What In the World Is an HOA?
If you are currently in the market for a new home it is likely that if you haven't already you will eventually hear the term HOA. What does HOA stand for you may ask? HOA stands for Home Owners Association. Many neighborhoods have a Home Owners Association these days but not all neighborhoods do. Let's take a closer look at what an HOA is all about and what exactly the fees associated with an HOA actually cover.
- Home Owners Associations were created to keep neighborhoods on the up and up so to speak. They will keep your neighbor for instance from painting their house hot pink or putting up an 8 foot tall fence. HOA's will also keep your neighbors yards looking nice and manicured as many of them have strict rules about keeping the grass cut short.
- You can expect to pay as much as $400 per month for a Home Owners Association fee. This price will vary of course depending on how expensive the homes are in the neighborhood in which you choose to live.
- Many times neighborhoods that have HOA fees will also have things for your enjoyment such as clubhouses and swimming pools for all to use. Some may even have tennis courts and walking trails for you and your neighbors to enjoy. If these types of things are important to you then you most likely won't mind paying an HOA fee each month.
- You can choose to take part in monthly Home Owners Association meetings or you can choose not to. Regardless of whether or not you are active in meetings, you will still have to pay your monthly HOA fees so don't be confused by that.
- As a new homeowner you need to be well informed about all the rules and regulations as well as the costs associated with your homes owners association. By staying in the loop you will know what to expect each month.
- Before buying your new home in a neighborhood that has an HOA, make sure that your new monthly payment as well as your HOA fees fit into your budget.
As long as you go into an HOA well informed you shouldn't have any issues arise as a result of buying a home in an HOA community and you will be more able to enjoy all that an HOA has to offer!
Courtesy of Huntsville AL Real Estate Expert Mike Manosky.