4 Things to Watch for When Buying into an HOA

HOAs are becoming more popular as people are moving away from renting and towards buying their own houses. However, you’ll want to know exactly what you’re signing up for before you buy into an association-governed property to avoid future conflicts and misunderstandings over expectations.

Here are a few things to watch out for when you’re looking at buying into an HOA in Santa Rosa.

How Much is The HOA Fee?

When buying a home, you’re likely aware of the common considerations such as price point, number of bedrooms and bathrooms, lot size, proximity to transportation, and schools to name a few. However, there is one consideration that may be overlooked when determining the purchase price and that’s Homeowner’s Association (HOA) fees.

This can be affected by several factors, including how many homes are in the community, the services provided, and how much maintenance your home needs over time. The average monthly fee varies greatly depending on location, condition of your home, and the type of amenities offered by your community.

Are They Within Budget?

Some HOAs are so large that they have more cash than they know what to do with. But others struggle to collect enough money in dues to cover their obligations. If you’re considering moving into a new community, make sure its finances are on solid ground by asking how much money it has in reserves. If the answer is “not enough,” that’s something worth considering before signing up for membership.

The best way to ensure that everything goes smoothly and as planned is by hiring a professional homeowner association lawyer to look over the purchase process.

What Are Their Reserves Like?

The reserve fund is where HOAs keep extra money for maintenance or repairs that may arise down the road. You’ll want to ask about their reserve levels when considering purchasing into an HOA community because this will determine whether or not they have enough funds available for future projects.

Is There an Alternate Dispute Resolution Process in Place?

One major drawback to HOAs is that it can be difficult to resolve disputes with other property owners, especially if you don’t get along with them. If this happens, there needs to be a clear dispute resolution process in place so that everyone knows how they’ll handle problems as they arise. Without this structure in place, your only option may be court action or mediation and they both are very costly options. As such, it could leave you paying thousands or tens of thousands of dollars out of pocket without any guarantee that the results will satisfy everyone involved.

Are you looking to buy into an HOA and need a skilled homeowner association lawyer in Santa Rosa? Johnston & Associates Law can help! To know more, call (707) 545-6542.