First Time Home Buyer - HOA: Buying a house in an HOA - Pros & Cons
Вставка
- Опубліковано 27 гру 2024
- First Time Home Buyer - HOA: Buying a house in an HOA - Pros & Cons
Real estate agent and Realtor Matt Leighton talks about the pros and the cons of buying a house in an HOA (homeowner's association).
Subscribe for more real estate videos - www.youtube.com...
Looking for a real estate agent in your city? I have a network of top producing agents around the country. Email me and I can put you in contact with an agent in your area
matt@orangelinecondo.com
Find Matt here:
/ themattleighton
/ themattleighton
/ themattleighton
HOA: Buying a house in an HOA - Pros & Cons
1:18 - What is an HOA (Homeowner's association)
1:44 - The goal of the HOA
2:02 - Con: The HOA determines the exterior look of the property. When you buy a house in an HOA, any sort of exterior renovations must be approved by the HOA.
3:09 - Pro: The HOA will have a neat and tidy appearance. There are rules that dictate how the exterior will look and if these rules are not followed, the homeowners may face consequences.
3:43 - Con: HOA fees. The fees are paid on a consistent basis (monthly, quarterly, etc) and the fees go towards operating expenses and the reserve fund.
4:57 - Pro: Low maintenance lifestyle. Maintenance costs for the community are shared amongst all the owners and when compared to having a single-family house, the maintenance costs will be much lower to maintain the property.
5:50 - Pro: Some utilities included. This will depend on the association.
7:02 - Con: Rental restrictions. Short-term rentals are not allowed in most HOAs.
8:03 - Pro: Renters have to follow HOA rules. If you want to rent out your property and are worried the renter may not follow all the rules, your renter will have to follow the HOA rules in addition to the lease they signed with you.
9:09 - Con: The HOA could be poorly-managed. The HOA board is made up of homeowners from the community and if those homeowners don't get along, don't like spending money to fix things, or have ulterior motives, the community could run into financial issues down the line.
Business inquires
matt@OrangeLineCondo.com
Matt Leighton - Arlington VA Real Estate Agent
Matt [at] Orange Line Condo dot com
Century 21 Redwood Realty
1934 Wilson Blvd
Arlington, VA 22201
• First Time Home Buyer ...
One of the top 3 selling points on the house I just bought is that it has no HOA.
Perfect!
Buying a home in a HOA was one of the worst mistakes I've made. I see them stalking me all the time taking pictures of my house. I keep getting "correction notices" to pull the weeds out of my flower bed. They complained that I planted the "wrong" types of flowers, but when I called them they couldn't provide me a list of acceptable plants. I drove around and noticed a lot of the flower beds look worse than mine! Also, the structure around the mailbox in the front of the neighborhood blew down, and it's been that way for a couple of months. They don't seem to have any intention of fixing it.
If the number one purpose for the HOA is to maintain and increase property value, why is every house I find with No HOA sold at a premium? To me it seems like regardless of what the HOA does, its very existence lowers a home's value.
I saw a house that was suspiciously under market value, guess why? HOA owned. No thank you.
Everyone I know that has bought in an HOA did so reluctantly.
My parents have a HoA and a large amount of shared land. This includes huge well cared for land, maintained parks, and a pool. It makes the whole neighborhood more valuable.
@@justshady hoa doesn’t own they actually are out there by the developers of the homes to maintain. You have to understand people don’t want their neighborhood looking crazy so they help them regulate
There are literally no Pros to being a part of an HOA.
I bought a house awhile back and about 2 years living there they started a hoa and it was bad they fined me for the color of my vehicle they fined me for having my lights on past 10pm. I'm happy I found someone to buy that property from me
Did you even agree to join it? Unless there was an agreement when buying the house they would have no power over you. Right?
that's very ridiculous!
@@uhoh4480 That's correct. By law if you purchased the property prior to the HOA being established you are under no obligation to join the HOA.
I told my son not to buy a Condo until he has reviewed no less than 10 of the M Leighton videos.
I see no benefit in an HOA .
My street all the homes are well kept and folks mind their own business, as it should be. 🙂
My parents have a HoA and they have huge common lands that are well cared for, a pool, and more that just make living there so much nicer.
He is dead wrong if he thinks that measuring grass thing doesnt happen because it does and much more ridiculous rules that are usually enforced by some power hungry soccer mom Gestapo
The are two fundamental problem with HOAs. First, people do not read their association documents prior to the home purchase. Second, the HOA is typically run by the dysfunctional homeowners. Both issues are caused by the homeowners.
8:20, read the By-Laws carefully. It's usually the owner who's responsible for the tenant's behavior.
Be ready to pay up on violation fees.
I recently bought a new build 7 mos. ago. At the time of closing, I knew that a HOA existed but no dues were being collected. Last month I received notice that a HOA meeting is scheduled to appoint neighbors to serve on the board. There are no existing by-laws, rules or regulations. It's sounds like chaos.
Check the laws on HOA in your state beforehand
I flipped the president of the HOA the bird this morning. He was driving ahead of me and decided to slow to a crawl because didn't like how I was riding my Ebike. It was a 25mph speed limit and my bike limits at 20mph go figure. I know that he's salty bcuz I don't participate with the HOA. I purchased my home prior to them establishing their HOA. 😁
LOL you have the right strategy. My HOA treats me the same way. I refuse to go to any of the meetings I do not participate and I don’t talk to my neighbors either. I’ve been here for 20 years LOL you have the right strategy.
First, there are HOA's for individual single family dwellings &, for attached dwellings like townhomes & condos. The scariest parts are when there is exterior damage, like hail/wind/etc.or, more common areas like pools & party rooms. Definitely pay attention to how much money is in reserves.
HOA is a Karen Association
Bottom line, HOA fees have now far exceeded their worth. In many cases they are now equal to the house payment. Property value WAS a good argument for HOA's, but any savings in property value is now offset by exorbitant HOA fees. Homeowners need to start getting together and ABOLISH the HOA!
Do you always think in such all-or-nothing extremes? Do you genuinely believe that all HOA fees are exorbitant? If so, you don't know very much and seem to have disordered thinking patterns that are common to narcissists and borderlines.
le th $100 or maybe even $200 is reasonable for an HOA fee, depending on how much they do. But I have recently seen them in excess of $800; That is excessive!
@@jf8461 I've seen them MUCH higher than that and over 20 years ago. It just depends on the state. Manhattan has "maintenance fees" that are more than most people's mortgages, but they also have a lot of salaries to pay, elevators to maintain, and the offer all kinds of services and even a form of protection.
What you perceive as affordable and what others perceive as affordable are not necessarily going to line up because people have different levels of wealth.
I happen to share your idea that (for me) $100-200 is reasonable, but that would also depend on what that included. Is there a pool to maintain? a lifeguard to pay? are trash fees included? is water included? is electricity being divided between the units by square footage? Is snow removal included? What about maintenance of the landscaping (which includes more water a paying someone's salary)? Do they receive packages? Is there a fitness center to air condition/heat and with equipment to maintain and repair? Is there a security gate with guards who need to be paid?
Services cost money and people who perform those services deserve to earn a liveable income and have benefits.
Even if you have no services, there are expenses within the community that must be covered by the association, and those fees are collected to cover those repairs when they come up (or hopefully maintain the property so that no repairs are needed unless there's an act of god).
Ask for a breakdown of where those fees are going and in many cases you'll recognize how expensive it can be to do basic maintenance on that large of a scale.
None of us like to pay those fees, but we sure do like having landscaping handled, and swimming in a pool that someone else pays the water bill, electricity and maintenance on.
I think we're kind of saying the same thing, but you've got to be fair and reasonable about what services you are buying into and what those services cost to perform.
@@le_th_ It sounds like you are referring more to apartment or condo complexes. I am not very familiar with thAt situation, but I can see how fees can easily snowball. I am referring to single family home residences, which typically do not include shared recreational centers, clubhouse, pools, or that sort of thing. They might include (but not always) front yard maintenance, weed abatement, some sort of community standards commitee, and sometimes duties within what normally would be considered public right-of-way. In a traditional neighborhood most of these responsibilities are handled by the city or county (code enforcement), but since many of these are within "communities", those responsibilities are passed into an HOA. Now I previously worked for a municipality with engineering and planning for many years, and I have spoken with dozens of individuals who lived in these. And based on their testimonies and my own knowledge and experience, I know that previously "reasonable" HOA fees have crept up to costs that are considered to be "beyond reasonable" to most homeowners. This has been a growing trend in places like Arizona and Nevada (I am sure other places too, but these are areas I am more familiar with).
@@jf8461 No, I'm referring to single family home associations, as well as condos, etc. I know of several HOAs of single family homes that offer a community pool and sometimes a play area or even a dog run.
In particular, I was thinking about The Woodlands, Texas which abolished their HOA fees and instituted a new tax for their residents instead. www.har.com/blog_3188_no-more-hoa-fees-in-the-woodlands
I wish I could read your entire comment, but for some reason it is truncated on my screen?
Regardless, I'm with you on keeping the fees to a minimum and for a proper justification of what is being covered and how much is being set aside in savings to cover significant repairs.
For some people, it's a status thing to be able to brag about how much their HOA dues are. Apparently, it's a show of wealth for them? lol Not for me, thanks! lol I don't like to throw money away foolishly.
HOA Con. Great description of an HOA.
There is a person above who commented on my comment. She loves HOA fees
An HOA fee of $500 monthly adds up to $6,000 yearly... $60,000 a decade... 6 figures in 2 decades.... Quarter million in a half century.... That's a shit ton of money. I guess I was looking for a video on cost risk analysis more than what does HOA do for me. The financial seems like an enormous Con and this video doesn't really talk about this #1 factor.
Love your video but have a question for you. My daughter is looking to buy a first home and she just found one and we all have no idea about the HOA but thanks for this video. The HOA said on that web was $0 how could it be? How could be any suggestion? Please advise
I dont understand how they are even legal
It seems to me that with an HOA other people are dictating what you can and can't do with your property. In essence you are not an absolute owner. Also you could find yourself being defrauded, as many news articles attest. Often people without leadership and interpersonal skills wind up running them, because others have no time nor inclination to participate. For example the guy who has been on the bottom rung all his life and is itching to get a bit of authority so he can finally throw his weight around.
Most communities have zoning laws anyway. Just because you own property does not mean you can do whatever you want with it. You can't run a commercial business unless there is zoning for it, you don't want you neighbor selling drugs and having drug addicts coming and going at all hours of the day and night (or maybe you do?), and most property owners don't want people who throw loud parties every weekend, or have a renter set up a meth lab next door.
If you have trouble with authority and following rules, your antisocial nature probably will be happier in a rural area where you can do just about whatever you please.
Very true. People who have leadership skills are too busy to get involved in running the HOA. Only Karen’s are left to do the “job”
@@EarlyBirdCraft I know people who are very busy in their professional careers, but concerned with protecting their investment, so they choose to make time to be on the board. One is an attorney and the other is a surgeon.
...neither can be called "Karen" since they are both men.
@@le_th_ why you are comparing the worst to the best? HOA is retarded just because they can actually foreclose your house you paid for.
I don't care what they do as long as leave me alone and not to raise the HOA fees .😂😂😂
They suck, they treat people like puppets
so does every apartment/condo/townhomes have HOA’s?
bxby eveee The vast majority does, but every once and awhile I’ll come across one that does not. Rare to not have one, though.
@@sajero2 only in some states!!
Are you kidding me? My HOA over my Condo Community (brand newly built) HOA is awful!! They caused 7 tenants to move right away, to sell! They were owners! They sold! I had neighbors next door who partied until 5 AM in the morning, I called to cops, 18x times on them! with video cam footage! They threw parties, etc. They weaponized their dog and used it to "poop" right on my door step, and also on my back door gate for 3 solid months. All again on my cameras. I contacted my landlord, the owner, the HOA, sent video cam footage to all parties!! I even sent city ordinance codes, got them on the phone. They refused to do NOTHING!... Paying 125.00/ Mo. in HOA fees. not quarterly. I also called the Humane society, cause they were beating the dog!! Starving the dog!! They came out took them to court!! They lied even with evidence, still the dog kept pooping all over everything.. I finally had to pay 1500.00 to an Attorney to get rid of those people !!.. Yea, Yea, Yea,,, Tell me about HOA's... HOA's are the Damn Corrupt Scum of the earth !!! You Tube full of stories of the sinister parasite HOA's Their worthless slime !!! Their tied in with the Developers who built the place, realtors, and the banks, and other cancer spreaders of the earth. Oh, btw way, the My HOA is Ghertner. Located in Nashville, TN. Slimeballs !! Built by OleSouth Developers
😬
I just watched a clip out of Houston of homeowners are being threatened because they are not keeping their Garage doors open from 8am-4pm like the bylaws state.
Top of my no list is hoa
Yeah but my parents house HOS increased from $45/month to $600/month.
Damn🥵🤬🤦♀️Thats insane
I would not pay any HOA money to tell me how to have my house, paying a morgage is enough they can get lost
I would live in a house that is in an HOA free zone. So, I can go crazy. Like Net-Zero-ify my house to kiss energy bills goodbye for example.
My sons mom lives in a neighborhood with no HOA. 400k homes with some people with boats in the yard!
I have been a Real Estate Investor for over 30 years and as a Real Estate broker, I own my own Real Estate brokerage......I would never recommend buying any property that is subject to an HOA. All you have to do is search the web for the countless number of factual stories regarding HOA nightmares. To say that "the number one purpose for the HOA is to maintain and increase property value" is a fallacy, while the "exposure" you take giving almost unlimited control (of your property) to a third party is a Risk no one should take.
Are HOA always monthly or quarterly or does it depend?
They are usually quarterly but it depends. Some are monthly. Others are more infrequent, such as annually or bi-annually
My HOA is $175 a month. It includes a resort style pool, clubhouse, marina, ice machine, boat slips, lawn & landscaping, tennis courts, basketball court, boat and RV storage. I think it is ok.
If it includes alot of amenities it would be ok but see HOA and CDD with little in return
It isn't just the monthly fees though. There are times when they throw special assessments and make you pay outright which sucks.
it's ok...until you spend double that on all the random fines they give out
@@wearejungians Yes. Special assessments for projects that never get done… Or special assessments just to get “the reserves up” only to find your dues are raised over $ 50 the next month on top of that…
Very nicely done. This is a real quality video full of relevant information.
When you buy a house in HOA you really do not own the house.if you want to do any upgrades to the property you got to get permission in a regular neighborhood you can live free 😁 in the HOA you get told how to live. You got to get permission to have party don't pay your HOA fees take your house I got with the mortgage in the property tax I don't need a HOA fee.
I like the idea that people have to get permission to have a party and before they can do upgrades that may take months and months to complete, destroying the peace and quiet of the neighborhood.
If people were such self-absorbed assholes who lack empathy for others and think nothing of violating the social contract, HOAs wouldn't be a necessity. However, narcissists, sociopaths and psychopaths live amongst us, and thus they are necessary.
@@le_th_ I thought that HOA was just rip off until I realized that most HOA properties are safer. They are gated community with maybe security
HOA is a business on its own, which has proven in more times than none to f***k property owners, as much or good portion of an association butgets gets stolen or cleverly misplaced in other people's pockets.... Oh hi there Miami, Florida.
Anyhow, certainly not all association entities practice this terrible behavior, thank God.
All depend if a person wants no responsibility in maintaining their own property from landscaping maintenance, roof maintenance, and things of that nature.
Condominiums or associations "take care of that" exterior and structural integrity of a condominium. Just an example.
However, is a huge turn off for many active buyers, being first time or not, and even takes a tool too on some individuals that want to start flipping and investing and if financial laverage isn't much of an available option at first from the investor, it obviously can become an issue.
I'm no expert at all, but at least in Miami, Florida many property owners are suffering with their properties not being kept accordingly from "these associations". So people will speak and express their own experiences based on how that's been to them.
I agree completely...HOA are usually awful. Most of them dont do anything; most home owners still have to maintain all landscaping responsibilities.
200 bucks a qtr if I'm correct should be about 800 a yr🤦♀️😲....smh. just a bunch of legal loopholes to get money on large lump sum from home owners.
Are you even able to have a Company Truck parked in the driveway??
Nope :)
Sounds like a nightmare.
Nice suit
Thank you!
HOA PREVENTS you from renting out your unit. so BEWARE!!!!!!!!!!
yes, before buying an HOA home make sure the HOA allows you to rent otherwise you are stuck with the home or sell it.
I always google the HOA sometimes you hear crazy stories but I would have no issue buying in one
Yeah some HOAs can have some weird history but so long as you respect the rules, it shouldn't be an issue.
I disagree with the low maintenance lifestyle of living in an HOA. I know someone that still has to maintain their front yard despite paying HOA fees.
This guy has that "President Of An HOA" look. Avoid living in an area under HOA authority.
He just talked me into buying into an HOA when I wasn't even considering it.
It makes me happy to think that no one will be parking on the lawn, and that snow removal and landscaping will be regularly handled, as well as having the pool regularly maintained. I'm smiling just thinking about it.
A Condo my mother had in Maryland has a $750.00 every three-month fee and a $200.00 every month (7 year-Special Assessment) for the roof. 80 Condo renters four Condo owners per unit do the math. Too much.
With condos, I don't think you can get out of the HOA fees. That $250/month your mother's paying seems to be a norm. The roof thing isn't though so she just ran out luck with that. But I bet the property is really beautiful or she would have left already.
So this monthly HOA fee covers what? Someone comes to mow my lawn? Or i pay this fee and on top of that i need to pay extra to keep my place super tidy? Insane! Lol. Im trying to be open minded.
Some of the common items covered by HOAs include exterior maintenance, snow removal, amenities such as a pool or tennis courts and lawn maintenance for the common areas
@@TheMattLeighton yeah the only down side is you're left to someone elses motivation to do something. If you're the kind of person who wants a clean lawn and youre a part of an HOA that covers that in their fee but they rarely get the people to do it then it becomes an issue.
@@TheMattLeighton this is misinformation. HOAs cover nothing and charger for everything then make you pay for everything.
Stop lying.
@@Antassium HOAs don’t cover anything? Nothing at all?
We all know the real reason why HOA was made in the first place
Yes, to keep people from parking on the lawns instead of the driveway or street.
@@le_th_ haha sure. You must feel special
@@le_th_ I live in a very nice neighborhood that is not HOA and nobody parks on their lawn. ✋
@@bad_vaporizer I've lived my entire life in neighborhoods like that. Those facts do not preclude me from seeing it occur in other neighborhoods.
@@bad_vaporizer Nope. I feel authentic.
Our Milwaukee, Wisconsin condo association of 88 condos is held hostage ! No communication, No annual meetings for 4 years allowed. No repairs , no accountability, no visibility, no communication, no service . 2018 we are told we are in debt for $40k now 2022 we are in debt for $190k debt . We have torn roofs documented by private house inspection with drones and 400 onus shingles , falling balconies , rats by our dumpsters with torn lids , Co tasted all government agencies of Milwaukee and state level. They told us they can’t help and we need to get a lawyer to fight for a civil suit . We got a lawyer and we got no response from the management and board . We are going g to UA-cam nationally for help how do you change the non responsive management and board and our homes are at risk and we we have to lay more assessments? Why pay for service that offers no service , no accountability, no visibility, no communication? Help
Milwaukee District 2. Appreciate any functional methods . Thanks
Spring Terrace Condos !
Dude get to the point !
HOA is like a Foster Home 🤣
SIESIE CHAMPION Australian Home? Fosters, Australian for beeeer.
My fear of an HOA is what if they change the rules after you get stuck in a 30 year mortgage? You’ll but upside down for 8 years due to amortization. So just up and moving isn’t an option. I don’t want to move somewhere and have them suddenly decide my Retired Army flag or American flag is all of a sudden racist and hateful. I’d probably hit the dude who comes to my door with that....
HOA's can actually become anti american!
@@theealan5008 He said American flag, not confederate flag.
@@theealan5008The prime example weirdo moron. Go back to grade school you can't read.
It's just a matter of time before this guy is Pro HOA. The HOA just has to Brain Wash this guy just a bit more.
People who park on the lawn....how freakin' lazy can they be? I'm not even a homeowner and those people drive me up the freakin' wall. It's like they were raised in a barn.
Ok Karen
@@James_Philip915 ...yawn.
Okay Karen
@@sharonwilliams8552 Gosh, that's so original. I bet you spent HOURS coming up with that all by yourself?
What next, I'm rubber, you're glue?
...and I'm so terribly crushed by your assumptions. How will I ever go on?
Yeah get it from a realstate seller eh. Hoa sux
HOA sounds like a Karen nowadays. 😤
If u lost the suit I bet u would gain alot more followers
Dang for real?
It should be up to the individual to maintain their own property. No need for someone else coming in and telling me how and when to maintain my property that i lawfully own and pay the mortgage on. If i want to add onto my house to increase the value... that should be my business alone. Maintaining your property comes with the cost of owning a home. If people don't want to cut their grass and leave their yard trashy... they're adults. They can suffer those consequences. Cookie cutter communities suck anyways. If you don't like it, don't own a home. Don't tell me what to do with my property.
F HOA
HOA is a ripoff