What You Should Know About HOAs

I would have to say that the vast majority of housing communities and condos have HOA's in and around Myrtle Beach.

My clients are split 10 - 50 - 40. 
What does that mean?
There are 10-percent of my clients coming into the area from somewhere else that vehemently DO NOT want an HOA. The conversation goes something like this when the option of a homeowner's association is mentioned:

"No HOA! Period end of story, don't even bother to show me homes with an HOA...  don't like them, don't want them, no thank you."

Fifty-percent of my clients come down from somewhere else and they have never had a home in a community with an HOA. They have some homework to do to learn about the community they are buying into. My husband and I fit into this category when we moved from Connecticut.

The other 40-percent are flexible. They know someone, or have lived in a community with an HOA before and they are not bothered by the existence of it one way or another.

What is an HOA?
 
Homeowners Associations (HOAs) are organizations designed to create and enforce rules for residential communities. While HOAs are most common in condominiums and townhomes, they are also prevalent in single-family home developments. When someone purchases a condominium or a home in a community that has an HOA, the homeowner automatically becomes a member and must pay dues in the form of monthly fees. HOAs are responsible for the general maintenance of the community, as well as rules for parking, home improvement, and amenity usage.
 
What is an HOA fee?
 
An HOA fee is an amount of money that a homeowner must pay to the association each month. The association is then responsible for using this money to maintain and improve properties in the community, as well as provide amenities for residents. HOAs typically cover the costs of landscaping, clubhouses, swimming pools, garbage disposal, water/sewage, and possibly security. A portion of the money is placed into a reserve fund, which is set aside in case significant repairs or upgrades are needed. The fee amount ranges from location, property type, and service. Homeowners can expect to pay anywhere from $100-1,000; however, the average amount is in the $200-300 range. A good rule to remember is that the more amenities a community offers, the higher the fees.
 
Are there downsides?
 
The main criticism of HOAs is the fee amount, which homeowners are sometimes reluctant to pay. Adding an extra $200-300 a month to mortgage payments, taxes, and utilities can create more pressure on the homeowner’s finances. If a homeowner fails to make the monthly payments, the HOA has the authority to take action depending on the contract between the homeowner and HOA. Action can include a lawsuit, a lien on the property, or foreclosure to collect payments. Homeowners may also find the rules to be restrictive since HOAs often regulate the exterior colors, landscaping, fencing, and detached storage of the home. An HOA can provide desirable amenities for residents and manage the neighborhood so it is a safe and welcoming environment, but at an additional cost to homeowners.