Q: What Does an HOA Do?
A homeowners association, or HOA, is a governing body that oversees a residential or planned community. HOAs are run by the residents through an elected or appointed board of directors. The residents of the community fund the HOA through the payment of regular dues. Some HOAs collect these dues monthly, while others are quarterly or annual assessments. So while an HOA can increase the value of your home, living under the authority of one comes at a price, which can be pretty steep.
HOAs offer benefits by ensuring that the property is kept up, promoting standards, maintaining common areas, and building community amenities. HOAs have several functions and benefits, but their main purpose is to increase property values—everything else they do is with that goal in mind.
"HOAs have several functions and benefits, but their main purpose is to increase property values."
Some people disapprove of HOAs, but they can be a big plus for sellers. One way that an HOA can impact your home’s value is by making and enforcing rules that ensure all homes are clean and that yards are trimmed and free of clutter. Unkempt yards can definitely impact your home’s value.
If you have more questions about HOAs or anything else to do with real estate, reach out to me. I hope to hear from you soon.