TO HOA OR NOT TO HOA IS THE QUESTION PHOENIX REAL ESTATE
The Phoenix real estate market continues to experience low inventory and the price of homes continue to increase. People have a choice to either buy into a HOA or not to at this time. What is an HOA?
HOA- It is a legal entity to maintain common areas and enforce the rules to protect property values. This is the main objective for the HOA is to maintain house values by enforcing rules and regulations so everyone adheres to them. Otherwise, your neighbor will have his car up on cement blocks. That would be an ugly scene while selling your house.
Things can get ugly in a hurry when the HOA board abuses their power. Lawsuits can go on for a few years. I personally live in a HOA. I pay a monthly fee in exchange my front yard and common areas are landscaped to ensure consistency in the neighborhood.
Here are a few tips when considering purchasing a home governed by a HOA Phoenix Real Estate
1. Read the CC&Rs(Covenants, Conditions & Restrictions): This document represents the rules and regulations for the particular neighborhood. Many people purchase a house to only realize after they purchased a house that they have limitations such as no additions to the house or not allowed to put in a swimming pool.
2. Monthly HOA Fees-Find out what these fees cover. Find out who is responsible for items on the property so one can budget correctly. Furthermore, check to see if any large assessments were charged or going to be charged to the home owners for improvements or lawsuits as mentioned above. Also, many HOAs will not allow you to run a business out of your home because it will bother your neighbors.
3. Financials-Review the financials of the HOA board to see where the money is going. Is it being managed correctly or not? Monies are used to neighborhood improvements such as paving the road or trimming the trees every two years.
4. Attend Monthly Meeting-I encourage my home buyers to attend a HOA meeting before they purchase the home. Meet the board members and neighbors to see if it will be a good fit or not. Ask questions when present.
5. Rules Set in Stone-Rules can change as time goes on. Nothing is set in stone when it comes to HOAs.
Phoenix real estate is becoming very popular for many people. We have people from around the world purchasing homes because of the location and what it has to offer. The Real Estate and Beyond Network is here to assist all buyers. We can assist in management, sales and rehab of the property. Please contact us for more information.