I've done videos on homeowners associations before and wooooh, does it spark some controversy!
Today I want to dig a little deeper into the HOA pros and cons so that you can answer the question
'Should I live in an HOA community?' with confidence!
If this is your first time here, welcome! If you've been here before thank you so much for
coming back and for spending your time with me. My name is Lindsay and I'm proud to be your Anthem,
Arizona REALTOR® with the Wise Move AZ Team at Realty ONE Group. On this channel we have a lot
of fun talking about all things Anthem and real estate, every single Thursday, and we absolutely
love having you along for the ride. Talking about HOAs really seems to fire people up.
We did a video titled 'What is an HOA?' and you can watch it here if you're interested, but from
the comments it's clear that some of you hate HOAs with a fiery passion. Yeah, it was intense!
Anyways, I also know from my job that a lot of people really love living in an HOA governed
community. I want to be clear before we go too far. I don't think that HOAs are inherently bad
or inherently good. I honestly believe that there are really good HOAs and really bad HOAs. As a
buyer, you must, must, must, do your due diligence before buying a home and that includes researching
any applicable homeowners associations. HOAs are very common in Arizona so it's something we find
ourselves talking about often. Anyways, if we can all play nice in the comments on this one,
that would be great! I am all for sharing your opinion and experiences but let's try to keep
it constructive. Personally, I think that the pros and cons of living in an HOA impact us all and the
decision you need to make is whether the pros outweigh the cons. So, let's jump in! Pro #1:
Amenities. Chances are if you're paying HOA dues you'll have access to some amenities.
I live in Anthem, Arizona and our amenities are incredible. Currently we pay $84.65 per
month and we have access to the community center, community parks, pickleball courts, tennis courts,
trails, and some of my favorite annual events. If you want to learn more about
Anthem you can always watch our Anthem playlist or click the link in the description box below.
Anyways, for us the amenities alone make the HOA dues worthwhile. For many people, just getting
everyone in the family gym memberships would cost more than the HOA dues. If you're buying into an
HOA make sure you understand what it includes and that you feel like the value is in line with
what you're paying. It could include amenities but it could also include some utilities, roof
replacement, and any number of things. Con #1: Cost. HOAs cost money. They cost money to belong
to, and they cost money to run. Our beautiful parks don't magically maintain themselves,
unfortunately. The cost to belong to an HOA can be prohibitive. If you're planning to buy into an HOA
governed community make sure that you understand all of the fees. The fees may include transfer
fees, capital improvement fees, monthly fees, special assessments, and more. I also recommend
trying to track down information on the history of those fees. Have they stayed the same over time?
Do they go up every year? You need to make sure that you can afford the fees currently
and that you aren't spreading yourself so thin that you're in trouble if those fees go up in
the future. Pro #2: Not your Problem. What does that mean? One thing that many people like about
HOAs is being able to call on them when there's a problem in the community. The HOA has a vested
interest in resolving concerns because the HOA board is typically made up of current residents.
If you're unhappy with people speeding down your street, for example, chances are they will be too.
Again, it's important to know what falls under your particular HOAs scope and what doesn't,
so that you know what you can call on them for. If you're busy, being able to pass the buck to
someone else can be a big relief. Con #2: Restrictive Rules. This is probably one of
the biggest complaints I've heard about HOAs. People feel like their ability to live their
day-to-day life is impeded by the HOA's rules. Personally, I haven't experienced this. In Anthem
our rules don't feel overly restrictive to me and anything I've wanted to do or needed hasn't been
an issue. I do have to tell on myself though! I did get in trouble with our HOA once and I was
so embarrassed. I guess it had been a particularly busy week, mixed with some rain,
and I got a violation for the weeds in our yard! They were right, there were a lot of them,
and if you've ever driven around Anthem you know how beautifully cared for and manicured it is,
and here I was with my yard full of weeds. Anyways, I picked them, sprayed, and let
the HOA know. There were no fines. It was no big deal and I have been more careful since. If you're
worried about an HOA being too restrictive, read all of the governing documents before you buy in.
This includes the CC&Rs, any addenda, and any bylaws. They may have restrictions on parking,
paint colors, vegetation, property use, and more. Every HOA has a different set of rules
that they abide by. So make sure that you're comfortable with them before you buy in. Pro #3:
Uniformity. HOAs can really help to maintain the appearance of a community. The HOA may
be responsible for maintaining common areas, but they may also enforce the exterior maintenance of
the individual properties within the HOA. Remember my story about the weeds? Well thanks to the HOA,
my neighbors didn't have to stare at my unkempt yard for too long. Our HOA also oversees when
owners need to repaint the exteriors of their homes, the colors they can use, and the vegetation
that's permitted. This helps to give the whole community a similar look and feel, while still
giving owners the flexibility to make the exterior of their home their own. Does it mean that I can't
paint my front door bright red when the mood strikes? Yes, but it also means that my neighbor
can't have 12 cars in their yard, so it's a win in my books! If you're thinking about buying into an
HOA, drive the whole community. How does it look? How does it feel? If possible, stop and talk to
other residents. Ask them what they think about the community and the HOA. Con #3: Management.
This could be a pro or a con depending on the HOA, but the point is is that you're kind of at the
mercy of the HOA's management. The HOA could be unresponsive or mismanaged. As an owner in an HOA
you rely on the HOA to build up the reserve funds and to keep the best interests of the community
as a top priority. You want to be able to trust that they're making good use of your hard earned
dollars. Some HOAs use a property management company. If that's the case, I recommend that
you do some research into that company. Again, if possible talk to other residents in the community
and ask them about what their experience has been with the HOA. Lastly, make sure that you're
reviewing the financial statements to ensure everything looks healthy and sustainable for the
foreseeable future. Pro #4: Involvement. I think one of the great things about HOAs is the ability
to get involved with your community to serve the residents and to truly make a difference.
I haven't been on any of the Anthem HOA boards but in the community we lived in previously I was on
the condo board and on a couple of committees. I loved being able to meet the other residents and
to know what was going on in the community. I know that sitting on boards isn't everyone's cup of tea
and that's okay, but I thought it was worth bringing up. Con #4: Red Tape. We talked earlier
about how some HOAs may feel overly restrictive but now we need to talk about the process of
getting things done. If, for example, you want to put a pool in your backyard or build an addition,
you're going to want to know what the process of getting HOA approval looks like and how long it
takes. Carolynn did a whole video on applying to put art in her yard with the HOA. If you'd like
to check that out and learn a little bit more about the process in Anthem Country Club, you
can click to watch that video in the cards. Your opinion of the HOA will depend on your perspective
and what you personally think is reasonable. So, make sure you ask questions and get the answers
you need before you buy into an HOA. Pro #5: Property Values. Homeowners associations can
definitely help to preserve property values in an area. Since owners are held to a certain standard
when it comes to the exterior of their home, you tend not to have issues with yards and exteriors
being neglected. HOAs can also give prospective buyers peace of mind that the appearance of the
neighborhood won't change too dramatically in a short period of time. Now, I want to put a caveat
on this one. If an HOA is being poorly managed and the fees don't justify the value you receive,
it can actually hurt property values. So, there you have it! As I said before,
I don't think it makes a lot of sense to make blanket statements about whether HOAs are good or
bad. You really need to do your due diligence on the specific HOA you're considering buying into.
You want to make sure that you're getting value, that you agree with the rules, and that you still
feel free to love and enjoy your home. For us, the answer was yes! The Anthem Parkside HOA has been a
pleasure anytime we've had to deal with them, and I love what they (along with the Anthem Community
Council) do for our community. If you'd like more information on the Anthem HOAs, click to download
your free guide in the description box below. We talk about who covers what and what it all costs.
If you found this video helpful let me know by hitting that like button and subscribing
to our channel. Lastly, if you'd like to learn more about what an HOA is in detail click to
watch this video up top, or if you're done talking about HOAs click to watch this video on the bottom
where we share some of our best home maintenance tips. Enjoy those and I'll see you next Thursday!