What You Should Know About Buying in a Homeowners Association

During your search for a new home, you may come across property located in a homeowners association, commonly referred to as an HOA. Before you make an offer, think about the pros and cons of living in a regulated community.

The purpose of an HOA

While some HOAs have voluntary membership, many are mandatory for everyone who owns property in the neighborhood. These groups play an important role in protecting property values and creating a pleasant living environment for residents by setting standards for your neighborhood.

Get to know the rules

When you purchase a home in an HOA, you are agreeing to follow a set of rules called the covenants, conditions, and restrictions (CCRs). These rules regulate what choices you can make with your property, such as landscaping or architectural design choices, and violating these rules may result in a penalty. You should review the CCRs before making an offer on a property so you know what to expect.

Pay your dues

HOAs are funded by member dues billed monthly, quarterly, or annually, depending on the bylaws. If you’re considering buying in an HOA, find out how much the dues are and when they’re assessed so you can factor the cost into your ongoing housing expenses.

Check out the members-only perks

Member dues help maintain common areas and amenities, such as swimming pools or hike and bike trails, which may only be available to HOA members. Even if you don’t plan to use them, keep in mind that these features can add to the property’s resale value.

Join a team of neighbors

HOAs are managed by a board of directors—active members who care about the community. There are often other opportunities for members to get involved by joining a committee or volunteering to help with an event. This is a good way to make connections in your new neighborhood.

If you’re looking to buy a home in an HOA, talk with a REALTOR® to determine if it’s the right decision for you. Visit texasrealestate.com for more advice about buying and selling real estate in Texas.

The Greater Fort Worth Association of REALTORS® is one of more than 1,200 local boards and associations of the Realtors nationwide that comprise the National Association of Realtors. As the nation’s largest trade association, NAR is “The Voice for Real Estate,” representing over one million members involved in all aspects of the real estate industry. The Greater Fort Worth Association of REALTORS® serves approximately 3,200 members by providing MLS services, education, governmental affairs, etc. For more information, visit www.gfwar.org.