How Do HOAs Impact New Builds?
Here’s what you need to know about HOAs as you build your new custom home.
Searching for a lot and wondering if buying in an HOA community is right for you? Here’s what to look for.
What is an HOA?
First things first: what does HOA stand for? HOA stands for homeowner’s association. These entities are meant to make life easier and more pleasant for the people who live in the community, and are usually run by volunteer residents. This HOA board will oversee details in the HOA neighborhood like parking regulations, lawn care, and sometimes, architectural details. HOA living has its perks because the HOA board of directors is set out to help keep the neighborhood pleasant and positive.
Some HOAs choose to use outside management companies to keep processes smoother, but does an HOA need a management company? Not necessarily, but these are common if there are large projects that need to be completed for the whole community, like landscaping.
Overall, the purpose of an HOA is appealing, but they are not all created equal. If you’re shopping for a lot for your new custom home, look into these details to evaluate the neighborhood’s HOA.
How Much Are the Fees?
One of the most common HOA issues people run into is the fee. Many people move into a community and receive their first bill only to suddenly wonder, why are HOA fees so high? The fact is, not all of them are. Before you purchase a lot, look into the general fees for the community, and take note of anything in the contract that addresses special one-off fees for repairs and unforeseen circumstances.
What’s in the Governing Documents?
First, what are governing documents? These will outline the HOA rules and terms so that you can clearly understand the agreement on both sides. In other words, these are documents to review very closely before purchasing property!
Every HOA is different, and their unique regulations, fees, and benefits should all be outlined in the governing documents. This will also determine how easily you’ll be able to build the custom home you truly want within this HOA community.
HOAs are very common for new construction communities where one developer is controlling the building of all of the homes. In these instances, the regulations outlined by the HOA will play a large role in determining what your new construction home can look like. In many cases, the rules of HOAs are in place to encourage uniformity among the homes in the neighborhood.
If you’re looking to build custom instead of building a spec or tract home with a developer, read the governing documents carefully and look for details about community aesthetics. This is where you’re most likely to find key details that will determine what the exterior of your home and landscaping can look like within this particular neighborhood.
Because of the wide variety of fees and rules of each HOA, it’s impossible to say whether they are always good or bad. If the appearance and upkeep of your neighborhood is extremely important to you, looking for a lot in an HOA community is a good idea. Set aside time to research that particular HOA and look into how their fees work for new construction homes.
For step-by-step help finding your ideal lot and designing the custom home of your dreams, get started with Atmos today.
