When you’re buying a home, it’s important to get to know the community you’re moving into to see how it supports your values, lifestyle, and needs. Many residential communities have a homeowner’s association or HOA. Here’s a guide from our cash property buyers in Dallas to what you need to know before you buy a property in an HOA. PS: We can also sell your home in 24 hours!
What is a homeowner’s association?
An HOA is a self-governed organization where homeowners in the area pay fees to maintain the neighborhood. They are usually run by the residents with a board of directors who oversee the management of the HOA. Typically, the HOA ensures there is a level of insurance, maintenance of grounds and shared structures, and management of communal utilities. They usually also set bylaws that set out their responsibilities and the responsibilities of homeowners. The rules, known as covenants, conditions, and restrictions (CC&Rs) differ from HOA to HOA, and some may restrict noise hours, neighborhood activities, the appearance of your home and yard, and even the vehicles you can park outside your property.
Common HOA fees and costs
When you buy a property in an HOA, you are liable for paying the fees associated with it, so it’s important to factor this into your budget. Fees can range very widely – from $50 all the way up to $2,500 per month – usually according to the amenities the neighborhood offers. The fees usually cover a minimum of:
- Security measures
- Trash collection
- Parking
- Landscaping and maintenance
- Pest control
- Common areas (swimming pools, parks, gyms, etc.)
It’s also important to factor in special costs, as the HOA has the power to levy one-time special fees for work that is not covered by fees or insurance. For example, an additional amount may be levied for a set amount of time to repair storm damage, deal with an unanticipated issue, or rebuilding a common structure. As a result, it is essential to know what exactly is covered by your fees and insurance and what isn’t, and any upcoming projects that the community is considering.
Pros and cons of homeowner’s associations
So, should you consider moving into an area with an HOA?
Benefits:
- Increased property value
- Access to exclusive amenities
- Communal insurance
- Community events
- Access to neighbors for solving community issues
Drawbacks
- An HOA is only as good as the people managing and overseeing it
- They can have a lot of power over your home – What pets you have, what you grow in your yard, color schemes, etc.
- You are liable for the fees each month, making homeownership more expensive
- They can levy fines, a lien, or penalties if you don’t comply with rules
Do your research!
If you are considering buying a house in an area with an HOA, it’s essential that you do lots of research. Chat to the neighbors about the performance of the HOA, meet members of the HOA, and read their bylaws thoroughly to make sure they are suited to your lifestyle. Have your lawyer look through their financial management documents too to make sure it is being responsibly managed and to get an idea of how the fees are spent and upcoming projects. It’s even a good idea to check Facebook, Yelp and Nextdoor for reviews of your potential new HOA!
Want to sell your home quickly and affordably? Here’s how our Dallas real estate specialists can help
Want to get more for your home when you sell? At Shiny Key Properties, we purchase property in any condition, at any time of year, from well-kept family homes to teardowns. If you want to sell your home as is without having to look for a buyer, deal with a real estate agent and pay their commission, or even empty the property, then the best option is to sell directly to our cash property buyers in Dallas.
We can sell your property in 24 hours, putting a lump sum into your account in just a few days. Here’s how our process works:
- You enter your information on our website. We’ll contact you directly to discuss an offer for your property (you can also get a free property evaluation from our website)
- You can accept or reject the FREE NO-OBLIGATION offer
- Cash will be deposited into your bank account – with no real estate agent fees
- We can handle all aspects of the process, including clearing out the property
- You can also call us directly on 469-858-008
That’s all there is to it!
You can also download our FREE eBook for more information on how to sell your property in 24 hours.
Our team is compassionate and highly motivated to offer you the best possible market-related price for your home, so you can sell your property in 24 hours. Not only does this cash go straight into your bank account as soon as the sale goes through, but you also pay zero real estate agent commission.
At Shiny Key Properties, our trained consultants have years of experience in assisting local and out-of-state property owners to sell their property as is. To get an offer from cash property buyers, please contact us today and speak to one of our Dallas real estate specialists.