What Buyers Need To Know About H.O.A's
Hey, Jon Sump here again with The Home Brokerage and The Home Brokerage Show, bringing you my tip of the week. This week is about HOAs and CC&Rs, what are they, what does it matter to you.
Well, let's start with HOAs, it should matter a lot. HOAs are anything that could be from a condominium complexes, things like that have HOAs where you pay a fee, and those fees can be anywhere from minuscule to pretty substantial fees. I've seen them as low as $75 a month and I've seen them as high as almost $400 a month. You've got to make sure you understand what you're getting into before you even start looking in a particular area.
Ask the realtor. Most realtors should know. If they're a good realtor they'll know the HOA costs. If they're not and they don't know, call me, I'll tell you. Those HOAs usually go for ... In a condominium complex, they cover the outside of the property so the outside walls, in some cases the roof also but not always. Some cases you're responsible for your own roof. It also usually covers the maintenance of the grounds, the driveways, the cement, the fencing, all that's usually covered in HOA fees.
Now there's also what's called CC&RS, which stands for codes, covenants and restrictions. What those are, are the rules of the place. In some areas ... Like, I had a friend of mine that lived in an area that had HOA, could not have a boat that could be seen from the front yard. He parked his boat in the backyard but it was a ski boat and had one of those bars on the top where the rope tied onto and that could be seen from the front yard and therefore he kept getting fined.
One of the things you want to keep in mind, you're looking for to make a purchase and that purchase is going to be in an HOA, drive the area and then you'll get a feel for how they want it to look. Make sure you can live that way. If you've got a bunch of cars, it might not be a good idea for you to go into an HOA. If you don't have a lot of cars and everything you do recreationally will fit behind your fence where people can't see it, then maybe it's okay.
The other thing is, in some HOAs with their CC&Rs, restrict the type of color you can paint your home, restrict the type of planting you can do in the front yard. There's all sorts of information so make sure when you're getting ready to buy your next home that you understand the HOA before you get too emotionally invested in purchasing that home and you completely understand it.
You don't want to get into something and realize after you're in it that you hate being there because of that particular HOA or the CC&Rs. Not all HOAs are bad, a lot of them are great. They keep the area looking a certain way, which can be good for long term for the investment of your property. Also, there are some HOAs out there that are kind of harder to deal with. They're very, what's the word I'm looking for here, stubborn in the way they deal with folks so just keep that in mind when you're looking.
If you have any questions, concerns, please feel free to call me anytime. If you like this and this has been helpful, please like and share it, I really appreciate it. You never know who might be needing this information. Don't forget to check out our YouTube channel up above and, as always, make it a great day.