Home Buying in Plano>Question Details

Bruce Lynn, Real Estate Pro in Coppell, TX

Does HOA add value?

Asked by Bruce Lynn, Coppell, TX Mon Jul 9, 2012

Overall do you think neighborhoods with HOAs in Plano add value? If you buy the same priced house with same features today what do you think the comparison would be in neighborhoods with HOAs vs those without?

Help the community by answering this question:

Answers

10
Hunt Holdridge’s answer
We were just talking about this in the office. I've been receiving feedback from investors, that this is becoming more of a desired necessity. Outside of property management solutions - HOA's help maintain the value. By regulating the entire neighborhood and having single dwelling management in assistance, the values are projected for a healthy run with more stable margins.

Cheers!
Hunt

--
Hunt Holdridge
HUNTAHOME, LLC
Office: (214) 866-0050
Mobile: (214) 457-1639
Email: hunt@huntahome.com
Web: http://www.HUNTAHOME.com
1 vote Thank Flag Link Tue Jul 10, 2012
HOA's can be a nuisance, but I believe they add value.

The HOA's help to maintain the appearance of the neighborhood. The HOA maintains common areas including community entries and parks. If you want a neighborhood pool, you will need an HOA to maintain it.

HOA's also add value by enforcing community standards. It helps to have an HOA in place to make sure that people maintain their yards, repair their fences, and take care of their property in general. Sometimes an HOA will go overboard, and those stories get a lot of attention, but most HOA's are just trying to keep the community looking nice, which helps property values for the whole neighborhood.
0 votes Thank Flag Link Wed Jan 2, 2013
There are different ways to look at HOA

1. The condition of the neighborhood is monitored. And when there are things that need attention, such as broken fences, the HOA can remedy the problem. Doing so, the HOA can preserve the condition and marketability of the neighborhood.

2. Some homeowners may not have the discipline to save up for future repairs. So think of the HOA as forced savings. When some repairs are necessary, the HOA will dip into those savings to do the repairs.

3. If some neighbors are less conscientious about upkeep of their yard, etc. the HOA can serve as the neighborhood's enforcer who can persuade the neighbor to comply with neighborhood standards

4. Uniformity, conformity, compliance.....if someone puts up a display that doesn't conform to the neighborhood's rules, etc., the HOA can also manage the process to have the neighbor comply and remove the offending display.

Personally, I will draw the line at the HOA forcing the removal of the American flag.
0 votes Thank Flag Link Mon Dec 17, 2012
Emphatically NO. When we sell our house in a few years, we will be looking for a NON HOA neighborhood.
Problem is that HOAs too often focus on petty things and can border on harrassing homeowners.
In the last home i owned, i received letters from HOA because of the types of flowers i planted. Not weed but FLOWERS, annuals, you know the kind that die off anyway each year. Apparently the HOA didn't like i had too many flowers of one color. I changed the colors, then they didnt like the types of flowers- i had period. The only thing that made them happy? So-I ripped out all the flowers in my front yard and replaced them with FAKE flowers. Not knowing my flowers were fake, they were finally happy with my selection. PATHETIC.
They complained about our AMERICAN FLAG on a pole. YET they had no problem with people littering their front lawns with college signs and other kind of decorative flags.
We had company (family) stay over for two days and they complained about the car (a nice new one) being parked in front of our home.
Eventhough we had professional gardner, lawnmowing company at the time. They complained about our grass being too tall, then being too short, not being green enough then being too green (the wrong type of grass).
Bottom line-- we will never move into another HOA neighborhood and i know many many people that given the choice again, will choose non-HOA.
0 votes Thank Flag Link Mon Dec 17, 2012
My opinion is that HOAs create value! I once had a client who did not want a home that was part of an HOA, but as I showed them around the area, the quickly decided that purchasing a home was in their best interests. Bruce makes a great point; it is usually obvious which neighborhoods are part of and HOA.
0 votes Thank Flag Link Fri Jul 27, 2012
I guess what I've been thinking about for example in Plano.... is that I can almost immediately tell in a 20 year old neighborhood if there is an HOA or not.
The neighborhoods just look different.

Usually the ones with the mandatory HOA are a little sharper, crispser, yards look better, less vehicles, a little more uniform, and I'm thinking this helps values.

In the neighborhoods with HOAs on average it seems like there is less care overall, more overgrown yards, yards with crazy landscaping, just feels a little more run down, and I'm thinking this hurts values.
0 votes Thank Flag Link Tue Jul 10, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Don’t know about value but it can lower the amount of loan they can get. If their ratios are on the fence DU could switch them from Approve/Eligible to Approve/Refer which none of us want to see.

I am telling people how to un-condo their condo and then decide if they want an HOA, link to my facebook page on the subject below.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Tue Jul 10, 2012
From a buyers standpoint, I have never yet had a buyer excited about a home with an HOA. However, I have had many express disgust for HOA's. The HOA alone does not seem to deter most buyers and I think most buyers do not add value or detract value from a home merely because of the presence of an HOA.

I think in this regard, it's similar to gas prices. In this anology, most buyers will buy the vehicle they want and complain about gas prices, but the price of gas does not make one vehicle more desirable over another in the eyes of most buyers.
0 votes Thank Flag Link Tue Jul 10, 2012
I think HOAs add value especially if they offer extras such as pools, tennis courts, pavilions and social functions that a non HOA community might not have. Beyond this they usually provide another layer of enforcement to ensure conformity with restrictions and codes. (Conformity helps values.) Ask for the HOA budget and see where your money will be spent. If it goes toward valuable services that you would enjoy, buy in!
0 votes Thank Flag Link Mon Jul 9, 2012
Great Question-I don't think anyone has ever asked me this question. This is Roxanne DeBerry with "The DeBerry Team" of Keller Williams Realty Plano. When I do a Comparative Market Analysis on a home the HOA is not considered in the value of the property. An HOA may be valuable to those who are looking for a home if that is one of their considerations. With other people they may find an HOA more of a nuisance than a value depending on the restrictions. If you are looking for a home or just have some additional questions please don't hesitate to contact me. Tbank you for allowing the realtor community to assist you with your inquiry.

Roxanne
0 votes Thank Flag Link Mon Jul 9, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Home > Texas > Collin County > Plano > Home Buying in Plano > Question
Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer