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To Buy in an HOA, or Not to Buy?

Oct 31, 2014

Looking for a new home is a very exciting, yet stressful time. With so many options, it can be hard to decide on the perfect house. When considering homes that are part of a homeowners association, or HOA, there are many different pros and cons, depending on your needs. Make sure to consider these pros and cons of an HOA when looking for your next house. The pros:
  • Reduced responsibilities. Especially if you are buying your first home, you may not want the responsibility of up keeping a yard. HOA fees pay for many of these services, such as landscaping so that you do not have to deal with it.
  • Keep up appearances. Since some of the fees go towards maintaining the landscaping, you can be sure that the neighborhood looks its best. Many HOAs also have rules against property neglect.
  • Different amenities. Many HOAs provide different amenities that you may not have access to or be able to afford, such as tennis courts or gyms.
The cons:
  • Potential foreclosure. If you do not pay your HOA fees, the HOA has the power to foreclose on your home. Keep in mind that most HOAs only use this as a last resort.
  • Surprise assessments. If the HOA does not have enough money saved up for certain expenses, they can spring an assessment on you and force you to come up with the money.
  • Restrictions on renting. If you plan on renting out your home, the HOA may have to approve the tenants and demand that they sign at least a two-year lease. They can also prohibit you from renting your home at all.
No matter if you choose to buy a home with an HOA or not, it is important to make sure you have the right homeowners insurance coverage for your new home. Contact Gateway Professional Insurance Services in Vacaville, California for all of your homeowners’ insurance needs.
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