Is An HOA Right For You?

Buying a home, especially if you are a first-time home buyer, can be very stressful. It can be even more stressful if you don't hire a buyer's agent, which is a real estate professional you hire to represent your needs and help you find a home.

While a buyer's agent will cost you, they can also save you money by negotiating the price of a home you are interested in, steer you from money pits, and help you navigate the ins and out of the various financing options. They can also explain to you the terms of each Homeowners Association, or HOA, that are in the area you are looking.  While many newer subdivisions have an HOA, this is not an option everyone is well-suited for. Here are the basics you should know before having an agent seek potential homes out in an HOA.

A Homeowner's Association Can Mandate A Lot About Your Home

Most HOAs have rules that govern just about every aspect of living in that neighborhood. This can include things like what colors you are allowed to paint your home, what architectural details you can have, the size, type, and placement of your mailbox, and even what breeds of dogs and which pets are allowed. There's also likely to be rules about how many vehicles you can own and what can be stored in your backyard.

For many people, they crave homeownership so they don't have anyone telling them what they can and cannot do anymore, and an HOA is simply too restrictive. For others, though, they are happy that their neighbors won't be able to paint their house a garish color, turn their yards into a scrap yard, or have a perceived dangerous dog breed running around, all things which can be difficult to deal with as well as lower property values.

A Homeowner's Association Can Be Costly

Most HOAs will add an additional bill to your monthly housing expenses. The more amenities a subdivision offers, the more it's going to cost to maintain it. A gated community with a swimming pool, tennis courts, playground, and a recreation center with a gym costs money for upkeep. Some even take care of the landscaping. If you don't feel you will take advantage of these amenities, an HOA with these conveniences might not be right for you. However, for a family with young, active children, the extra security of a gated community with recreational opportunities may be just what they are looking for.