Tips When You Buy in a HOA
Here is what you need to investigate.
As you search for the perfect home, you will most likely find that many of the properties are located in a community or development with a Homeowners Association or (HOA) in the Park City Utah areas. It is a good idea to find out about why there are so many HOAs out there. Here is a little background as to why there are HOAs and why having one will or will not be important to you when your are looking at Park City Homes for sale.
In a recent article published by Realtor.com they offered the following,
“In a nutshell, an HOA helps ensure that your community looks its best and functions smoothly…The number of Americans living in homes with HOAs is on the rise, growing from a mere 1% in 1970 to 25% today, according to the Foundation for Community Association Research.”
HOAs are established with a governing board nominated by those owning in the defined neighborhood or development. It has been set up to make sure the owners and residences have a support structure to maintain the values of the community as established by the guidelines called the Common Restrictive Covenants (CC&Rs) and By-laws.
Realtor.com continues with,
“Simply put, CC&Rs are just the rules you’ll have to follow if you live in that community. Unlike zoning regulations, which are government-imposed requirements on how land can be used, restrictive covenants are established by HOAs to maintain the attractiveness and value of the property.”
Each HOA is a little different and they usually have a required HOA fee to be paid by all the owners in the HOA. These fees typically come due monthly or quarterly. The amount of the HOA fee due is based on the size of the property, how much common area there is, what utilities are included, and what the common amenities are such as swimming pools, tennis courts, club room or houses, elevators in multilevel buildings and the regular wear and tear of the common areas.
There may be additional fees charged or assessed to homeowners if the reserve funds for the HOA cannot cover the cost of unexpected capital improvements such as roofs, siding, paving or any other expenses approved by the HOA governing board if the funds needed are not in the reserve accounts.
Having a HOA is an added cost but there are major benefits when it comes to maintaining the neighborhood and your property and its resale value.
Realtor.com continues to state,
“After your offer to buy a home is accepted, you are legally entitled to receive and review the community’s CC&Rs over a certain number of days (typically between three and 10)…If you spot anything in the restrictive covenants you absolutely can’t live with, you can bring it up with the HOA board or just back out of your contract completely (and keep your deposit).”
The HOA fees will be factored into your loan qualification package to make sure your loan amount is appropriate for your financial profile.
You will find some great advantages and benefits of having an HOA involved and overlooking our neighborhood. It is so important to understand what the fees, structure, and regulations are and how they will come into play when you own a property located in a HOA.
So you will feel comfortable and confident when you are searching for a home or condo in the Park City area to purchase let’s get together so I can help you understand the neighborhood’s and how HOA structures and fees have been established.
For more information on the basics or great tips on buying or selling your home feel free to give me a Call/Text or write to firstname.lastname@example.org
Your proven professional - Jim Bradley 801-599-1089