Buyers Say "No" to HOAs

I agree that HOAs can be run as little tyrants run countries sometimes.  I have seen it before.  And, then, there are others that have much better "forms of government".  My advice is to check with some homeowners in the neighborhood for their take on how the HOA is working or not working.

I wish HOAs were on their way out..they are a costly political action committee with very little interest in helping a homeowner.

My last two buyers refused to look at homes with HOA.   We originally looked at a few homes with HOA, but my buyer commented to a prospective neighbor he would like to re stucco (the house needed some serious stucco repair) the neighbor immediately mentioned the process to get a color accepted by the HOA.   My buyer was horrified.  I live in the land of HOA in Carlsbad and Encinitas so finding a home without HOA for a buyer can be a little tricky.  We did manage but it was challenging.  The very sad part is some of the HOA fees are so high that they are constricting the buyer market in those areas even worse.  So many REO and Short Sales come from HOA communities, as people find that they can afford less, they do not want to lose any amount of their buying power to an overpriced HOA.  Also have you seen the fees they charge when homes do sell?  It is absolutely outrageous!  Hundreds of dollars to get a package of papers and a one page questionnare completed.  You would think they would at least be quick about getting the paperwork back to the lender.  In short sales and REO the buyer is on the hook to pay for both sides!!  Just crazy. 

I personally live in the middle of 8 acres in serenity and peacefulness.  I work with people all day and need that retreat to silence and peace at the end of the day.  To each their own, many people prefer a busy neighborhood.  HOA s that are run by homeowners and not a management company tend to have many of the same problems that Harry Reid and John Boehner are having this week, agreement on who is in charge and the politics.

Hmmm... perhaps I'll be the only opposing opinion on this.  :)  I'm only speaking based upon my experiences in Texas, and every neighborhood I've lived in has had an active HOA.

Yes... I completely agree that some HOA's can be absurdly bureaucratic and seem to yield power for the sake of it. But, I believe that they are indeed necessary. Unfortunately, we just don't live in a world where "everyone" takes the time to consider the impact their actions, or in-actions, may have on their neighbors... particularly in an environment where a large number of homeowners don't even know their own neighbors.

While I do think HOA's can go overboard, I would never live in a neighborhood without one.

I could certainly do without them. To much power can be abused in the wrong hands. I am sure they are great for the people who really require them but for the people who have the choice or not...I say not!

I agree that oversight of HOA's is needed where there isn't any. In Texas, the legislature recently passed many new laws regarding HOA's which take care of most of the major issues.

RE: "When home owners take care of their homes and property because it's in their nature and not because Big Brother is making them do it, home buyers find the neighborhood more desirable."

Yes... it would be ideal if it was in everyone's nature to take care of their properties and respect their neighbors. But I've never personally seen, or lived in a neighborhood where this is the case. People move in and out, lives change, finances change, etc. No neighborhood is immune from people doing some pretty distasteful or irresponsible things which negatively impact their community - most of all, those adjacent to them. Without an HOA, and assuming a neighbor isn't in clear violation of any local ordinances, the affected neighbor/homeowner would have no option but to go to court, which could take years, and cost great sums of money. With an HOA, it can be as simple as a phone call.

YES... there have been (and still are) some that go beyond their original intent. But in general, I think they are vital, and serve their intended purpose. I consider them an asset, not a nuisance, particularly in newer developments.

It always peaks my curiosity when I see arguments against HOA's. Obviously, buyers have a choice. If they do not wish to be forced to mow their yard, or seek approval before painting their home fluorescent orange, then they can choose to buy elsewhere. But, local city/county ordinances exist as well, many of which are much more stringent than HOA restrictions. So, perhaps those same buyers should be concerned about those "laws" as well.