Restrictive Rules and What You Need to Know Before Buying a Home with HOA
HOA stands for Home Owners Association, and that’s what it is. It’s an association created of members in a neighborhood with the goal of increasing property values. Most HOA fees that members pay into, go towards maintaining communal areas such as pools and tennis courts. The association also makes rules and enforces them to keep the communal areas and the homes in good shape, therefore, increasing home values for all community members in the HOA.
Is Having A House Or An Investment Property In An HOA Right For You?
HOAs typically begin after a developer creates the neighborhood. The HOA acts as a non-profit and has a leadership team in charge. This is called the HOA Board of Directors.
HOAs are ideal for homeowners who want to be freed of some homeowner obligations and responsibilities. In fact, one in every five Americans have a chance of living in an HOA-governed neighborhood, so it’s safe to say that HOA properties have experienced a surge in the U.S. housing market.
Rules, Rules, Rules
Before you buy a home with an HOA, you’ll want to take a look at the CC&Rs online. This stands for “covenants, conditions, and restrictions.” These are the rules and regulations or “restrictions” of the neighborhood. If you’re an avid gardener, you’ll want to check the CC&Rs to make sure raised gardening beds are allowed. When you read through the rules, think about whether or not you’ll be able to live comfortably under these regulations.
CC&Rs can be found online at the HOA’s website, or by asking the real estate agent before purchasing the home. CCRs can make stipulations about your home and vehicle’s appearance as well as your yard. RV owners should check CC&Rs closely for restrictions regarding the parking of their RV or trailer. People with eclectic taste should pay close attention to the CC&Rs for restrictions on yard ornaments and decorative items as well as paint color restrictions for the home’s exterior.
Before you buy a home with an HOA, make sure you do your homework and ask the association questions that may save you money and headaches in the future.
If you’re like many first-time home buyers, you may be pondering whether a planned development is a good choice for your next home. Most new planned developments have HOAs. The choice may depend on your finances, need for shared amenities, and tolerance for rules.
At Oak City Properties, we have been helping those in the Raleigh area purchase and sell homes for years! Whether you are a family trying to sell your home or a landlord wanting to downsize your rental portfolio, our full-service property management company is here to help.
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