Buying a Home in an HOA: Is It Right for You?

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Buying a Home in an HOA: Is It Right for You?

Homebuyer opinions about homeowner associations (HOAs) are often divided. While some see them as a way to protect their investment and enjoy added amenities, others view the fees and rules as restrictive. If you’re considering buying a home in an HOA, it’s important to understand both the benefits and drawbacks to determine if it’s the right fit for you.

Why HOAs Are Becoming More Common

HOAs have grown significantly in the U.S. over the past few decades. In 1970, there were only about 10,000 community associations. Today, HOAs manage about 30% of the country’s housing stock, representing 75.5 million residents. Between 2009 and 2023, the percentage of single-family homes built within HOAs increased from 49% to 65%.

In areas like Oakland County, Michigan, many new developments come with HOA membership. Communities in cities like Farmington Hills, Novi, Northville, and West Bloomfield often feature managed associations that maintain high standards and offer desirable amenities. With so many homes being part of these associations, it’s increasingly likely that your dream home might come with HOA membership.

Pros of Living in an HOA

  1. Access to Amenities: HOAs often provide amenities like pools, gyms, playgrounds, and clubhouses—features you might not afford on your own.
  2. Low Maintenance: Many HOAs handle exterior maintenance, landscaping, and upkeep of shared spaces, which is appealing for those who don’t enjoy or can’t manage these tasks.
  3. Uniform Standards: HOA rules ensure that homes are well-maintained, which can help protect property values and create a polished neighborhood aesthetic.
  4. Improved Resale Value: Homes in HOA communities often sell more easily because buyers appreciate the consistency and amenities.

Cons of Living in an HOA

  1. Costly Fees: HOA fees can range from $100 annually to over $1,000 monthly, depending on the community. These fees also tend to increase over time.
  2. Strict Rules: HOAs enforce rules about exterior appearances, landscaping, and even the types of vehicles you can park. If you value freedom, these restrictions might feel stifling.
  3. Fines for Violations: Breaking HOA rules can result in fines, with the most common violations involving yard maintenance and vehicle restrictions.
  4. Paying for Unused Amenities: If you don’t use the amenities, such as pools or tennis courts, the fees might feel like a waste.

Tips for Buying in an HOA Community

If you’re open to buying in an HOA, here’s how to make an informed decision:

  1. Review Rules and Regulations: Before signing a contract, request a copy of the HOA’s covenants, conditions, and restrictions (CC&Rs) and make sure you’re comfortable with the rules.
  2. Understand the Fees: Ask about current fees and their history of increases to ensure they align with your budget.
  3. Follow the Rules: Adhering to HOA guidelines will save you from fines and disputes.
  4. Stay Informed: Read all HOA communications and attend board meetings to stay updated on changes and decisions.
  5. Consider Joining the Board: Serving on the board allows you to advocate for your interests and influence policies.

For more tips and insights, check out our home buying resources.

The Takeaway

Whether living in an HOA is right for you depends on your personal preferences and lifestyle. If you value amenities, uniform aesthetics, and a sense of community, an HOA might be a great fit. However, if you prefer freedom from additional fees and rules, you may want to consider homes outside of HOAs.

For additional guidance on buying or selling homes in Oakland County, contact Tom Gilliam, your local real estate expert, at 248-790-5594 or visit homes2moveyou.com for personalized advice. Explore available homes in Commerce Township or Royal Oak and find the perfect fit for your lifestyle!