To HOA or Not HOA? That is the question.

The Look of the Neighbor's House 🏡

Top tips for buyers considering and HOA home

The vibe of the entire neighborhood can have a huge impact on how a home is valued—and how buyers feel when they pull up. You could have the most stunning house on the block, but if your neighbor’s front yard looks a mess, that will largely impact the perceived value. A lot of sales is perception, and we know that perception is reality. Buyers who purchase with the goal of a primary residence buy with their eyes. It’s the reason staged homes sell faster than unstaged. The data doesn’t lie. I always tell my clients: HOA neighborhoods can be like getting a neighborhood dress code. Everyone agrees to a standard that keeps the “bald-headed front yards” to a minimum.

Selling in HOA vs. Non-HOA Neighborhoods 💰

In my experience, homes in HOA neighborhoods do tend to sell for more—sometimes more than you’d expect. I’ve seen buyers pass up homes they loved because the next-door house looked run-down or poorly maintained. I had a client choose a home in an HOA neighborhood over a slightly larger house with no HOA. Why? The non-HOA home had a neighbor with a car parked in the grass and the lawn was not maintained. To my buyer, this appeared to be a neighbor that didn’t have the pride of ownership and that’s what they were seeking. In the instances where I’ve had buyers searching for a neighborhood without an HOA, the most important factor was that there is a pride of ownership with maintained lawns and home exteriors. Not always, but there tends to be a lax in exterior care when the threat of a fine from the HOA doesn’t exist.

Financial Sense: HOA or No HOA? 🏘️

Yes, it can make financial sense to go with an HOA house—if the fees are reasonable and the HOA is well-managed. I feel it’s an investment in preserving your home’s curb appeal and market value. However, not all HOAs are created equal! I’ve also helped a buyer NOT buy into a certain HOA neighborhood after I researched the trend of the HOA increasing $2000 over the span of six years. There is a cautionary tale into HOAs as well, so I stress the importance of buyers reviewing CC&R, budgets, the historical trend of the fees increasing, and potential assessments before committing.