Why Buying A House With A HOA Is Not A Good Idea

Yesterday i mentioned the reasons I felt that buying a house in a neighborhood that had a Homeowners Association was a good thing. Today I am tackling the other side of the coin. What are the negatives to buying a house in a neighborhood with a Homeowners Association. From my perspective sitting on a HOA board for the past three years has shed light on the pros and cons of being in a HOA. Though i prefer it personally; not everyone agrees. Here are some of the reasons I know that families do not move into neighborhoods with a HOA: First, it is mandatory. If you buy that house and there is a HOA chances are it is not voluntary but required that you join whether you are going to use the amenities or not. For some families the option of not having a choice is not appealing to them especially if they do not feel they will gain any benefit from paying the dues. Second, the fees. This I think is the number one reason most people do not like a HOA board and prefer homes without a HOA. You have the monthly, quarterly, or yearly dues to pay to the board for the amenities and maintenance of the common area and any amenities that the neighborhood may have. But, fi you are late with your payment they tend to tack on an exorbitant fee of 18% to your payment. Refuse to pay it and it adds up to a larger amount and keeps growing...The fees associated with the HOA dues and late payments are the number one reason i have heard why families avoid an HOA. In this tough economic times a lot of people lost jobs or took pay cuts and the HOA dues were not a top priority...If the board is not willing to work with you; you could end up with an amount that is double or even triple the dues you pay. Third, and I think the second most common reason why families avoid HOA neighborhoods is restrictions. If I want to put a fence up on my property; I should be able to put up what I want. I worked hard, bought the house maintain my mortgage; who is the HOA to tell me what i can and cannot do to my property. Others are concerned because of their jobs. They may be required to take home a company vehicle to be on call and some HOA's do not allow vehicles with advertisements on them parked overnight in the neighborhood..... This I have found to be especially prevalent among heating and A/C technicians and cable installers as well as plumbers or any trade workers. Fourth, One most people do not realize is that an HOA can take your home in foreclosure for failure to pay the dues. It is becoming more prevalent now than before. But they have the right to foreclose on you for non payment. A lot of people feel that is a little too much power to give an association. Fifth, rental restrictions. This is more common in town homes and condos. But a lot of them have certain restrictions that either allow rentals or do not allow rentals. If they do it usually is a certain percentage of units and that is it. So, if you cannot sell your house and want to rent it out you may not be able to because of the restrictions imposed in your neighborhood by the covenants and restrictions that are being enforced by the HOA. These are some reasons I have found why people do not want to live in a HOA. I imagine there are a few others as well...But for the most part it is about control. The HOA can and does control certain aspects of your house....Whether you are comfortable with that or not is your decision to make...... Dave diCecco Realtor/Broker Coldwell Banker United www.davedicecco.com

Why You Should Consider Buying A Charlotte, NC. Home With A HOA

Being a Realtor in the Charlotte, NC. market there are two vast different home searches out there. Ones that are newer in a subdivision that have an HOA and others that are out a little bit in the country or on the older side that do not have a HOA. Which is better for me? There are pros and cons to being in a HOA community. A lot depends on what you are looking for in that community or area. I live in a community that has an HOA and have been on the board since I moved there three years ago. So, from my perspective as a HOA board member and resident and Realtor i have heard many reasons and seen many things that can make me want to be in a HOA. The positives to me for being in a HOA are many. Some of the common ones that affect the selling and buying of a house are: 1. Community features. Not all HOA's have amenities. Some have pools, playgrounds, walking trails, clubhouse and common areas for residents to congregate or the kids to play. Others have maybe a couple of the items and some just have an entrance way sign and a little common area. i think it is important if you are looking to buy a house to decide if the amenities are important to you as well. I like the fact that I have a playground for the kids to play in and do not have the expense of maintain it. For some people it is having a pool without having to do the work to keep it up..... 2. Upkeep and maintenance. One of the expenses a HOA incurs is the upkeep and maintenance of the common area. A HOA board that takes a little pride in the neighborhood will ensure that the entrance way, common areas and any amenities are well cared for and kept up. This provides for better resale for the sellers and gives pride to the neighborhood. 3. Accountability. An HOA board is supposed to hold the home owners accountable and up to the standards set forth by the guidelines outlined in the covenants and restrictions that the builder put on file with the city when the subdivision was being built. This helps prevent you from having neighbors keep trash in their yard, lawns from being uncut, broken down cars in the driveway or street and anything else that might be an eye sore to you as a neighbor. 4. Uniformity. A lot of covenant and restrictions written by builders call for some type of uniformity when it comes to certain improvements to one's home. For example, in my community if you want to put a fence up it has to be white and vinyl. The design does not matter but the color and material does. it allows us to keep the neighborhood looking clean and uniform. Another is storage sheds or other improvements to a house. Usually you have to submit a request in to have storage shed built. As long as it fits the covenants and restriction guideline you are fine but it keeps someone from building something that a neighbor may find offensive or inappropriate for the neighborhood. The same goes true for TV dishes. Most neighborhoods require that they be in the back of the house or unseen from the road..... These for me are the most common reasons I think an HOA is a good thing when looking at a house. As a seller an HOA can help increase your value by the way it conducts business and as a buyer you can feel assured if the neighborhood maintains a certain look that you feel comfortable it will stay that way...... tomorrow I will address the reasons I think and HOA can be a bad thing for some people. Dave diCecco Realtor/Broker Coldwell Banker United www.davedicecco.com