For many people, the term “homeowners association” (or “HOA”) triggers a variety of negative images — from grumpy letters about the appearance of one’s yard to complaints about the pool upkeep and arguments over whether your landscaping meets community guidelines, not to mention the additional fees you pay for these “services.” However, these images don’t reflect the whole story of what an HOA does and why it exists. Whatever your presumptions, if you are a first-time homebuyer in Atlanta, chances are you are going to deal with a homeowners association — and if you understand what HOAs are about and how they work, it very well may work to your advantage.
What is an HOA?
Put simply, an HOA is an organization (usually incorporated) that is established to see to the needs of the community, subdivision or complex for which it is organized. The HOA collects dues from each homeowner that are used for community-related expenses (e.g., upkeep of pool or community areas, neighborhood security, community events and sometimes external maintenance or property taxes). It may also establish certain rules and guidelines for homeowners as to property appearance and enhancements to keep a uniform standard through the neighborhood.
Condo/townhome HOAs versus single family community HOAs
A homeowner’s association may assume different responsibilities based on the type of property and complex. For example, a neighborhood HOA overseeing a subdivision of single family homes will primarily take care of community grounds and amenities, oversee community activities, etc. but will have less oversight or control over individually owned plots of land. By contrast, with a condo or townhome HOA (more accurately called a “condo association”), individual homeowners own the interior airspace and possibly the land beneath their unit, but the community collectively owns the grounds. In this case, the condo HOA is usually responsible for upkeep of all external areas, including community grounds and building exteriors. The HOA may pay property taxes on the entire grounds collected from HOA fees.
What Do First-Time Buyers Need to Know About Working with an HOA?
The first thing to know about an HOA is that despite what you may have heard or assumed, this organization ultimately exists to protect your interests in whatever property you may be purchasing. Yes, there are fees and rules and guidelines, and perhaps even the occasional “grumpy” letter, but without the HOA, your neighborhood or complex might be a much less desirable place to live. When buying a home in an HOA-covered complex or subdivision, here are some tips for dealing successfully with that organization.
- Ask for a copy of the HOA covenants and bylaws before making an offer. Read the rules, find out what’s covered and make sure you’re okay with it before deciding to buy.
- Know what you are paying for. If there is no clear breakdown of costs and fees, ask for one. Some prospective homebuyers are pleasantly surprised to find out what improvements and repairs may already be covered by their HOA fees.
- If you notice an issue with a house, townhome or condo you’re considering, see if the damage is covered by the HOA. If the bylaws make the HOA responsible for it, ask for documentation in writing that legally obligates them to fix it. You can save thousands of dollars in this way simply by asking the HOA to do what your fees will already be covering.
- Consider getting involved with your HOA. Homeowner associations are typically run by volunteers from the neighborhood. Getting involved with the board helps you have a stronger voice in your community, so your ideas get heard.
Between the diversity of neighborhoods and the sheer size of our city, buying a home for the first time in Atlanta can be a daunting prospect. Our expert agents can help narrow the search to help you find the perfect home. Give Atlanta Fine Homes Sotheby’s International Realty a call at 404.948.4812.