HOAs...Good Witch or Bad Witch???

When I get questioned about HOAs, I think of the scene in the "Wizard of Oz" movie when Glinda asks Dorothy..."Are you a Good Witch or a Bad Witch?" Of course Dorothy was neither...she was just plain Dorothy. Well that's the way I feel about Home Owners Associations (HOAs).

I can't tell you how many times I'm on a call with a client and we're going through their list of 'wants' for their new home. Price range up to $350k, 4 bedrooms, 2-3 baths, 3 car garage, good school district, newer home. We are "trucking right along" and I'm thinking of several communities that will be a great fit...then they add. "Oh by the way I refuse to live in a neighborhood with a Home Owners Association."

I immediately have to take a deep breath. The dilemma I am facing is that after talking to my clients, in some cases for hours, and trading emails etc, I know that it will be extremely difficult, in some cases, impossible, to meet their other wants without considering homes that are in neighborhoods with HOAs.

I immediately (but gently) start the questioning. I know it's important to them so I'm not going to in any way downplay their feelings about HOAs. But I don't want to jump to the conclusion they won't buy in an HOA because based on everything I've learned about them, I can think of several communities they may love...but they all have HOAs.

What I find is that many times the opposition is simply money. Frequently my clients are coming in from out of state and, being new to the area, they are assuming our HOAs cost the same as their HOA's 'back home', $250-450 dollars a month and up. When they find out that our fees average more in the $50/month range, they settle down and are open to look at a broader set of neighborhoods.

However...there are other times that's it's not just about the money. My clients make it clear that they don't want anyone telling them what they can and can't plant in their yard. What colors they can or can't paint their homes. They don't want to ask permission or put some plan in front of an architectural committee when they add that room addition. And...I will be the first to admit...a strong HOA will do all of the above.

Don't get me wrong...if my client doesn't want to live in a home with an HOA then I will set out to find them a home in an neighborhood that doesn't have an HOA. But I will do so, while at the same time explaining that as pesky and irritating as an HOA can be sometimes, they do have their purpose.

For many, like myself, who don't want to be confrontational with others, especially a neighbor, it's nice to have someone else tell your neighbor to get out there and weed his flower beds. Or to tell the guy down the street to move the old rusty Truck that has been sitting on blocks in his driveway for four weeks now. Or to tell the family that lets their four dogs run all over the neighborhood, to fix their back fence.

Let's face it...we've all been there and seen it happen. Lovely house, well maintained, looks perfect in the virtual tour. Then you drive up with a client and it's sitting next to a house that looks like it has been vacant, or worse, has had five families all living in it at once, for months. I've had many a client not even want to go into a house because of what the house next door looks like. I am quick to point out to my clients that it's not limited to any particular price range. I've seen homes over $500k, gorgeous homes, sitting next to a home that had everything piled in the front yard...including the kitchen sink! (I'm not kidding!) Well HOAs can help with that.

I'm not suggesting that HOAs are for everyone. They are also not 'cure all' guaranteeing the "perfect" neighborhood. What I am saying is that while the HOAs are not the "good witch" of the homeowners story, they are not necessarily the "bad witch" either. HOAs "are what they are".

They can and do provide a valuable service to home owners. They have the legal power to put pressure on a homeowner that is not following the rules. I remind my clients that contrary to what they may think, HOAs are there to protect the value of the community. And if your home represents your single most valuable asset, don't you want some protection that the homes around you will be maintained in like fashion?

So if after hearing my rationale, after driving through communities fitting their price range, location requirements etc and looking at their options, if my clients are still comfortable purchasing a home without an HOA. Then that's the direction we will go. This may mean that they have to revise their list of 'wants'. Perhaps we're now going to have to consider an older home, versus the new construction they said they had to have, (as most new communities have HOAs). But I will be right there cheering them on. It's all about disclosure, good or bad. I want my clients to look at understand their options and feel comfortable with their decisions, not just now, but five years and more down the road.

And for those that do buy a home in a community with an HOA...my best advise... if you have a concern as to how the HOA is run...get on the HOA board! Help set the rules, and if you can't change them, maybe you'll get a better idea of why they are there.

I've moved a lot in the last 20 years. I've lived in communities with and without HOAs. By and large I have found that I prefer to be in a neighborhood with a strong HOA than one without, even if I do have to get those pesky postcards once in a while telling me to mow my lawn...