Buying a new home is an incredibly exciting time in your life, but there are a lot of factors to consider that you might not have thought about until you are in the thick of the buying process. One thing you might not consider when preparing to buy a home is whether you should buy a home with an HOA.
If you’ve never lived in a community with an HOA, you might not even consider this. However, those who have lived in an HOA community may never consider buying a home without one ever again due to the various benefits associated with one. At Premier Utah Real Estate, we want you to understand what an HOA is and whether you should consider buying a home with an HOA.
If you are on the fence about making the jump to purchase a home with an HOA, continue reading.
What Is An HOA?
An HOA, also known as a Homeowners Association, is an organization in a subdivision, condominium building, or planned community that makes and enforces rules for properties and residents. These associations are run by a board of directors, who are elected by the association members. When you buy a home with an HOA, you become a member of the association and are required to pay dues, also known as HOA fees.
What Does An HOA Offer?
While the idea of paying HOA fees might be offputting, it is important to understand all of the benefits associated with making these regular payments. Many HOA fees cover your trash removal, water and wastewater management, as well as security around your property. This makes an HOA an appealing incentive for individuals who want fewer bills to keep track of every month.
When you pay HOA fees, this money also goes into funding community improvements and amenities. Some additional amenities offered by your HOA may include:
- Pest control and removal
- Parking lot and road maintenance
- Lawn care and landscaping
- Pools and parks
- Community clubhouses and fitness centers
Does An HOA Affect Your Home Value?
When you buy a home with an HOA, an added benefit is the increased value of your home. A study done by Forbes found that homes within an HOA community are valued 4% higher than homes without. This increased value is due, in part, to the consistency offered by an HOA.
Homebuyers may be more interested in buying a home with an HOA if they are looking for less home maintenance and more community amenities. An HOA may also be appealing to families who are looking for a safe community for their children to play and grow.
Is Your HOA Payment Included In Your Mortgage?
If you buy a home with an HOA, you may hope to lump the HOA payment into your mortgage. Unfortunately, your HOA payment is not included in your mortgage payment, so you will need to schedule payment of necessary HOA dues separately.
It is important to note that failure to pay HOA fees may result in penalties and cannot be avoided if you don’t want to pay them. Your HOA may place a lien on your home or have your home foreclosed on. You may be able to talk to your lender about whether they have an option to add your HOA fees to your mortgage payment to avoid this.
Are You A Good Fit For An HOA?
When you consider buying a home with an HOA, it isn’t just important to think about what the HOA brings to this equation. It is also important to consider whether you’re a good fit for an HOA. Moreover, do you want to have to run things past someone before making changes to your home?
Do you want to double-check paint or siding swatches with an HOA member before investing in a home exterior makeover? Do you want someone to tell you when your holiday lights have to come down or what plants you’re allowed to add to your front yard? If that doesn’t sound like something that is appealing to you, an HOA might not be a good fit.
Is An HOA Worth It?
When considering buying a home with an HOA, you may ask yourself whether the fees you pay are worth it. When considering this, it is important to remember that no two HOAs are created equal. You might have a great experience with one HOA and a not-so-great experience with another.
If you truly love the community and the amenities it offers, buying a home with an HOA is absolutely worth the investment. However, if the HOA fees are too high for your budget, the amenities aren’t worthwhile, or the restrictions are too off-putting, you might not want to purchase in the HOA community.
Buy A Home With An HOA With The Help Of Premier Utah Real Estate
Buying a home with an HOA is ultimately a decision you have to make for yourself. But, if you’re struggling to decide whether an HOA community is a good fit for you, you should consider talking to a real estate professional about the benefits and drawbacks. Our team at Premier Utah Real Estate has years of experience selling homes across the Northern Utah area, and we’re confident that we can help you make this decision.
If you are interested in buying a new home in Utah or would like to speak to a member of our team, contact us today.