Perhaps the largest and most important purchase that you will ever make is that of your home. Not only are you choosing the place that you will live in for a good portion of your life, but you are also making an investment that will affect your future as well as the future of your family. To ensure that your home is a smart investment, consider buying a home within an HOA. But, how exactly does an HOA increase property values?
Can an HOA Increase Property Values?
Buying a house is no small decision. It is a huge investment — one that should be considered at great length. When you go hunting for a home, you should not jump to purchase the first one you see. Remember that you want your investment to increase in value over time. But, how exactly do you do that with a house? The answer is staring right at you.
Purchasing a home that is a part of a homeowners association can be an excellent use of your hard-earned money. But, can an HOA increase property values? They absolutely can! Being part of an HOA is a huge asset when thinking about the future.
How Can an HOA Affect Property Values?
Before we dive in, you may be wondering what the purpose of an HOA is. Why do homeowners associations exist in the first place? And what do HOAs do exactly? To put it simply, an HOA exists to maintain the community with the goal of increasing property values.
An HOA takes care of all common areas, using dues collected from residents to repair, maintain, or replace community amenities. Other than that, an HOA governs and runs the community itself.
With so many jobs to do, the HOA effect on property values is undeniable. Here are several reasons why HOAs can increase the property value of your home:
1. Creating a Desirable Community
One of the best features of a homeowners association is that the presence of an HOA creates a community that can be the envy of other neighborhoods. In this type of community, everyone pitches in so that you can enjoy amenities that you would otherwise not have access to, such as a community pool or tennis court.
Furthermore, within an HOA community, strangers turn into neighbors, who then become like family. The presence of a safe, fun, and tight-knit community can be a huge draw for potential buyers and can help improve the property value of your home.
2. Formulating a Beautiful Neighborhood
Even if a home itself is beautiful, if the neighborhood around the home is unkempt, property values can decrease. Homeowners associations exist in part to beautify the entire neighborhood.
Although too many rules can sometimes be a bad thing, the bylaws and governing documents of an HOA exist to make the quality of living better for everyone who lives in the community. These rules result in cleaner yards, freshly painted buildings, and a reasonable (but not excessive) amount of uniformity leading to a pleasing environment and higher property values.
3. Maintaining Homes Inside and Out
With the bulk of outside maintenance taken care of by the HOA, homeowners have more free time and money to focus on updating and beautifying the inside of their properties. You do not have to worry about pressure washing the pavement because the association does that for you.
An HOA also handles landscaping and even shoulders the burden of trash removal, usually contracting vendors to do these jobs. Each improvement that is completed, whether on the outside or inside of the property, increases property values and HOAs take care of many of those tedious tasks for you.
4. Offering Emergency Services
It is hard to deal with emergencies on your own. Something like flooding or fire can greatly cause damage to your property, especially when not addressed immediately. An HOA can help with something like this by providing emergency services. This kind of quick assistance can limit the damages and prevent it from worsening, thus, keep the value of your home from plummeting in a single swipe.
5. Enforcing Rules and Regulations
While it may not seem like it to some, an HOA’s rules and regulations are there to keep property values up.
Everything from what color you can paint your home to where you can park your vehicles — these rules and restrictions exist to maintain a certain image for the community.
It is even part of an HOA’s job to resolve disputes between neighbors so that everyone can live in perfect harmony.
6. Even Science Says So
If you are still on the fence about buying a home within an HOA, let science make your decision for you. According to a study conducted at George Mason University, an HOA can increase property values. In fact, the study found that, on average, a house within an HOA community sells for about 5% to 6% higher than a house that does not belong to one.
By going with a home in an HOA neighborhood, you can enjoy better profits by selling your house for a higher price. Just make sure you pay your dues on time to avoid having a lien filed against you.
Make a Smart Decision Today
Can an HOA increase property values? The short answer is yes. One of the biggest reasons that an HOA exists is to protect the property value of your home by ensuring that your home and the homes around your property remain beautiful and desirable all year round.
By purchasing a home that is part of a homeowners association, you guarantee the continuing beauty of your home and neighborhood. When prospective buyers see the charm of your neighborhood, more and more people will live there, driving your property value higher.
There are many houses with high property values Charlotte NC has to offer. If your HOA is having trouble maintaining home values in Charlotte NC, it may be time to consult with an HOA management company like us. Feel free to give us a call anytime.
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