HOA: Pros and ConsApril 3, 2012 — 944 views
If you are a real estate agent selling property that is part of a Homeowner's Association (HOA), it is important to understand the pros and cons about these types of properties so you are able to best pitch them to potential clients. While there are many positive aspects to an HOA, there may also be attributes some clients will find undesirable. You should explain that buying a home in the association may involve something of a trade-off.
Homeowners that are part of the local HOA must get approval from the committee before making changes to their homes. For instance, if an owner wants to paint a house bright pink, this change may require the organization's approval. While this may make it seem like some freedoms are taken away, it also prevents neighbors from doing anything drastic to their property that may affect the property values and aesthetics of the overall area.
On the negative side, explain to clients they will have to pay monthly or annual fees to the HOA, and the dues may go up without warning. However, some of the pros of the HOA include the fact that it maintains and pays for local communal facilities such as playgrounds, parks and other community areas. Additionally, it can help manage disputes among neighbors and host neighborhood events, thereby creating camaraderie in the community.