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BUYING AND HOMEOWNERS ASSOCIATIONS
When searching for a home, you may end up selecting a property in a community with a Homeowners Association (HOA). Before you buy, it’s important to know how an HOA works and what they mean for you. Peggy McLaughlin, Broker Sales Associate with ERA Justin Realty provides an overview of what HOAs are and whether or not they are the type of property for you.
What is An HOA?
A Homeowners Association is a nonprofit organization, made up of a leadership team or board of directors that makes and enforces rules for multiple-unit buildings like condominiums and townhouses and planned communities of single-family homes. These members are elected by residents and meet regularly to review community affairs.
If you buy a property with an HOA, you’ll be required to join its homeowners association. As a member of the homeowners association, you agree to abide by the HOA’s rules and regulations, which are designed to keep your community safe, clean, and visually cohesive and appealing, and to pay dues, known as HOA fees. An HOA will usually have its rules in a document called a Declaration of Covenants, Conditions and Restrictions (CC&R).
But all homeowners associations aren’t the same in services or cost. Peggy says, “Fees can differ even within a development, due to variations in square footage, location, and orientation, all of which can affect how much upkeep and maintenance the property requires. Thus, the more features included in the community, the more you’ll pay in HOA fees.”
Condominium HOAs
A condominium is like an apartment you own. You own the interior of your property, but the HOA owns the exterior and all common areas.
Condo HOAs tend to have the most restrictive rules—covering everything from where you park to what color your window treatments can be, to whether or not (and what type) of holiday decorations you can display in your front windows or entryways. The HOA can also manage any fitness centers, swimming pools, parking garages and storage units.
Townhouse HOAs
Townhouse HOAs usually provide the same types of features and amenities that condo HOAs do, but they’re typically not as restrictive. Because you also own the exterior of your townhouse, you have a little more control over what you can do with it. While there may be rules about what types of landscaping you can have and what color your mailbox is, you can usually put up Christmas lights without having to fill out two or three forms. Your townhouse community may also include a pool, clubhouse and fitness center, and the HOA will manage those.
Single–family residence HOAs
Single-family residence HOAs generally cover common areas such as neighborhood parks, green spaces, sidewalks, and swimming pools. Homeowners are responsible for their own home and yard maintenance.
It is important to know the type of HOA you are entering before committing long-term. Peggy continues “My advice would be to carefully read over the rules and understand the restrictions. New homeowners can get caught up on wanting a particular home that they glance at or overlook some restrictions that may not readily impact them when they move in. They need to consider future implications such as outdoor holiday decorations or whether or not they can own a pet.”
When you’re looking at a potential property to buy, it’s important to have an experienced professional, such as Peggy McLaughin, who can help you understand the neighborhood’s HOA structure and fees. To help you find your next home, contact any one of our ERA Justin Realty Sales Associates at 201.939.7500. ERA Justin Realty has sold 3 times more homes in Rutherford than the nearest competitor, based on statistics from NJMLS. We are located at 118 Jackson Avenue or 57 Park Avenue in Rutherford.
