What is a homeowners association?
An HOA is an organization in a residential community that creates and enforces rules for all properties in the development. HOAs can be associated with condominiums, town houses or could be a single-family home community or private neighborhood. HOAs are very common among Irvine homes for sale and other communities in South Orange County. HOA rules can govern everything from parking restrictions and storage usage to architectural and design guidelines.
HOA fees on average range from $200 – $400 a month.
What do HOA dues pay for?
The homeowners association collects monthly or annual dues which pay for community areas and amenities like parks, sport courts, swimming pools and street signs. Keep in mind that every homeowners association is different. Some are voluntary but most are mandatory and some are picky about what the members do with their properties while others are more laid back.
Pros and Cons of HOAs
Pros:
- The homeowners association pays for common areas like swimming pools, sport courts, parks and clubhouses. That means you get to enjoy a pool without having to clean it and keep an eye on chlorine levels and enjoy a semi private playground or garden without the hassle of maintenance.
- Some HOAs offer services like lawn maintenance to keep the neighborhood looking good 24/7. You don’t have to hire someone yourself and your home always looks pristine.
- Homes within HOA communities typically maintain their value well or appreciate over time. By regulating the appearance of things your curb appeal and home price rises.
- Often HOAs promote a strong sense of community. Friends can gather at the clubhouse or common areas, people get to know their neighbors, etc.
- Issues with neighbors like unwanted cars parked in front of your house are handled by the association, taking the pressure (and responsibility) off of you.
Cons:
- The price of your perfectly manicured lawns could be losing the freedom to choose your holiday decorations or the color of your house.
- Homeowner may encounter restrictions if they want to rent out their property. The association may require potential rents to be screened and approved by the HOA board, how much you charge for rent could be regulated, etc.
- The extra expense of monthly dues may more than some homeowners can afford.
- Some HOAs are poorly managed by board members who don’t have enough time to devote to the community. Others too might be managed by a third party company which can feel like giving up control of your neighborhood.
Do your homework before you buy
It is important to factor in HOA dues into your monthly mortgage costs if you decide to buy a home within one of these communities. For example you could buy a single-family home in Garden Grove for $350,000 or a condo in Irvine for the same price however you would be spending significantly more every month for the condo in Irvine because of the added HOA dues every month.
And most importantly get a copy of the rules, regulations and guidelines before you sign a purchase agreement on a home within an HOA community. Find out what the association is like, if you can live with the rules and whether or not the home is worth the price considering dues.