Before signing on the dotted line for your new home, make sure you know what your homeowners association (HOA) fees are and what they cover. Because most new planned communities have HOAs, whether you’re buying a detached home, condo or townhome, factoring in that added cost is a necessary part of your home-buying budget.
Depending on the amenities, HOA fees can be a big bite out of the budget. Monthly fees in our area typically range from $50 on the very low end up to $250 or more. However, for single family homes in communities with no amenities, fees can be as low as $25 per year.
What does that payment cover? That depends on where you live.
City services such as trash removal, water and sewage are also commonly covered by HOAs and sometimes even cable services will be included with the fees. The dues in planned, single-family-home communities often include security in gated communities.
Be aware that HOAs are able to levy special assessments for major repairs, if needed.
Before buying a home, research these three key elements:
- Financial Health of the HOA
Make sure the HOA is properly funded. Request a copy of financials available to homeowners. Check out how often dues have been increased over the years.
- Maintenance Responsibility
What is the HOA’s responsibility and what is the homeowner’s responsibility?
Understand the rules before you buy.
The more you know, the easier it is to make the right decision. And of course, your real estate agent should be a resource for any questions you may have.
Full article on RISMedia.com.