What is an HOA?

 

HOA stands for homeowner association. It's a corporation formed by a real estate developer for the purpose of marketing, managing, an selling homes and lots in a residential subdivision. Generally, apartment buildings, condos, and planned unit developments of single-family homes.

 Image result for hoa

 

Pro's to a HOA:

Benefits to homeowners may include:

  • maintenance and management services
  • provision of recreational amenities such as pools and parks
  • insurance coverage
  • enforcement of community appearance standards which may lead to higher property values
  • the opportunity for members to plan development in accordance with community values

 

Con's to a HOA:

Disadvantages to homeowners may include:

  • the financial burden of association fees, punitive fines, and costs of maintaining appearance standards
  • restrictions on property use and personal autonomy
  • the potential for mismanagement by the board, including the possibility of arbitrary or heavy-handed enforcement of rules

 

 

Overall, its up to you to choose whether or not to purchase in a HOA community. As with other decisions in buying a home, just be sure that you are properly informed to make the decision.