One of the biggest financial decisions you’ll make in your life is buying a home. Something you’ll often encounter is homeowners associations (HOAs). Buying a home that is part of an HOA can be a great investment for your hard-earned money if your HOA is run properly. But, did you know that an HOA can also increase your property values? The HOA exists to help maintain the community to increase neighborhood and property values.
Here are several ways your HOA can increase the value of your home:
1. Increasing the desirability of your neighborhood
Not only do HOAs allow for strangers to turn into neighbors, the presence of a safe, fun, and tight-knit community can also be a huge draw for potential buyers. In these communities, the HOA can help create amenities like pools, tennis courts, and parks for everyone to enjoy.
2. Making sure your neighborhood is beautiful
When you move into a home in an HOA community, you’ll come across important documents – they include the rules, regulations, bylaws, and other governing documents. Within these rules, there are specific regulations on how your property should appear. This helps prevent that one home in the neighborhood with the unkempt lawns and peeling paint and results in your neighborhood having cleaner yards, freshly painted buildings, and a reasonable amount of uniformity.
3. Maintaining homes inside and out
Now that you don’t have to worry about how your community looks, you can focus more time and money on updating the inside of your home. Each improvement you make to your home can help increase property values and HOAs can take care of many of those tedious neighborhood tasks for you.
4. Offering emergency services
An HOA can help by providing emergency services when emergencies like flooding or fire can damage your property.
5. Enforcing rules and regulations
Those rules and regulations that may seem annoying can help keep your property values up. From paint colors to parking regulations, these rules exist to maintain a certain image for your community. The HOA documents play a big role in how well your community runs.
A recent study conducted by George Mason University found that a home within an HOA community sells for about 5 to 6% higher than a house that doesn’t belong to one. The key thing to remember is that your HOA is there to increase your property values.
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