Today, I’d like to talk a little bit about homeowners associations (or HOAs).
This topic came to me while I was out looking at properties with a client last week. The HOA fees on one property in particular were pretty high—even higher than the taxes. Initially, this turned my client off of the property.
However, HOAs do bring a certain kind of value to a property. The role of an HOA is to protect the quality of a neighborhood and to create a sense of consistency. To achieve this, HOAs come with specific rules and restrictions.
Whenever a buyer is looking at a property within an HOA, my team and I always make sure that they receive a copy of these conditions and restrictions. While an HOA can be a good thing, certain buyers may find that their lifestyle conflicts with one or more of the restrictions.
In our local Tucson area, we have two extreme examples of HOAs that come to mind.
First, we have Rancho Vistoso in Oro Valley. There, the fees within an average subdivision runs between $25 to $30 a month. This fee will be slightly higher for a gated community.
These fees are designed to cover items such as maintenance of the common grounds.
Continental Ranch, which is a very large subdivision with a lot of recreational areas, also has HOA fees of about $25 to $30 per month.
Sometimes, these fees can be much more. The client I mentioned earlier was looking at a property where the HOA fees were $300 a month. After investigating what that fee covered, however, my client and I discovered something interesting. This fee was quite a bit higher than most HOA fees tend to be, but it also covered much more.
For $300 per month, this fee covered maintenance on the exterior of the home, the roof, and the front and back yard. It also covered the costs of water, sewer, and trash. When you consider the details, this fee doesn’t seem quite as excessive as it did at first glance.
In any HOA, the most important thing is to make sure you know what you’re paying for.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.