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So, my husband and I have been looking at houses for a while, and we found a house that we really love. It's not perfect, but being honest we won't be able to find the perfect house in our budget. The biggest downside is that it has a Home Owners Association.
I never liked the idea of an HOA, for a variety of mostly emotional reasons, but that boils down to this is my house that I am spending 200K+ on, I want some freedom.
We thought the house was nice enough to get over the HOA, but the more I think about it the less comfortable I am with an HOA. The fees are equivalent to adding $25,000 to the mortgage ($225,000 house with the HOA is the same per month as a $250,000 house without the HOA, assuming insurance and taxes are the same) and we wouldn't really use the fitness center or pool. Exterior maintenance I can't imagine being frequent enough to justify the fee. ($135 a month, can rise 3% per year)
I am also nervous about the worst case scenario. Special assessments, neighbors with an ax to grind, changing rules. I just feel like we could never be fully comfortable in our own home, always worrying that there will be an unexpected special assessment, or a neighbor may raise a stink over something and cause problems.
We have gotten the by-laws and CC&R, and I read them over (38 pages). Nothing really stood out as a major concern, and they have $400,000 in reserves, but I just can't get over an uneasy feeling.
There are a couple of articles in the CC&R that are loosely defined, such as:
Quote:
No noxious, offensive, or unsightly activity shall be conducted upon any Lot, nor shall anything be done thereon which may be or become an annoyance to the neighborhood, or which shall in any way increase the rate of insurance.
- How is noxious, offensive, or unsightly defined? I am gay, can a homophobic neighbor who finds out file a complaint claiming that my relationship is unsightly? I honestly don't believe this will happen, but as a worst case scenario I fear it will always be in the back of my mind.
There are a few other points of concern, such as a 1 foot easement onto neighboring properties, the association has the right to enter homes for repairs deemed necessary, and a limit of 2 cats or dogs as pets.
This is our first home, and I don't want to give up on this house just because of the HOA, but I don't want to spend that much money on a 30 year contract if I don't feel comfortable with the HOA. This decision would be a no-brainer if there wasn't the HOA, or if we had found a similar/equally nice home without an HOA, but as it is I am just spinning my wheels.
I think a lot depends on where you live and the norms. HOA's aren't common out in my area as they are generally undesirable. Dues like that would be a killer for most people out here. Ask your agent about resale. If that is normal out there it probably won't be an issue but you don't want to be stuck with it either.
I used to live in an HOA neighborhood and when they voted to ban basketball hoops we decided we needed to move.
Buy a house without an HOA.
Your discomfort level with the concept is way too high for you to accept one.
By the way.
If "exterior maintenance" includes painting and roofing, then $135/mo is very reasonable.
Having lived with an HOA, I can say that it is not the rules, but the nice/d_i_c_k_head people who are on the board.
Also, by the way, this "the association has the right to enter homes for repairs deemed necessary" means that you have forfeited your 4th Amendment rights (according to my contracts lawyer).
Most HOA's are pretty laid back and a necessity to keep neighborhood looking good hence resale values intact. You don't want your house value to go down because nobody wants to live next to your neighbor's crappy house. Do you?
Buy a house without an HOA.
Your discomfort level with the concept is way too high for you to accept one.
By the way.
If "exterior maintenance" includes painting and roofing, then $135/mo is very reasonable.
Having lived with an HOA, I can say that it is not the rules, but the nice/d_i_c_k_head people who are on the board.
Does not include roofing.
Includes one coat of exterior paint every five years paid for by the association, landscaping and snow plowing of the front yard, and sidewalk and driveway repairs at 50/50 (owner pays half, association pays half)
It seems pretty common in our area, there are certainly quite a few single family homes we have seen with them.
I think we are going to tell our agent we want to keep looking for other houses, and sort of mull over the idea of an HOA. If after giving it some thought we warm up to the idea and the house is still available we may make an offer, but I don't want to settle and be uncomfortable in my home.
I would not buy a home that was not in an HOA. I've seen way too many where owners do some crazy things.
HOA's help maintain property values. Problem is some HOA's get a little to restrictive but I'd rather they be too much so verses no restricions at all.
Most HOA's are pretty laid back and a necessity to keep neighborhood looking good hence resale values intact. You don't want your house value to go down because nobody wants to live next to your neighbor's crappy house. Do you?
My thoughts are stuck on the worst case scenario.
Without an HOA, worst case scenario is I have a crappy neighbor who drives down property values and I can't resell for as much. I guess, technically, it could drive values down so much that I am underwater and house goes short sale/foreclosure.
With an HOA, worst case scenario is special assessments/rate increases/OR a crappy neighbor making my life a living hell, and the house gets foreclosed on by the HOA.
So basically, with or without, the worst case scenario ends with losing the house because of things beyond our control.
I don't honestly believe there will be any problems with the HOA, I am just so nervous that something could happen. I think it is the damn media hype, all those stories about people planting the wrong color flowers, or building a tree house for their kids, or letting their toddler draw on the driveway with chalk, and the HOA being obnoxious about it. You don't hear stories about neighbors driving down property values as much.
There are lots of HOA's in existence...your sexual preference wont matter at all in as much as the HOA is concerned.
HOA's become a problem when they are poorly managed...IE you have a group of really bored people who like to pick fights...very few people ever bother to show up or vote in HOA meetings, so its quite simple to get a group who wants to make a change to nominate someone, or a group of someones, who are deadset on that change...once elected they govern how they please.
I think most HOA's are fine...I would not worry much about them...just stay involved...I don't think its a reason not to buy a house unless you are one of those people who likes to do "weird" things - like plant strange plants, or pave over your front yard, or park cars in your yard, etc...
HOA's are there to protect everyone from the weirdos who usually have a cultural difference from the rest of us...its these things that they do well...just always be sure to watch for their abuse.
HOA's are there to protect everyone from the weirdos who usually have a cultural difference from the rest of us...its these things that they do well...just always be sure to watch for their abuse.
Yeah, like keep people who are ham ops from enjoying their hobby; keeping the mechanic from working on his own car; and keeps those "unsightly people, who smell funny, and wear head scarves" out of the neighborhood.
I can not fathom why anyone would pay for the privilege of being a renter. Just rent.
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