Buying a home is about more than finding the right floor plan, location, and price. If the property is part of a homeowners association (HOA), you’re also buying into a set of community rules, shared responsibilities, and ongoing costs.
For some homeowners, an HOA can make homeownership easier by taking care of certain maintenance and providing shared amenities. For others, the rules and additional expenses may not fit the way they want to live.
The key is understanding what you’re buying into before you make an offer.
At Rooted Realty Group, we believe buyers should feel confident not only about the home itself, but also about the responsibilities that come with owning it. Here’s what you should know about HOAs before purchasing a property.
What Is a Homeowners Association?
A homeowners association, or HOA, is an organization created to manage and maintain a community and establish rules for the properties within it.
HOAs are common in townhome and condominium communities, but they can also exist in neighborhoods made up of single-family homes.
An HOA is typically governed by a board of directors made up of homeowners within the community. Depending on the association, the HOA may also hire a professional management company to handle things like collecting dues, coordinating maintenance, enforcing community rules, and managing association records.
When you purchase a property within an HOA, membership is generally part of owning the property. That means homeowners are responsible for following the association’s governing documents and paying required assessments or dues.
What might an HOA regulate?
Every HOA is different, but rules may address things such as:
- Exterior paint colors and architectural changes
- Landscaping and lawn maintenance
- Fences, sheds, or other exterior improvements
- Parking and vehicle restrictions
- Pets
- Noise and quiet hours
- Holiday decorations or exterior displays
- Use of shared amenities
- Leasing or rental restrictions
- Maintenance responsibilities
- Satellite dishes, signs, or other exterior items
The important thing to remember: There is no universal set of HOA rules. Two neighborhoods can have completely different requirements, so buyers should review the specific documents for the property they are considering.
What Are the Benefits of an HOA?
An HOA isn’t automatically a good or bad thing. Whether it’s a benefit depends largely on what you want from homeownership.
For some buyers, the convenience and consistency an HOA provides can be a major advantage.
Maintenance and convenience
Depending on the community, your HOA dues may cover some maintenance that you would otherwise have to handle yourself.
This could include things like:
- Lawn or landscaping maintenance
- Snow removal
- Exterior building maintenance
- Common-area maintenance
- Trash services
- Private roads
- Shared utilities
- Exterior insurance in some condominium communities
Exactly what is covered varies, so don’t assume that an HOA fee means “everything is taken care of.”
Shared amenities
Some HOA communities offer amenities that individual homeowners might not otherwise have access to, such as:
- Swimming pools
- Clubhouses
- Fitness centers
- Walking trails
- Private parks
- Playgrounds
- Lakes or recreational areas
If you actually use these amenities, the HOA dues may provide value beyond simply maintaining the neighborhood.
Community standards
HOAs often establish standards for how properties are maintained and modified.
For some homeowners, those standards provide peace of mind that the neighborhood will maintain a certain level of appearance and consistency.
A structured process for community maintenance
An HOA can provide an organized system for handling shared repairs, maintenance, and expenses.
Instead of individual homeowners having to coordinate everything themselves, the association may collect dues and use those funds to manage common responsibilities.
What Are the Potential Drawbacks of an HOA?
Of course, there are two sides to the equation.
Before purchasing an HOA property, consider whether the association’s rules, costs, and structure fit your lifestyle.
HOA dues are an additional expense
Your HOA dues are generally in addition to your mortgage payment, property taxes, homeowners insurance, and other costs of owning a home. HOA dues are also typically paid separately from your mortgage payment.
That means you should include them when determining what monthly housing payment fits your budget.
Rules can limit what you do with your property
Want to paint your house a certain color? Install a fence? Build a shed? Change your landscaping? Rent your property?
Depending on the HOA, you may need approval—or the change may not be permitted at all.
For buyers who value maximum freedom to modify their property, HOA restrictions may be an important consideration.
HOA fees can change
Today’s HOA dues aren’t necessarily the same amount you’ll pay five or ten years from now.
Insurance, maintenance, utilities, landscaping, repairs, and other operating expenses can change over time, which can lead to increased dues.
Special assessments can happen
This is one of the most important things buyers should understand.
An HOA may need to collect a special assessment when it faces a large expense that isn’t adequately covered by its regular budget or reserve funds.
For example, a community could face a major roof, siding, pavement, structural, or other common-area repair.
A special assessment can mean an additional expense for homeowners—sometimes a significant one.
That’s why looking at the current HOA fee alone doesn’t tell the whole story.
How Much Do HOA Fees Cost?
There isn’t one standard HOA fee.
The amount can vary significantly depending on:
- Location
- Type of property
- Age and condition of the community
- Number of homes or units
- Amenities
- Maintenance responsibilities
- Insurance costs
- Whether exterior maintenance is included
- Whether utilities or other services are included
- The association’s financial needs
Some associations may charge relatively modest dues, while others can cost several hundred dollars per month or more. The Consumer Financial Protection Bureau notes that HOA and condo dues can range from a few hundred dollars a month to more than $1,000, depending on the property and association.
But the cheapest HOA isn’t necessarily the best deal.
Imagine two communities:
Community A: $100/month HOA fee, but homeowners are responsible for most exterior maintenance.
Community B: $300/month HOA fee, but the association covers landscaping, snow removal, exterior maintenance, and other shared expenses.
The $300 fee may initially look much higher, but you’re not necessarily comparing apples to apples.
That’s why buyers should ask:
“What exactly does my HOA fee cover?”
Don’t Just Look at the HOA Fee—Look at the HOA’s Finances
One of the biggest mistakes a buyer can make is looking at the monthly HOA dues and stopping there.
The financial health of the association matters.
An HOA collects money from homeowners to pay for current expenses and, ideally, to prepare for future repairs and maintenance.
What are reserve funds?
Reserve funds are money set aside for future expenses and major repairs.
A financially healthy association should have a plan for larger expenses rather than relying entirely on homeowners to pay for them when they happen.
When reviewing an HOA, ask about:
- Current reserve funds
- The association’s budget
- Recent financial statements
- Planned major repairs
- Recent or proposed dues increases
- Current or anticipated special assessments
- The association’s insurance coverage
- Whether there are significant outstanding owner balances
- Recent board meeting minutes
Meeting minutes can be particularly helpful because they may reveal discussions about upcoming repairs, complaints, financial concerns, or projects that aren’t obvious from simply looking at the current dues.
What Should You Review Before Buying an HOA Property?
Before you purchase a home in an HOA, read the documents.
It may not be the most exciting part of buying a house, but these documents can tell you a lot about what ownership will actually look like.
Depending on the type of property and association, you may want to review:
1. CC&Rs
Covenants, Conditions & Restrictions (CC&Rs) establish many of the rules and restrictions that apply to the property.
Pay particular attention to anything that affects how you plan to use or modify the home.
2. Bylaws and HOA rules
These explain how the association operates and may contain additional community rules.
3. Current HOA dues
Find out:
- How much are the dues?
- How often are they paid?
- What do they cover?
- When are they due?
- Have they increased recently?
4. Special assessments
Ask whether there are any:
- Current special assessments
- Approved upcoming assessments
- Proposed projects that could result in an assessment
5. HOA budget and financial statements
These can provide insight into how the association manages its money and prepares for future expenses.
6. Reserve information
If available, review the association’s reserve information and plans for major future expenses.
7. Recent HOA meeting minutes
These can provide a look at what’s actually happening within the community—not just what the official rules say.
8. Insurance
For condos and some other HOA properties, it’s especially important to understand what the association’s master insurance policy covers and what insurance you are responsible for obtaining yourself.
9. Rental restrictions
If you might ever want to rent the property, check the HOA’s rules before buying.
Some associations restrict rentals, limit the number of rental units, or have other requirements.
10. Pet restrictions
Don’t assume your pets will automatically be permitted.
Look for restrictions involving:
- Number of pets
- Types of animals
- Breed restrictions
- Weight limits
- Fencing requirements
What Does the HOA Maintain—and What Do You Maintain?
This is an especially important question with townhomes and condominiums.
Who is responsible for the roof?
Who maintains the siding?
Who handles snow removal?
Who maintains the lawn?
Who repairs the driveway?
Who pays for exterior painting?
The answer isn’t always the same from one community to another.
Before buying, make sure you understand the division of responsibilities between you and the HOA.
A lower-maintenance property can be a great fit—but only if you understand exactly what “maintenance-free” actually means.
Can an HOA Affect Your Ability to Sell the Home Later?
Potentially, yes.
The HOA is part of the property, so future buyers will also be evaluating the association’s dues, rules, financial health, and maintenance responsibilities.
Large dues, significant special assessments, restrictive rules, or financial concerns may affect how attractive a property is to some future buyers.
That’s another reason to look beyond the home’s finishes and floor plan when you’re purchasing an HOA property.
You’re not just buying the house. You’re buying into the community, too.
A Note for Nebraska Buyers
If you’re purchasing a condominium in Nebraska, state law provides specific requirements regarding information that must be furnished to a purchaser before conveyance. For qualifying condominium resales, that information includes items such as the declaration, bylaws and rules, current assessments and unpaid assessments or special assessments, certain financial statements, the operating budget, information regarding association insurance, and disclosure of certain pending or threatened litigation.
Nebraska law also contains separate requirements for public-offering statements for certain condominium purchases from a declarant.
Because HOA and condominium requirements can depend on the property type and circumstances, buyers should review the applicable documents and consult the appropriate professionals when legal or financial questions arise.
There’s no one-size-fits-all answer.
An HOA may be appealing if you value less exterior maintenance, shared amenities, neighborhood standards, and having an organized system for managing common areas.
On the other hand, you may prefer a property without an HOA if you want more freedom over your property, fewer ongoing fees, and fewer community restrictions.
The important thing isn’t whether a home has an HOA.
It’s whether that particular HOA works for you.
Before you make a decision, look beyond the monthly fee. Read the rules. Understand what’s included. Review the finances. Ask about upcoming projects and assessments. And make sure the HOA’s responsibilities and restrictions fit the way you want to live.
Buying a Home in Central Nebraska?
At Rooted Realty Group, we’re here to help you understand the whole picture—not just the four walls of the home.
Whether you’re looking at a townhome, condo, or single-family home in an HOA community, we’re happy to help you identify the questions to ask and the information to review as you move through the buying process.
Have questions about buying a home with an HOA? Let’s talk.