Rosalind Evans
In today’s real estate market, buyers face the challenge of navigating record-high costs and a competitive landscape. Amidst these challenges lies another crucial factor for potential homeowners: the homeowners association (HOA). Governing community standards and maintaining shared spaces, HOAs can significantly impact the quality of life and finances of residents. Understanding HOAs is vital, especially considering that 84% of new single-family homes sold last year were part of such associations.
The cost of HOA dues can be substantial, potentially reaching $1,000 monthly. Raelene Schifano, the founder of HOA Fightclub, cautions about the financial implications: “Unless the association members have 51% of the majority voting power, they can’t outvote a budget.” This could see monthly fees escalate rapidly. Clare Trapasso, executive news editor at Realtor.com, emphasizes the diversity of homes affiliated with HOAs, from single-family homes to co-operatives, each with unique ownership structures and implications for potential buyers.
With the increasing prevalence of HOAs, Thomas M. Skiba, CEO of the Community Associations Institute, points to the financial incentives for local governments as a driving force. However, Jaime Moore, a Redfin agent, suggests that those looking to avoid HOAs might consider older homes outside new developments.
For those contemplating a purchase within an HOA, due diligence is key. Prospective buyers should review all pertinent documents, financials, and community engagement, ensuring no unpleasant surprises post-purchase.
While HOAs can offer benefits like maintenance and community amenities, they come with financial and governance considerations that can affect homeowners long-term. It’s critical for buyers to thoroughly vet HOAs, a step that can safeguard against future discord and financial strain. As Skiba advises, asking questions and conducting due diligence are the best strategies for prospective buyers in the HOA landscape.
