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Are You a Home Buyer hesitant about Home Owner Associations?

By
Real Estate Agent

You’re on a quest to purchase a home, for you and your family.  It is not uncommon for certain homebuyers to be reluctant to purchase a home with a Home Owners Association (HOA).   This group of buyers, have often heard frightening stories of overbearing HOA associations, that are overly restrictive in their rules, plagued with lawsuits, or dysfunctional in some way. 

Certainly there are associations with significant issues, and these issues sometimes make folks leery of becoming involved with their problems.  But not all homeowner associations are created equal.  And many times having a Homeowner Association in place can save a boatload of future distress to homeownership.

Let me give you an example.  I worked with clients, Steve and Bonnie, who wished to sell their existing home, and move into a better neighborhood.  What were the issues in their present neighborhood that acted as catalyst for wanting to move?  The neighbor directly across the street had turned their driveway into a parking lot of old non-operating cars. There were 3 of them to be exact.  These old vehicles had flat tires, rusty roofs, and cobwebs and debris accumulating beneath.  There was junk piling up on the front lawn. This problem neighbor was causing significant distress to not only home values on the street, but was also a significant eyesore for the neighbors.  Yet, there was little that could be done, since the cars were not parked on the street.  Calls to code enforcement rendered responses like, “It’s not against the law to have an ugly house!” Bonnie and Steve decided they wanted to move where there would be Homeowner Covenants, Conditions, and Restrictions in place, which would govern exterior maintenance of their new home. 

These CC&Rs can vary significantly from association to association.  It is important for homebuyers to review the covenants and other governing documents prior to purchasing a home in a particular subdivision. 

It is also important to check whether a particular HOA is involved in costly lawsuits which can financially drain the subdivision association.  These actions provide assistance in making a more informed decision about the compatibility to your own lifestyle requirements.

Sometimes homebuyers don’t realize there may be benefits that come with their paid Homeowner Association dues.  What is covered in these dues varies.  For example, some association dues cover fire insurance, exterior maintenance of the grounds, amenities like swimming pools, tennis courts, etc.  It is important to check out what is covered by dues, for any subdivisions you have interest in. 

Steve and Bonnie bought in the Greater Sacramento community of Gold River, which restricts how long you can park your car in the driveway, and they encourage parking vehicles in the garage.  That restriction might have seemed overly burdensome for some, but for Bonnie and Steve, plagued with a neighbor, who had left non-operative rusting vehicles in the driveway for months and months, Gold River was exactly what they had been looking for!

Posted by

Myrl Jeffcoat ActiveRain Signature
  

Comments (25)

Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Myrl

Very informative post on homeowners associations . . . . It's in the best interest of the buyers to research the homeowners association and there bi-laws to understanding what their buying into.

Good luck and success.

Lou Ludwig

Jan 04, 2015 01:34 AM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Myrl, 

I find the HOA's here can be tough but there purpose is too protect the neighborhood. Sometimes these groups get carried away.  

Jan 04, 2015 01:56 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

While an HOA does tend to ensure conformity and consistenty, which can help to protect property values as well, some of them are like living in a police state. They determine what kind of trees you can plant, types of light fixtures you can hang outdoors, and some people find that to be too restrictive.

Gold River is a pleasant place, though. It's like that Monkees' song that I think was written by Mike Nesmith: Pleasant Valley Sunday.

Jan 04, 2015 06:02 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Ed Silva - You're exactly right!  One of the primary reasons renters turn into homebuyers is because they want to own a place they can do as they wish.

Joan Whitebook - You're 100% correct.  It's vitally important to scrutinize all the HOA documents you mention. 

Praful Thakkar - Whether an HOA is of benefit to a particular home buyer or not is so dependent on how they determine the value of having it.  It will vary from buyer to buyer. 

Bob Crane - I do not have an HOA in the subdivision where I live.  For the most part I am content.  However, in neighborhoods where more homes have become rental properties, a little regulation could go a long way in keeping up neighborhoods and values!

Jan 04, 2015 07:11 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

James Dray - It is no secret that some HOAs can have folks running them who are brutal in their enforcement.  I know of one in particular that seems made up of propnazis.

Lou Ludwig - I is very important for prospective buyers to be cautious when investigating and reading through HOA documents, to make certain that subdivision is compatible with what they can live with comfortably. 

Robert (Bob) Gilbert - So true!  There can be benefits, and their can be abuses of control. 

Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents - Ah Gold River.  I remember a friend of mine, who once lived there.  I had given them a really nice bird house as a birthday present.  My friend promptly attached it to the top of one of the fence posts, where it looked adorable for about 4 days. Then came the HOA enforcement, and immediately declared its demise!

Jan 04, 2015 07:19 AM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Myrl, 

I came to say virtually all if not all of the neighborhoods here have HOA's. I have had folks say well I do not want to deal with an HOA and I say you want to live in Katy then you have no choice! 

Jan 05, 2015 06:53 AM
Yolanda Cordova-Gilbert
Richmond, TX

Myrl,

 Here in our area there is very little that does not have an HOA and yes some are exessive but that it is better than the lax ones....here most people would not buy if there was not one!

Jan 05, 2015 07:19 AM
Barbara Altieri
Better Homes and Gardens RE Shore and Country Properties - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

Myrl -- It's so important for the prospective buyer to read and understand the CCRs. Once they are in to the complex, they have to follow the rules.  So nice that your clients are happy with their new home..... and rules.

Jan 05, 2015 10:22 AM
Toni Weidman
Sailwinds Realty - Trinity, FL
20+ Years Selling Homes in New Port Richey, FL

personally, I wouldn't live in a neighborhoodd without them.  But everyone is different and it is something buyers need to take seriously.

Jan 05, 2015 08:50 PM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Myrl Jeffcoat most suburban neighborhoods have HOAs here. It seems if not run by brownshirt-type enforcers things typically get worked out.

Jan 07, 2015 12:29 PM
William Johnson
Retired - La Jolla, CA
Retired

Hi Myrl, Youbare sure right about home owner associations being a mixed bag. Most of North County San Diego are subdivisions with HOA's. I live in one and while most of everything is OK, some of the rules are a bit burdensome. Like paint color choices, landscaping choices, etc. I am burdened with rabbits and red pepper, deer urine ( jeez that stuff stinks to high heaven) has not worked. They have destroyed my grass and I wanted to put in the really nice artifical truf because of water conservation and the rabbits. Not permitted and chewed up grass is not either. I am sick of sodding the ground while the rabbits think it is gourmet dinner. 

Jan 07, 2015 02:24 PM
Roy Kelley
Retired - Gaithersburg, MD

This is good information for prospective home buyers. This month, community home inspections are taking place in our home community. The purpose is to retain an attractive appearance of all of the homes when viewed from public areas.

Jan 07, 2015 11:03 PM
Sharon Paxson
Sharon Paxson, Realtor® EQTY Forbes Global Properties - Newport Beach, CA
Newport Beach Real Estate

Excellent post about home owner associations, and it is important for a home buyer to understand fully what the restrictions are with an HOA.

Jan 08, 2015 01:37 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

I have lived in homes with HOA rules that drove ME crazy and vowed that I would never do so again.

Jan 08, 2015 04:05 AM
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

I am kind of an independent cuss, and having just read a horror story about an association telling the new homeowner to rip out all the grass and plant a special variety, I would be livid.   But, I see where they can also be helpful from time to time, Myrl.

Jan 08, 2015 04:10 AM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Hi Myrl, just stopping by to say hello and I hope all is well with you. You must be busy this new year. 

Jan 08, 2015 04:47 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Hi Myrl,

Great post! Many like your clients Steve and Bonnie they are looking for a community that has an HOA that will be prohibit non-operating rusting vehicles from being left in their neighboring driveways!

Jan 08, 2015 11:17 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Myrl

You raise some excellent points about HOAs. Some people love 'em, some hate them. And they are not all the same. As ELizabeth points out, some can be particularly punitive and restrictive, although that may depend somewhat on who is on the Board.

Anyone buying into an HOA must do their due diligence to understand the culture, the rules and regulations, and the budget. An HOA may be right for some people, as your example illustrates so well, while others will simply refuse to live in one.

Jeff

Jan 08, 2015 01:05 PM
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Myrl Jeffcoat - In some communities you have no choice. I'm thinking of where single family detached homes are just too pricey for your budget. But if I had a choice, no HOAs for me.

Jan 09, 2015 09:30 AM
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Myrl Jeffcoat

I think Home Owners Associations can play a great part on protecting peoples properties and their values

Jan 12, 2015 08:09 AM