What is an HOA?

By James Vaughn

While more experienced homeowners may be familiar with these organizations, those newer to the market and first-time home buyers may lack the requisite knowledge to make an informed decision about buying into an HOA. If that’s you, we are here to help.

1) HOAs: The Basics: Put simply, an HOA is an organization that regulates housing within given area by making and enforcing rules that can govern many different aspects of home ownership like lawn maintenance, paint color, and pet regulations. HOAs can oversee multi-unit housing like condos or townhomes, as well as single family housing within a tract. They require payment of regular membership fees, and membership is required if the home is purchased within the HOAs jurisdiction. In other words, if applicable, the HOA fee becomes another factor of owning a home.

2) The Perks: The most obvious perk of living in an HOA community involves property values. Because HOAs enforce rules that govern appearances and upkeep, and often maintain exclusive-use facilities, they help maintain property values in the neighborhood at a higher value than they might have had otherwise. This is a great perk if you’re not necessarily looking to buy your “forever” home and investment is on your radar. HOAs often provide neighborhood security and other amenities like pool access, clubhouses, and gyms as part of the package.

3) The Drawbacks: While HOAs can increase the value of the homes in a given neighborhood, they also require a regular fee. Would-be purchasers looking primarily for the investment value should compare the cost of the fee relative to the value the HOA brings to the property over the duration of time they are planning to hold the property to see if the cost makes sense. Furthermore, HOAs are invasive to varying degrees upon a homeowner’s life on their own property. Some require basic maintenance and sanitary measures, but others require homeowners to ask permission to remove bushes and do not permit most paint colors or visible political statements. Of course, like any other human organization, they also come with their fare share of drama.

4) Local HOAs: Notable HOA communities in the Fredericksburg area include Lake of the Woods, Fawn Lake, Cornerstone, and Summerlake. Located in Locust Grove, Lake of the Woods is one of the larger HOA communities in the area and offers homes in a wide range of prices. Fawn Lake caters to more upscale buyers, while Cornerstone and Summerlake are 55+ communities. We will cover these communities and others more in-depth in a separate blog.

Home buyers should carefully consider the pros and cons of HOA membership before deciding to buy a house. As always, at Sands & Associates, we are ready and willing to assist those in Central Virginia who want to make this important decision.