Here are the five most important questions to ask before buying a home in an HOA area
PHOTOS FROM 123RF
By Heith Mohler
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Homeowners association governs property located in a gated community. The property may be a condo or townhouse, or single-family home. One of the main reasons to have an HOA is to maintain a clean and monochromatic environment.HOA’s way of running may vary from one HOA to another. When searching for a house, it is necessary to determine if a homeowner association manages the property and how it operates. A buyer of a house can do it himself or through genuine estate brokers and other professionals who are good at what they do. Home buyers must ask questions about an HOA if they are willing to live in a nan area managed by an HOA. Such questions include;
1. CAN THE BUYER AFFORD THE PROPERTY. Usually, living in an HOA restricted area is associated with monthly fees to maintain the property, like sweeping the pavements. Costs vary with different HOAs. Thus the buyer needs to check the prices and determine if he can afford the fees. Buyers are advised to practise due diligence by asking about the costs that have been paid over the last ten years or five years. It is essential to do this so buyers can predict the increased fee rate and determine if the current prices are undercharged to attract customers. HOA fees for old houses and complex ones with more units are generally more expensive. In developing estates, the monthly fees may decrease as more buyers flood in, thus cost share. The buyer should also be aware of additional costs to be catered for, such as repairing an elevator and replacing an HVAC system. With all the information gathered, the buyer can tell if the HOA fees meet his budget or whether to look for property elsewhere. JULY 2022 | 51
