Can you keep your pontoon boat in the driveway in your new neighborhood? Never assume the answer to questions like that before you buy a home in a community with a homeowners' association (HOA). Most people understand that an HOA is an organization that sets community rules and takes care of certain things.
Costs and Benefits Vary Substantially
HOA fees vary widely in what they cost and what they pay for. One suburban community might charge $50 a month for keeping the roads plowed in the winter and taking care of the community playground. Another HOA might charge $900 a month for a wide range of security, maintenance, repair, and entertainment services.
Risk of Foreclosure
If you live in an HOA community, there are serious consequences for not keeping up with the monthly payments. The HOA may have the legal right to seize your home and sell it to get the unpaid fees. The association can also levy fines, and potentially take your home for nonpayment of those fines.
Restrictive Rules Have Costs & Benefits
Putting up with HOA rules can be a hassle. You want to plant some bushes in the front yard, but the association rules don't allow it. On the other hand, the same set of rules require neighbors to take good care of their homes and yards. Those rules help make the community more pleasant. Depending on the community, your fees may also cover nice amenities like a pool, picnic spaces, and paved walking trails. You and your guests would have full use of those amenities without paying out-of-pocket.
The association will regulate a variety of activities on your property. If you want to make improvements to your home's exterior, you may need approval for your choice of color or material. If you want to run a business at home, anything that creates extra noise or traffic might be disallowed by the rules. Other DIY projects, like rebuilding the clutch in your old truck may not be permitted. A real estate firm like J & N Realty, Inc. can help you understand your HOA better.
Before you buy a home in an HOA community be sure you know how much the fees would add to your living expenses, what the HOA does, and how the rules affect you. If you want an above-ground pool and a nice cedar fence around the back yard, be sure the BOA rules allow those things before buying.
