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!
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