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.
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.