Factors to Consider Before Buying in a Homeowners Association

Most new housing developments today are part of a Homeowner’s Association (HOA)—whether buyers love them or not, they aren’t going anywhere.

HOAs can be great for maintaining property values and keeping neighborhoods looking nice, but they can also come with restrictions that don’t work for everyone.

Some buyers move into an HOA only to realize later that it’s not the right fit, leading to frustration. Before committing to a home in an HOA, it’s important to understand what you’re getting into and make sure the community’s rules and values align with your own.

What Is an HOA?

An HOA is an organization that manages certain aspects of a residential community. It enforces rules, maintains shared spaces, and ensures homes meet specific standards. Buying a home in an HOA means agreeing to follow its Covenants, Conditions & Restrictions (CC&Rs) and paying membership dues.

The Pros and Cons of HOAs

Benefits of an HOA:

• Helps maintain property values by enforcing community standards.
• Provides access to shared amenities like pools, clubhouses, and walking trails.
• Creates a consistent, well-maintained neighborhood appearance.

Potential Drawbacks:

• Restrictions on home modifications, parking, and even exterior paint colors.
• Mandatory fees that can increase over time or include unexpected special assessments.

HOAs work well for some homeowners but can feel restrictive for others. The key is making sure the HOA’s regulations align with your lifestyle before making a purchase.

1. Not All HOAs Are Created Equal

Every HOA operates differently—some are well-run and improve property values, while others can be frustrating and overly strict. Buyers should take the time to understand how a particular HOA functions before committing to a home.

Review HOA Documents Thoroughly

HOAs are legally required to provide buyers with their governing documents, which outline all rules and regulations. Buyers have seven days to review them, but most don’t actually read through the details. That’s a mistake.

These documents may be long and full of legal jargon, but spending an hour going through them can prevent headaches later. They cover essential details such as:

• What home modifications require approval?
• Are there rules about pets, vehicles, or exterior decorations?
• How does the HOA handle disputes and enforce rules?

If something in the CC&Rs doesn’t sit well, it’s better to know before purchasing rather than discovering it after moving in.

Ask the Right Questions

Beyond reading the documents, buyers should clarify:

• What the monthly or annual fees cover.
• Whether any restrictions could affect their lifestyle.
• How does the HOA manage funds, and are reserves in good shape?

2. Get to Know the Neighborhood

Sometimes the best way to understand an HOA isn’t through paperwork—it’s by looking at the neighborhood itself.

Drive Through the Community

Taking a drive through the area can reveal a lot about how an HOA operates. If there are RVs, backyard sheds, or non-uniform walls, it likely means the HOA is more relaxed on modifications.

On the other hand, if every home looks identical and well-maintained, the HOA likely enforces rules strictly. This can be a good or bad thing, depending on what a buyer is looking for.

For example, someone who wants to park a boat in the driveway, build a shed, or raise their backyard wall should check if others in the neighborhood have done the same. If not, the HOA likely doesn’t allow it.

Match HOA Rules to Your Lifestyle

Each homeowner has different priorities. Some prefer a community with strict regulations to maintain a polished appearance, while others want more flexibility to modify their property. The key is finding an HOA that matches what a buyer needs long-term.

3. Connect with the Community

An HOA isn’t just about rules—it’s also about the people who live there. Current homeowners can provide valuable insights into what it’s actually like to live in the community.

Talk to Neighbors

Speaking with people who already live in the neighborhood can give buyers a sense of:

• How strictly the HOA enforces its rules.
• Whether residents feel the HOA is helpful or a hassle.
• Any recurring issues or disputes that may not be obvious at first.

Some buyers may not feel comfortable randomly approaching neighbors, but even casual conversations—like chatting with someone checking their mail—can offer useful information.

4. Understand Key HOA Terms

Before committing to a home in a Homeowners Association, it’s important to fully understand key HOA-related terms. These rules and financial responsibilities can directly impact your homeownership experience, so taking the time to review them now can help you make a confident, well-informed decision.

HOA Rules and Enforcement

HOAs vary in how strictly they enforce their rules. Some communities closely monitor compliance, while others take a more relaxed approach. Observing the neighborhood can give insight—if you see RVs, sheds, or custom paint colors, the HOA may allow more flexibility. If everything looks uniform, expect stricter enforcement.

Homeowners who violate HOA rules may face consequences such as fines, suspension of community privileges, or even liens placed on their property. In severe cases, disputes can escalate to legal action, potentially leading to costly court battles.

HOA Meetings

Most HOAs hold regular meetings where board members discuss community concerns, upcoming projects, and finances. Attending a meeting or reviewing meeting minutes can provide insight into how decisions are made, whether homeowners are involved, and if major changes (such as increased fees or rule updates) are coming soon.

Architectural Review Committee (ARC)

Many HOAs have an Architectural Review Committee (ARC) that oversees property modifications. This committee approves or denies changes like adding a shed, raising a backyard wall, or painting a home’s exterior. If you plan to make updates, check how strict the ARC is and what the approval process requires.

HOA Disputes and Conflict Resolution

Disagreements between homeowners and the HOA are common, but every HOA has a different process for resolving disputes. Some communities follow a formal complaint system, while others allow the board to handle conflicts as they arise. Reviewing CC&Rs or meeting minutes can reveal how frequently disputes occur and whether they are handled fairly.

5. Attend a Homeowners Association Meeting (or Review Meeting Minutes)

Before closing on a home in a Homeowners Association, buyers typically have 30 to 60 days in escrow. This provides an opportunity to:

• Attend an HOA meeting to see how the board operates and what issues are being discussed.
• Review recent meeting minutes if attending in person isn’t possible.

These meetings offer real insight into the community, including:

• How transparent the HOA board is in handling decisions.
• Whether they focus on improving the community or just enforcing rules.
• Any ongoing disputes between homeowners and the HOA.
• Planned large expenses that could impact future fees.

Taking this step helps buyers determine if the HOA is well-managed or if there are red flags to be aware of before committing to the home.

Choosing the Right HOA for You

Not all HOAs operate similarly, so research and due diligence matter. Some provide great benefits and enhance a neighborhood’s appeal, while others may impose restrictions that don’t work for certain homeowners.

Each HOA has its own rules and community culture, so making sure they align with personal and long-term goals is key to avoiding frustration later on.

If you’re feeling unsure about buying in an HOA, our team at Absolute Real Estate is here to help. We’ve worked with countless buyers to navigate HOA communities, and we’ll make sure you find a home that fits your lifestyle and long-term goals.

Reach out to us today—we’d love to help you find the right home in the right community!