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Here are the five most important questions to ask before buying a home in an HOA Area

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By Heith Mohler
Real Estate Agent at Property Marketers LLC

A Homeowners association governs property located in a gated community. The property may be a condo or townhouse, or single-family home. One of the main reasons to have an HOA is to maintain a clean and monochromatic environment.HOA’s way of running may vary from one HOA to another. When searching for a house, it is necessary to determine if a homeowner association manages the property and how it operates. A buyer of a house can do it himself or through genuine estate brokers and other professionals who are good at what they do. Home buyers must ask questions about an HOA if they are willing to live in a nan area managed by an HOA. Such questions include;

  1. Can the buyer afford the property.

Usually, living in an HOA restricted area is associated with monthly fees to maintain the property, like sweeping the pavements. Costs vary with different HOAs. Thus the buyer needs to check the prices and determine if he can afford the fees. Buyers are advised to practise due diligence by asking about the costs that have been paid over the last ten years or five years. It is essential to do this so buyers can predict the increased fee rate and determine if the current prices are undercharged to attract customers. HOA fees for old houses and complex ones with more units are generally more expensive. In developing estates, the monthly fees may decrease as more buyers flood in, thus cost share. The buyer should also be aware of additional costs to be catered for, such as repairing an elevator and replacing an HVAC system. With all the information gathered, the buyer can tell if the HOA fees meet his budget or whether to look for property elsewhere.

  1. What are the HOA rules

It includes the restrictions, covenants and conditions related to an HOA. The three components are different for different HOAs. Thus the buyers should not assume rules such as how many vehicles can be packed where and the home paint colour. The buyer also checks for pet ownership, whether one can build decks or if one can run a home business. The restriction also covers how high a fence should be or whether one  can have a mailbox. Environmentalists are guided on whether they can plant more trees or cut the present. There is a certain height at which a tree should grow and landscaping, which is detailed in the HOA rules. After finding out the rules, one can tell if the HOA has many restrictions or if he is comfortable with them. . Also, it is necessary to have the limitations and restrictions for people who want to rent a house and determine whether the HOA rules and regulations will attract potential clients.

  1. What are the amenities?

Amenities are checked to determine if they are among the buyers’ needs. They also affect the monthly fees. Amenities may vary from having a simple gate to having a clubhouse. Property located in a community that has many activities has more fees required. Also, when assessing the extras, one checks whether they will fulfil the buyer’s needs. For instance, the buyer checks if the community has a swimming pool and the times people are available, If there are gyms within the area if need be, If there is a shopping mall within the community or if there are public schools within the region. Where is the police post? Is there a hospital nearby? The above are other examples o questions that one should consider.

  1. Conflict management

Sometimes, a disagreement arises between two owners of the property or between an owner and the HOA managers. Buyers should know how the HOA solves conflicts and the repercussions. It is also necessary for the buyer to know the penalties given in such incidences. Buyers can find out the information by asking for records of the initial case and reading through to see how the case was handled. In this stage, one also examines how the HOA manages additions and on what conditions they amend rules.

  1. Insurance cover.

There are areas where insurance offers a cover-up to a Certain Extent. The buyer checks the information to tell what cover to secure. For instance, the HOA has an insurance cover to protect exterior walls in a condo set up while the owner is responsible for fittings inside the house such as the floor tiles, interior paints and blockage. The buyer also should check if the HOA covers catastrophe insurance such as a flood. On the side, a buyer should also check for any additional insurance covered in the HOA.

After knowing more about an HOA, the buyer then decides whether they will acquire property in a given HOA system, whether the buyer is comfortable with the set you [ or whether the buyer gets property elsewhere.

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