An HOA, or Homeowner's Association, can be very appealing to buyers. It can be the perfect way to have control over the appearance of your neighborhood as well as the look of your common areas.

Many HOA's offer neighborhood activities (dances, mixers, etc), pools, gyms, walking trails, tennis courts, and of course beautiful landscaping.

Before you purchase a home that is located within an HOA, however, it's important that you ask questions and do your research. Not all HOAs are created equal. Some may be more lax on enforcing rules, others may have a history of poor management, and still others may be financially irresponsible.

This last issue should be a key point that you discuss with the HOA board or your real estate agent. You want an HOA that does periodic reserve studies and has plenty of money on hand for major repairs, such as refinishing a swimming pool, adding a roof to a common building, and repairing sidewalks and parks.

If an HOA runs short, meaning they haven't been charging the correct amount each month to homeowners in anticipation of these cost, they may need to do a special assessment and charge each owner a one time fee which can be quite steep.

Next, find out about your dues. HOA charge either monthly, quarterly, or yearly dues that help pay for reserve studies, upkeep common areas, and handle any legal or legislative fees. You'll need to be sure you anticipate this cost. For condo units, this monthly fee can be hundreds if not thousands of dollars. That cost is on top of your monthly mortgage and bills and you must pay it.

Discuss the CC&R's with your real estate agent. This stands for Covenants, Conditions & Restrictions. Many HOA's don't allow certain improvements that you might want to make in the future. You might not be able to remove shrubs or trees without permission, build detached buildings, or install a swimming pool.

Find out what all you will get with this HOA. Are there certain special services like trash pick-up that they'll take care of? Do the benefits outweigh the costs?

An HOA can be a wonderful thing. It can foster community togetherness through common areas and activities. You can actually get to know your neighbors! It can help keep your neighborhood looking trim and neat for years, if not decades, to come. Just be sure to check out the ins and outs and dollars and cents of your prospective HOA before signing on the dotted line. Not all HOAs are equal and you want to find the best fitting HOA for you!

Published: January 26, 2012

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Carla Hill, M.A., works on the Realty Times staff as Managing Editor for our online publication. She also is Producer for the real estate news channel, seen daily on RealtyTimes.com and on video newsletters nationwide.