It is likely you will end up dealing with HOA fees when buying your North Metro Denver Home. HOA stands for Home Owners Association. Most townhomes, condos and many single-family homes are part of an HOA. It’s good to familiarize yourself with this info on HOA costs and fees when buying Your North Metro Denver Home!
An HOA creates rules for the benefit of homeowners. HOAs will then collect monthly, quarterly, or annual dues. Fees can differ for each community so make sure to ask questions. These fees can be used to pay for upkeep of the common areas. All residents are equally responsible for maintaining the common areas. These common areas can include hot tubs, tennis courts, clubhouses, etc. They will have to provide maintenance for snow removal, landscaping, roads, fitness rooms, and on and on. There are so many types of “common areas” that they can charge you for, so I would educate yourself when looking in specific areas. The Home Owners Association can also accrue capital reserves on homeowners to pay for unexpected maintenance repairs.
HOAs help maintain the quality of life for the community’s residents and protect property values for all owners. Unfortunately, there will be rules you need to follow if you are living somewhere with an HOA.
I also suggest looking at the difference between a place with HOA fees vs one without. One with HOA fees could actually end up costing you as much as the house you thought you couldn’t afford!
Some HOA Cons
If there’s a major expense, like a new roof for example, and the HOA doesn’t have enough funds from HOA’s reserves, then they can charge you extra to provide said maintenance. This can even be in the thousands range. Always be prepared. Another con can include lack of customization. Living in a home that has the HOA, may alter whatever customization you want to add.
HOA Covenants are certain rules that all residents must follow. These can also be called conditions or restrictions. An example could be whether you can have a satellite dish or the type of pets you have. Some of these covenants can be good though. They could prevent your neighbor from having a banged up old car in their front yard or painting their door bright yellow with zigzags. But this could also prevent you from something you really want to do.
If your home is in a subdivision with individual homes, they could control what color you paint your house or if you have an RV in your driveway. Always learn the HOA rules and make sure the home you’re going to buy is in compliance with the them.
HOAs can also present a “first right of refusal” to any property under contract. It is mandatory for the HOA documents to be presented to the buyer once under contract. I recommend having someone read and review these documents with you.
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