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To learn more about HOAs and whether or not they're a good thing for homeowners, we reached out to Jason Hanson, a Dallas-Fort Worth based Housing Advisor for Orchard. Orchard has served thousands of homeowners through its brokerage services and online home search tools, and Jason has 10 years of experience working real estate, so he was the perfect person to weigh in on HOAs.
"HOAs can be great if they're run well," he told Bored Panda. "But if they're not, they can end up being a nightmare to deal with. That's why it's so important to research the HOA before buying a home in an association. Look into the board, their finances, and the seller's history with the HOA, for starters, and don't be afraid to ask the seller and neighbors questions."
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When it comes to the pros of having an HOA, Jason says they can be helpful with exterior maintenance, increasing home value, offering amenities, lowering bills and assisting with conflict resolution. "Most HOAs handle a large portion of your home’s exterior upkeep so you don’t have to, like mowing the lawn and landscaping," he explained. "Although, most HOA's don't handle the upkeep of the homes’ exterior, mowing, and landscaping in Texas."
"[Homes with] HOAs sell for an average of 4% more than similar homes outside of HOAs, according to a 2019 UC-Irvine study," Jason added. "Many HOAs offer amenities like swimming pools, tennis courts, golf courses, playgrounds, and gyms in the communities."
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"HOA fees cover different things, but one commonly included cost is utilities, like water and gas," Jason continued. "Sometimes, HOAs resolve conflicts rather than incite them. If your neighbor plays loud music in the middle of the night or they fail to pick up after their dog, who just so happens to love your front lawn, an HOA can step in."
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As far as the downsides of having an HOA go, Jason says some of the most common complaints are about the fees, the risk of lien or foreclosure, the lack of choice, the rules and the potential for mismanagement. "HOA fees (sometimes called HOA dues) are mandatory. The actual cost of these dues can range from $100 to $1,000 a month or more, depending on the services the HOA offers," the expert explained.
"Those who can’t or don’t pay fine assessments or regular HOA fees can face a lien on their property from the HOA and risk losing their home to foreclosure — even if they’re up to date on their mortgage," Jason added.
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"Since HOAs handle so much of the community upkeep, they often have meticulous guidelines for individual homes, like pre-approved exterior paint colors and shutter styles," the real estate expert shared. "HOAs often come with a litany of rules about things like fencing dimensions, how tall your grass can grow, or what fertilizer you're allowed to use."
"HOAs are made up of volunteers in the community. In other words: They’re human," Jason noted. "A good board can be efficient and professional, a bad one can mismanage the community, misspend money, or abuse its power."
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When it comes to what buyers should understand before purchasing a home in an HOA area, Jason says, "Depending on the HOA, owners may have to get approval for even the simplest of things, such as planting shrubs and flowers. For larger improvements such as pools and patio covers, a more extensive approval may be required."
"The HOA board members are typically elected positions, and the HOA holds meetings on a regular basis," he added. "Many homeowners don't go to these meetings or cast a vote for the board members. If you want to make a change for the better, attend meetings and consider running for the board."
If you'd like to gain more insight or guidance before purchasing your next home, be sure to consult the experts at Orchard!
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