FSBO Jane

As I said in this earlier post, HOAs can make or break the sale of a condo or a townhouse. Here’s why:

1. Expense

• Scenario 1: You find your dream home in a small town, outside the big city, but close enough to travel to the city center for some excitement. There is no HOA fee, and the home is selling for $800,000.
• Scenario 2: You discover a similar house, nestled just a few blocks from home #1, inside an even quieter subdivision, and it is $750,000! If both homes are alike, it would make sense to buy the cheaper one, right? Wrong! This house is situated in a charming community that is governed by a homeowners’ association.
• End result: Although the second home is selling at a cheaper price, you may have to pay HOA fees for lawn maintenance and use of the amenities (clubhouse, pool, sports fields, etc.). The fee is usually a fixed amount, between $150 and $600 per month. So you will end up paying more for the cheaper house in the long run. But think of the benefits: a mowed lawn, use of a swimming pool, access to workout facilities and outdoor fitness areas, etc.

2. Rules & Regulations

Homeowners’ associations tend to have a lot of rules and regulations. And while most of them are common sense, new residents might forget one or two when they are new to the neighborhood, especially if they have never belonged to one before. If that’s the case, new residents may be warned for breaking a rule, but most are usually fined. Sometimes, buyers may not want to purchase a house that belongs to an HOA, because they don’t want the hassle of remember all the guidelines.

Some rules may include but are not limited to the following:

• Parking: If the condo complexes or townhomes do not have garages, parking spaces are sometimes assigned to residents. This may be included in the HOA fee or it may be a separate fee. Overnight street parking is sometimes not allowed for safety reasons. Parking on grassy, landscaped areas is usually prohibited.
• Pets: Some HOAs forbid pets. Others allow small animals such as rabbits, hamsters or gerbils. If you own any type of animal, be sure to consult the association before purchasing a condo/townhome.
• Outdoor items/furniture: Grills, gardening tools, trash cans and patio furniture should typically be placed at the back of the home on a deck or patio. Some associations require that the furniture be a neutral color, especially if your yard is visible to the entire community. Furniture is also to be removed during stormy weather to prevent damage to the home’s exterior.
• Holiday decorations: See this post.
• Exterior Lighting: Most lighting outside the home usually boasts clear, white or yellow bulbs. The only exception is for holiday decorations.

While I believe HOAs are beneficial, you should only choose to live in a community governed by an association if you can afford it and if you can adhere to the guidelines. There are a lot of pros and cons to weigh, so the important thing is to get all the information ahead of time so you can make the best decision for you.