangible benefits you get from a well-run HOA:
1. HOAs Increase & Maintain Home Values
On average, HOAs increase home values by 4% compared to similar homes outside of an HOA. It makes sense: Homes inside an HOA generally maintain rigorous curb appeal requirements, and that same attention-to-detail often extends to indoor maintenance.
When a home is better cared for, its property value remains stronger.
And a 4% increase can be substantial. If you were to sell your home for $300,000, an extra 4% would equal $12,000!
2. HOAs Increase Safety
Many of the classic HOA complaints are, at their core, potential safety issues.
Grass that’s too long becomes a fire hazard. A crack in the sidewalk becomes a tripping hazard. A hole in a roof becomes a hazard to tenants.
All of these issues are generally monitored and enforced by the larger municipality, but the standards are much lower—and they’re often not investigated until someone complains.
An HOA is generally much more proactive, and that proactivity has the side effect of building safer communities.
3. HOAs Force You to Budget for Repairs (In Some Scenarios)
We always tell homebuyers the same thing: The general advice is to save 1%-2% of your home price every year for repairs and maintenance.
So, if you pay $200,000 for your home, you should expect to pay around $2,000-$4,000 in repairs and maintenance each year (about $167–$234 per month).
But we’re also realistic; we know few homeowners actually save on a consistent basis.
Some HOAs, like those in condo units, force you to save for repairs on shared resources. Your monthly fees are set aside each month for communal repairs.
In some cases, this can actually save you money. In some HOAs, where commercial water heaters and boilers are a shared resource, for example, paying as a group can save you money versus paying by yourself.
Related Reading: Pittsburgh Storm Safety and Preparation
4. HOAs Offer Shared Resources
As we mentioned above, your HOA fees commonly pay for shared resources you might otherwise never enjoy.
That could include:
Professional lawn care
Walking trails
Playground
Shared community spaces
In some ways, you could think of your HOA fees as a subscription to additional resources and real estate near your home.
3 Tips for Picking HOAs
Here’s what I always say: There’s nothing wrong with an HOA as long as you’re getting value from it.
And here’s how to make sure you get plenty of value:
1. Know What You’re Getting Into
If a home comes with an HOA, be sure to read the rules before making an offer.
The rules and requirements could interfere with how you envision living at your home—or with customizing it in a way you see fit.
2. Know Your Priorities
Some HOAs charge mandatory fees for things you might never care about, like a 24-hour doorman or an on-site gym.
You can’t escape these payments even if you don’t want the benefits.
On the flip side, you can also look for HOAs that do cover the things you don’t want to worry about, like someone to manage simple handyman jobs or mow the lawn.
3. Know How Much Freedom You Want
Ultimately, an HOA is a trade-off. You sacrifice some of your finances and some of your liberties as a homeowner, and in return, you receive communal resources and boosted home values.
But if you’ve always dreamed of having a bright pink front door or love spending the weekend fixing up your classic car in the driveway, an HOA probably isn’t a good fit for you.
Final Thoughts on HOAs
Final Thoughts on HOAs
We’ve always believed that great things can happen when people come together.
That’s why we’ve been so passionate about building our community in Swissvale and highlighting fellow business owners in Pittsburgh.
People can do wonderful things. And as long as an HOA has the right leadership and proper resources, it can do wonderful things for homeowners like you.
Related Reading: Making the Most of Your Neighborhood: How to Inspire Community Involvement
Get Support Finding Your Next Home
If you’re looking for your next home, contact us!
We can guide you through the buying process to find the perfect home for you, your family, and your lifestyle—regardless of whether or not you want an HOA.
Cheers,
J&T