Understanding HOA Fees: What Every Homebuyer Should Know

When exploring homes—whether it’s a sleek condo in the heart of the city or a newer suburban development—there’s one key factor that can sneak up on buyers: HOA fees.

HOA, short for Homeowners Association, is an organization established to maintain and manage shared spaces and community standards. These are common in condo buildings, townhouse developments, and newer subdivisions. In exchange for a monthly or quarterly fee, the HOA provides a range of services and amenities that contribute to the upkeep, safety, and overall appeal of the neighborhood.

But are HOA fees worth it? That depends entirely on what’s included and what kind of homeowner you are. Here's a breakdown of what you need to know before deciding whether an HOA is right for you.

What Do HOA Fees Typically Cover?

1. Maintenance and Landscaping
From manicured entrances and snow removal to exterior upkeep, many essential services are handled by the HOA. This means less responsibility on your shoulders and a consistently clean, presentable neighborhood.

2. Amenities
Pools, gyms, clubhouses, private parks, and even security patrols are common features in many HOA communities. If these amenities are available, it may offset costs elsewhere—like canceling that gym membership or avoiding extra security expenses.

3. Property Value Protection
An HOA often enforces neighborhood standards. That means no overgrown lawns or broken-down cars in the yard next door. This visual consistency helps protect home values and keep communities desirable.

4. Shared Responsibilities and Utilities
In condos and townhomes, HOA fees often cover things like roof repairs, siding, and insurance for the structure. Some even include water, sewer, trash, or cable—expenses you’d be paying anyway.

What Buyers Should Ask Before Buying Into an HOA

Before you fall in love with a home, make sure to ask:

• Does this home have an HOA?

• What are the current fees, and how often are they paid?

• What exactly is included in the fee?

• Are there upcoming assessments or planned increases in dues?

• Is the HOA saving for major repairs or replacements?

• Are there move-in/move-out or capital reserve fees?

These questions can uncover hidden costs or future expenses you’ll want to be ready for.

Don’t Overlook the Rules

Every HOA has a set of rules known as CC&Rs (Covenants, Conditions & Restrictions). These documents outline what you can and can’t do with your property—like painting your front door a bold color, parking a commercial vehicle in the driveway, or having short-term rentals or multiple pets.

Reviewing these rules before making an offer is essential, especially if you have specific needs. In some cases, homeowners have even worked with HOAs to adjust policies when necessary—but that’s not always guaranteed.

What Happens After You’re in Contract?

Once under contract, expect a large packet of HOA documents to review, including bylaws, budgets, and meeting minutes. These can give you insight into how well the association is run, how prepared it is for future expenses, and whether there’s any community drama or instability.

If you're unsure about what you're reading, it's okay to bring in a real estate attorney to help interpret the documents—especially for larger, more complex HOAs.

Is an HOA Right for You?

There’s no universal answer. Some buyers love the low-maintenance lifestyle and amenities that come with HOA living. Others prefer full freedom over their property and want to avoid the rules. Just keep in mind: not all HOAs are alike. A small 6-unit association will function much differently than a 100-home community with a full-time manager.

The key is understanding what you’re paying for and how it fits into your budget and lifestyle.

Bottom Line

HOA fees aren't just an added cost—they're a trade-off. For many, they offer convenience, protection, and peace of mind. For others, they may feel restrictive. The most important thing is to do your homework. Know what you're paying, what you're getting, and what kind of community you're joining.

Being informed is the best way to make a confident decision in today’s market.

Join Angela on this week's market update video for the full breakdown!