Home Owners Associations HOA’s
Home Onwers Associations or HOA’s can be a factor in a Real Estate transaction. Many homes in the St George, and Washington area’s are now part of what is known as an HOA, or a Home Owners Association. Many people like the way an HOA controlled neighborhood looks, but may complain and even resist the rules of the HOA. It may be true that HOA neighborhoods look better, cleaner, and more organized than many neighborhoods without HOA’s. Some people even believe that homes in an HOA neighborhood hold their values a little better than without, because of the neat and orderly appearance of the area. Let’s face it, almost every neighborhood has a borderline hoarder. This is the house that hopefully keeps their garage door closed. It also usually has dead grass, weeds, and maybe an abandoned car somewhere on the. The question is how much does this house hurt the other home values next door, or on the same street? The biggest advantage of an HOA is minimizing the damage a next door hoarder can cause.
Do HOA Neighborhoods Attract or Discourage Buyers?
The answer is yes. While some people are attracted to a neat orderly area controlled by HOA’s, other buyers will run from them. The reasons some people dislike the HOA concept include, the fees, the rules, and nuisance. Home owners in and HOA may receive a notice in the mail that they have a weed growing in their front yard, or because they left their garbage can on the street too long after it was emptied. Maybe they left their car out of the garage, or parked on the street over night. The list of items a home owners association monitor can be very long. It is very important that the home buyer understand how the HOA will affect them. Some more expensive HOA’s can be a deterrent to a potential buyer.
Washington County HOA Fees
The fees charged by the Home Owners Associations can very greatly from neighborhood to neighborhood. Some include exterior insurance, cable. common areas, etc., etc. The key to accepting the fees, is understanding before hand what they are. The person selling their home, should have a copy of the CC&R’s or the Codes Covenants and Restrictions that explain in detail what the HOA have the authority to do. It is estimated that there are over 2,000 HOA’s in the St George Washington County area. This means that most subdivisions probably have some type of regulating body. If there is an HOA involved in the sell of a home it should be declared in the transaction paperwork. The Utah Association of Realtors form 10 addresses HOA’s. This document is entitled “Sellers Property Condition Disclosure”. In this document the seller of a home is required to list any deficiencies with the property. They are also asked specific information regarding any HOA’s, and fees associated with them. Most Title Companies have information about HOA’s and who to contact for more specific information about them.
Many HOA’s are handled by Property Management companies. They conduct the meetings, collect fees, and oversee the day to day affairs of the subdivisions they handle. The arrangements with Property Management companies are not all the same so it is important to get a copy of the HOA minutes and CC&R’s to get a clear picture of their role.