As I help my clients purchase condo’s & homes in planned communities, the question “What are the Pro’s and Cons to HOAs”? always comes up! I have my usual answers, however,  I did some research and found the following insights from other real estate agents and home owners.  Here are some simple and straight forward guidelines to help you make an informed decision

Pro No. 1: Your neighborhood will look good.

Generally, an HOA establishes rules to ensure the neighborhood looks sharp, says Brad Pauly, in Austin, Texas. These include strict guidelines about keeping lawns manicured, restrictions on parking boats and other large vehicles on the street, and limitations on exterior paint colors. OR in regards to condo’s they make sure the common area’s stay clean and up to date, the parking lot is in good condition Etc.

“This type of oversight eliminates issues with one or two properties weighing down all property values due to an unpleasant exterior,”

Pro No. 2: You’ll enjoy access to amenities.

An HOA usually offers community amenities such as a pool, a fitness center, parks, children’s play areas and security gates, door men, etc.

Pro No. 3: Your maintenance costs will be shared.

HOA dues are earmarked for maintenance of shared spaces. Upkeep of the grounds, exterior (if you are in a condo) and upkeep of common areas like the pool or the fitness center.

Pro No. 4: You’ve got a built-in mediator.

Involved in a tiff with your neighbor over that big oak tree that’s losing limbs or the loud music from your upstairs neighboor? You can settle some confrontations with your neighbors by taking your grievances to the HOA’s board or management company.

Pro No. 5: You can get to know your neighbors.

Gina Estrada, who lives in a gated HOA community in Clovis, Calif., says that if you’re elected to serve on the HOA board or are otherwise active in the association, you’ll become better acquainted with your neighbors. Heck, you might even make some new friends. “I believe we should know our surroundings, including the people in them,” Estrada says.

Con No. 1: You’ll fork over HOA dues.

When buying a home or a condo in a community with an HOA, you’ve got to add HOA dues to your budget. The dues vary, but typically run in the hundreds of dollars per month.

Con No. 2: Your hands will be (somewhat) tied.

If someone buys a home in an HOA community and wants to make changes to the property, such as the addition of an enclosed patio, it normally must be approved by the HOA’s board. If you purchase a condo in a building you may be subject to special assessments if a large project needs to be done and get’s approved.

Con No. 3: You might be hampered by an HOA’s financial woes.

If an HOA is facing financial problems or is ensnared in a lawsuit, it could harm your ability to obtain a loan for a home and could hurt sale prices of homes in the community.

Con No. 4: You’ll lose some of your freedom.

When you live in a community governed by a HOA, you’ll have to follow its rules, even if you think they’re ridiculous, Lyons says.

You do, however, have the option of petitioning the homeowners’ association to change any rule you don’t agree with. But if you lose, you will have to live with it. You will also be able to view the rules and regulations during your due dillegence period and can walk away from the house if you can’t live with something!.

Con No. 5: You might be the victim of a “rogue” board member.

Estrada says her HOA elected a “rogue” homeowner to the board who decided to flaunt the rules and do whatever he wanted. For instance, Estrada says, the rogue board member thought the community needed speed bumps to slow down speeding drivers, so he had them installed. That move caused a neighborhood uproar. The process to take out the speed bumps and remove the rogue homeowner from the board cost several thousand dollars, including legal fees, she says.

“When there is one rogue homeowner, it can really mess things up,” Estrada says.

Problems also arise when homeowners stop attending HOA meetings, Estrada says, and it’s left to a small group of people to make decisions.

“The board of directors is made up of your neighbors. If you want to have a say in how things go, you have to serve on the board,” says Ailion.