Buying a Home With an HOA
Buying a Home with an HOA
When you are looking for a house, it is likely that you will come across a Home Owners Association (HOA) in at least one of the neighborhoods you are looking at. Since joining the HOA is usually mandatory if you buy the house, it is important to make sure that you ask specific questions prior to committing to purchasing a house, a few of which we have included below.
What is the monthly HOA payment?
On average the HOA fee is about $200 a month and when you are calculating the mortgage of the house, it is worth budgeting this in as well to avoid any surprises. Even if you pay off your home, you will still need to pay the monthly fee. Make sure to ask how often they increase the fee and if they have in the past and for what reason. If they increase it every year then it may not be worth it in the long run.
What benefits do I receive from my HOA payment?
Buying a home with an HOA offers many neighborhoods offer exclusive amenities such as pools, gyms, and maybe even a tennis court or two. Make sure to ask if your HOA fee grants you access to these amenities or if it is an additional fee to be able to use them. Any public landscaping done is usually also covered by the HOA fees in an effort to keep up property values.
What are the bylaws?
While some people love the strict rules of an HOA, others may not. HOA rules are long and strict and can restrict everything from what color you can paint your house to if you can add a pool to your backyard. It is perfectly acceptable to ask for a copy of the HOA rules.
How do you manage the reserve fund?
Think of it like a savings account. The money is collected and put in the account and then dispersed according to what the community needs. Requesting to see how they have used the funds in the past will help you be able to see if they are being managed correctly.
There are many questions you should ask prior to committing to a home with an HOA and the right real estate agent will be able to help you get those answers. When you are looking for a Camarillo realtor we hope that you will consider our team. Our website has up to date information regarding the real estate market in Ventura County as well as Thousand Oaks homes for sale.