Many people look to HOAs to find communities that are well-maintained. They do this because they want to buy a home and have it retain its property value or increase in the future. And when 89% of people say their HOA rules work to increase their home's value, it makes sense to seek these communities.
So, how exactly does the HOA home value increase work? Here are the benefits an HOA provides that increase real estate value.
Improve the Community
One of the primary roles of an HOA is to improve the local community. It's true that many rules restrict homeowners in what they can do. However, these rules are in place to keep the community looking nice.
As a result, you end up with a great-looking neighborhood. The neighbors enjoy being there because the location is kept up, and as a result, home values increase in the area.
Maintenance Service
Long-term property maintenance is an issue many non-HOA communities have. They rely on the city for the maintenance of common areas. And unfortunately, that doesn't always happen.
The dues paid to HOAs ensure maintenance always happens. It won't only be maintenance for when things go wrong, either. There will be planning maintenance to ensure the community always looks great.
In some areas, these maintenance services may extend to homeowners, too. HOAs can offer property services for communities that want them.
Rule Enforcement
Some neighborhoods have problems because some households don't keep up their properties. They let their grass get overgrown, make weird property renovations, and do other things that detract from the appeal of a location.
An HOA has rules to prevent this. If someone breaks the rules, an HOA has the power to send notices and fines to homeowners. As a result, property owners are more likely to keep their homes looking great and make the neighborhood more presentable.
Maintain Community Areas
There may be a local park on the outskirts of some neighborhoods, but they are the exception and not the rule. It's hard to maintain amenities in a neighborhood when there are no resources to maintain them.
The same isn't true with an HOA. Some of the HOA fees collected from homeowners will go to neighborhood amenities. Some of these include:
- Pools
- Clubhouses
- Playgrounds
- Recreational centers
These facilities will improve the area and make it more desirable for homeowners.
Increase Your HOA Home Value
HOAs add an extra expense to homeowners, so some may wonder if the HOA home value increase is real. As you can see above, living in a good neighborhood with an HOA can work wonders for increasing your home's value by making the area nicer and having great amenities. Don't hesitate to research more about HOA living and everything it offers.
If you're in an HOA community and need help managing the community, working with a professional management company may be the answer. At PMI Advisory Group, we offer management services for financial, property maintenance, and other HOA needs. Talk to our team today to learn more about what you can expect when working with us.
