What are the Pros and Cons of living in a Neighborhood with an HOA?

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

 

 

Some Buyers do not care whether they are in an HOA governed community or not, and others specifically ask for one or the other.     In Denver, if a home was built after the mid-90's, it most likely is in an HOA governed community.   (With the exception of homes that have been scraped and re-built)

 

So what's the difference?

 

In an older neighborhood without an HOA, you can have trailers, campers and utility trailers parked in the driveway or on the side yard.    

WITH an HOA, this is not allowed.    Some will allow you to put some in the back yard behind the fence, but they cannot be seen over the top of the fence.

 

 

 

 

 

In an older neighborhood without an HOA, you can paint your home whatever color you choose.  

WITH an HOA, there are usually colors selected for the community, and you have a choice of certain colors.

 

 

 

 

 

 

In an older neighborhood without an HOA, you can have chickens (if the municipality allows this) and a maximum of four, but no roosters.  

Most HOAs state there are no chickens allowed.

 

 

 

 

 

In an older neighborhood without an HOA, you can park your panel truck with your company name out front or in the driveway.    

WITH an HOA, many times this is not allowed, and quite a problem in some cases.

 

 

In an older neighborhood without an HOA, you can add onto your home, add a covered patio, or add a shed without approval.   (There will be City approval needed.)    

WITH an HOA, all these additions will need to be sent through the architectural committee of the HOA before it will be approved.

 

 

In an older neighborhood without an HOA, you pay for your own trash, and usually there are no community amenities.  

WITH an HOA, the trash and recycling is included in the fees, and sometimes there is a community pool and tennis courts.

 

With patio homes and attached properties, there is usually an HOA, and amounts vary with the size of the community and amenities included.

 

Most HOAs are to help maintain the beauty of a neighborhood, therefore keeping the home values preserved.    I remember years ago trying to sell a home where their neighbor had painted their home FUCHSIA, and absolutely would not repaint.   My seller even offered to pay for the whole home to be repainted, and he said if he touched his home, he would call the police.   Sadly, the home never sold.    There are those HOAs that act like a separate police department, and pick on everything/everyone throughout the community.

 

It is wise to read ALL the rules and regulations to be sure you can live with the HOA, as they do all differ.    

 

 

Comments (34)

Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

H Joan- HOA's are wonderful as long as they don't go overboard. It is so important that buyers read the rules before they buy a home in the neighborhood. If done right, HOA's can help maintain your home's value. 

Sep 04, 2020 07:47 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kathy, I agree, and some do go overboard, leaving a bad taste for homeowners.  I truly believe they just want to preserve the value of everyone's home.

Sep 05, 2020 07:28 AM
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Sep 05, 2020 06:42 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

In my area, there are homes that have both an HOA and covenants, and some with no HOA but they do have covenants. The covenants are where all the regulations here are (here). And there are positives and negatives to having them, as you point out!

Sep 06, 2020 04:56 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kathy, thank you for including my post in your weekly post! 

Sep 06, 2020 06:18 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kat, we have a few where there are no dues owed, but there are rules to abide by.

Sep 06, 2020 06:19 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Having lived in a traditional neighborhood in NorCal 35 years vs. an HOA in SoCal the last 17 years and can see the Pros & Cons too. I do see more pros than cons to an HOA life, I never worry about my roof, painting my exterior, I have a pool, tennis court and clubhouse and live in much better neighborhood than I would choose to pay to live in as a single-family home owner. I actually know my neighbors too.

Sep 06, 2020 06:32 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Thomas, that is a great way to put it.  Wish I knew more of my neighbors, but when you do not have to do anything on the exterior, you don't see many out.  

Sep 06, 2020 06:42 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Joan Cox ,

I'm glad that Kathy Streib featured your post in her "Ah-Ha" moments for the week. Knowledge is power and buyers need to understand fully the pros and cons of an HOA.

Sep 06, 2020 10:52 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Dorie, I so agree, but many buyers don't read all of them, and then wonder later why something is happening! 

Sep 06, 2020 11:16 AM
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

Love this - a really great break down of pros and cons. I remember one house painted entirely in turquoise which might be beautiful in some areas but wasn't in a sea of browns and greys.

Sep 06, 2020 11:58 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Joan:

Nice overview of the pros and cons of HOAs. Buyers need to think carefully about these issues as part of their home search, especially if they have strong feelings about HOA living, or not.

Jeff

Sep 06, 2020 01:38 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jill, that is always the extremes, but a good reason to have an HOA in place to protect your home value! 

Sep 07, 2020 06:47 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jeff, that is so true! 

Sep 07, 2020 06:47 AM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great thoughts!  Having served on 2 HOA boards, I can attest.  And being on the architectural review committee, let's just say I'll pass on that duty! 

Sep 10, 2020 09:42 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jan, I am sure it is not the most fun non-paying job you will ever have! 

Sep 12, 2020 06:12 AM
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

I live in a HOA community, so, the key IMO is the HOA's balance sheet and projected annual maintenance cost for repairs and upgrades and the amount of funds that are set aside for future projects.

All residents in a HOA community would use that information to determine what the HOA fees might be in the future. The CC&R's should be reviewed and contingent on acceptance by the buyer, since residents usually have  no control in adopting changes to the rules and regulations. 

Finally, most HOA's IMO do a good job in preserving the community's desirability but also increasing the market value of the community. 

Sep 13, 2020 12:30 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kimo, in CO buyers do have the option to review HOA docs and terminate if they cannot live with anything they read.   I too believe they do a good job.

Sep 13, 2020 08:47 AM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Not to mention with an HOA you’ll be paying sometimes hundreds of dollars a month versus nothing. And there’s no guarantee your HOA will continue to function as planned either, but they’ll still want their monthly dues.

Sep 17, 2020 06:41 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

I also wonder if the very same people who live in these communities and accept the rules are also people who are affronted by the thought of having to wear a face mask? Just sayin’.

Sep 17, 2020 06:44 PM