Why Homeowners Associations (HOAs) Increase Property Value
January 07, 2007 by
When I first started looking for my house, I did not want to live in a community that had a homeowners association (HOA). After all, nobody was going to tell me what color petunias I could plant in my yard.
Boy, was I wrong!
According to the Community Associations Institute (CAI (CAI.org)), some 57 million Americans live in association-governed communities (eg, those with homeowners associations). And, 78% of them believe that their HOA "protect and enhance" their property value. Only 1 in 100 believed their
association hurt property value.
Following are three key ways Homeowners Associations (HOAs) increase property value:
1. Neighborhood Beautification: Have you ever driven through a neighborhood where a car was propped up on cinder blocks in one yard, mold was growing up the side of a house, yet another was painted a ghastly color, and a fence was falling down the other across the street?
Homeowners associations prevent this type of decay via covenants that outline how a property should be maintained.
When I bought my house, the covenant document (document that details the rules and regulations of a homeowners association) was about 50 pages long. It outlined everything from how often the grass should be cut (approximately every two weeks in the summer) to where I could park my car (in the garage or driveway, NOT on the grass).
Because you know going in what is expected of you, you can assess whether the community is right for you. After reading my covenants, I knew it was a community I could live in quite happily.
2. Neighborhood Conformity: Most homes in a subdivision with a homeowners association look similar. That's why subdivisions are called planned unit developments, or PUDs. When a developer decides to build a subdivision, they usually have 5 or 6 architectural plans from which you can choose.
This creates a uniform look for the development. As much as we Americans enjoy our individuality, many of us are drawn to subdivisions for just this reason. Homeowners associations help preserve this uniformity.
Boy, was I wrong!
According to the Community Associations Institute (CAI (CAI.org)), some 57 million Americans live in association-governed communities (eg, those with homeowners associations). And, 78% of them believe that their HOA "protect and enhance" their property value. Only 1 in 100 believed their
Following are three key ways Homeowners Associations (HOAs) increase property value:
1. Neighborhood Beautification: Have you ever driven through a neighborhood where a car was propped up on cinder blocks in one yard, mold was growing up the side of a house, yet another was painted a ghastly color, and a fence was falling down the other across the street?
Homeowners associations prevent this type of decay via covenants that outline how a property should be maintained.
When I bought my house, the covenant document (document that details the rules and regulations of a homeowners association) was about 50 pages long. It outlined everything from how often the grass should be cut (approximately every two weeks in the summer) to where I could park my car (in the garage or driveway, NOT on the grass).
Because you know going in what is expected of you, you can assess whether the community is right for you. After reading my covenants, I knew it was a community I could live in quite happily.
2. Neighborhood Conformity: Most homes in a subdivision with a homeowners association look similar. That's why subdivisions are called planned unit developments, or PUDs. When a developer decides to build a subdivision, they usually have 5 or 6 architectural plans from which you can choose.
This creates a uniform look for the development. As much as we Americans enjoy our individuality, many of us are drawn to subdivisions for just this reason. Homeowners associations help preserve this uniformity.
This is an article for homeowners who wish to make their homes look great and also wish to increase their homes value.
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