What Are the Pros and Cons of HOA?
When shopping for a home, one major factor to consider is whether the property is part of a Homeowners Association (HOA). While HOAs can enhance neighborhood appeal and provide valuable services, they also come with specific rules and fees that might not be ideal for every homeowner. Below, we’ll break down what an HOA is, explore its pros and cons, and guide you on what to look for before making an HOA home purchase.
What is an HOA (Homeowners Association)?
An HOA is an organization within a residential community that manages shared spaces, enforces rules, and oversees the upkeep of common areas. HOAs are typically run by a board of residents and are funded through dues paid by homeowners.
HOAs can vary significantly between communities. Some may manage private roads, gates, parks, and community beaches, while others may be more limited in scope. Certain condo HOAs may even cover utilities, building exteriors, or landscaping. Each HOA operates based on governing documents, commonly referred to as CC&Rs (Covenants, Conditions & Restrictions), which outline the rules homeowners agree to follow upon purchase.
HOA Pros and Cons
Below are the most common advantages and disadvantages of living in an HOA-managed community, broken down for clarity:
PRO: Maintained Curb Appeal and Property Values
HOAs often enforce neighborhood standards that keep yards tidy and homes well-kept, which in turn helps maintain or even increase property values.
PRO: Management of Shared Spaces and Amenities
Many HOAs take care of community spaces such as private roads, security gates, parks, clubhouses, or beaches. These shared amenities can enhance quality of life and add value to the neighborhood.
PRO: Conflict Mediation
Since all residents agree to abide by the same CC&Rs, the HOA can act as a neutral party in resolving neighbor disputes over property issues or shared responsibilities.
PRO: Community Infrastructure and Upkeep
HOAs often ensure maintenance of important infrastructure like sewer systems, wells, gates, and signage, which can relieve homeowners of those responsibilities.
PRO: Cost-Sharing for Major Projects
Rather than leaving major expenses to individual homeowners, HOAs pool resources for big projects like road repairs or security upgrades, funded through planned assessments or reserves.
PRO: Sense of Order and Uniformity
If you value consistent appearance and well-regulated surroundings, HOAs help maintain a level of order through their enforcement of guidelines and property standards.
CON: Restrictive Rules and Regulations
Homeowners must follow the HOA's rules, as outlined in the CC&Rs. These may govern everything from house color and landscaping to fence height and where you can park.
CON: Approval Required for Home Modifications
Architectural Control Committees (ACC) often require approval before making changes such as adding a deck, painting, or installing outbuildings.
CON: Monthly or Annual Fees
HOA fees vary widely depending on what’s included. Condo fees, for example, tend to be higher due to coverage of more services. These costs can be a financial burden, especially if they rise over time.
CON: Potential for Special Assessments
If the HOA does not have enough reserves for a major repair or improvement, homeowners may be required to pay additional fees—sometimes with little notice.
CON: Limited Property Use
Want to park your RV in the driveway or keep chickens in the backyard? Many HOAs have restrictions on RV storage, street parking, types of pets, and even short-term rentals.
CON: Lack of Flexibility for Unique Needs
If you have plans to use your property for a specific purpose—like hosting long-term guests, renting it out, or adding additional structures—you may find the HOA rules too limiting.
Important Things to Look For
Before buying a home with an HOA, it’s essential to review the HOA’s documents and financials. Here’s what to check:
HOA Contingency Period: Ensure your real estate contract includes a review period (typically five days) to examine HOA documents and exit the contract if needed.
Meeting Minutes: Review minutes from at least the last six months, plus the most recent annual meeting. These reveal how issues are handled, upcoming projects, and the overall tone of the HOA.
Financial Health: Look into reserves and whether the HOA has the funds to maintain roads, gates, wells, or other infrastructure. Ask about pending special assessments.
ACC Restrictions: Check whether you’ll need approval for property changes and what the guidelines are for exterior modifications, setbacks, and additions.
Usage Rules: Make sure the community allows what’s important to you—RV parking, guest parking, street parking, access to parks, short-term rentals, or livestock like chickens.
Inactive or Limited HOAs: Some neighborhoods may have CC&Rs but no active HOA enforcing them, or an HOA that only covers shared spaces without collecting dues.
Pro Tip: In competitive markets, ask your agent for HOA documents before you make an offer. This lets you review everything in advance, so you can confidently waive contingencies and make a stronger offer.
Should You Buy a Home with an HOA?
Ultimately, deciding whether to buy into an HOA community comes down to your lifestyle, priorities, and how comfortable you are with shared governance. Some communities offer amazing perks and well-maintained environments, while others may feel overly strict or financially demanding. Always weigh the pros and cons based on your long-term goals and personal preferences.
Need Help Understanding HOA Communities in Gig Harbor?
Every HOA is different—and navigating them can be tricky. Whether you're buying, selling, or just curious about how HOAs operate in Gig Harbor, I’m here to help. Reach out today for expert guidance and local insight so you can feel confident in your next move!
Buying in today’s market can feel overwhelming, especially when HOA rules and fees are involved—but you don’t have to figure it out alone. If you’re looking in Gig Harbor or the South Puget Sound area, I’ll help you break down the details, connect with trusted local lenders, and craft a smart, competitive offer. Call me, Paige, at (253) 313-4093—let’s find the right home for you, HOA or not. Reach out today!