Real Estate News And Views

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Are the Home Association Fees Worth It?

Get a real estate license and you'll help clients avoid home buying pitfalls like moving into a community with a questionable HOA. Here's how to determine if their dream home is in a dream neighborhood.

Visit the HOA Office

Meet with a representative from the office and learn about what the HOA fees include. Also ask about the rules. For example, some communities don't allow cars to park on the street. If your clients have frequent visitors or if they have a large truck that doesn't fit in a garage, living in a community with strict HOA rules may not fit their lifestyle.

Review the HOA Budget

How are the HOA board members spending the community's money? Are they buying chairs for the community pool area when the landscaping needs dire attention? Overall, you want to make sure the board members aren't spending more money than their taking in. If they are, your clients can bet on an HOA fee increase in the near future.

Check the Meeting Minutes

Sit down with your clients and carefully review the HOA meeting minutes from the last six months to a year. It's a great way to see what's really going on.

Get a Disclosure Statement

Your buyer's disclosure statement should outline each HOA fee. It should also mention any special projects planned for the next year or two that will lead to an HOA fee increase.

Way the Options

If your clients find out the HOA fees will significantly increase, point out the positives. For example, an HOA will deal with a sloppy neighbor, and if the board members are making smart decisions, an attractive neighborhood could lead to a quick home sale in the future.

By Danielle Macklin, Allied Schools, www.realestatelicense.com