Do Home Owners Associations tend to keep property values up?

Asked by Don Gibson, Romoland, CA Wed Jul 25, 2007

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10
J Lo, Home Buyer, California Glory, Brentwood, CA
Wed Jul 25, 2007
An HOA is a hot button issue with me as a property owner. I want an efficient management company that will do as the board bids and keeps with the original covenants as written by either the developer or the builder.

A problem arises if a management company is inefficient and attempts to place it's "guidelines" in front of the original covenants as written - something somehow gets lost over time and that is where the confusion comes in.

The HOA is a singular entitiy - OWNED by the residents. The management company is HIRED by the residents to do the paperwork and ensure that the budget is keeping a healthy balance, and of course monitor the architectural integrity of the homes within the HOA. The misconception by the residents seems to be the ownership portion of an HOA.

Somehow the HOA and the management company become synonymous with each other and that is just not the case. When this breach occurs - residents become alienated and a sort of disconnect happens.

HOA's were conceived as a way to maintain the value and appreciation of a giving tract of homes. Theoretically this can work as long as the residents keep the ownership and the management company doesn't cross the line.

Wow - that was a 'round about way of putting my two pennies in - but in short they do keep values up with well run organizations.
3 votes
Ellen Chung, , San Mateo, CA
Wed Aug 8, 2007
I personally live in a condo and our HOA absolutely helps keep our property values up because they do a great job at community organization, common area maintenance, and unit repairs. In all honesty if there were no HOA in our condo complex I think there would be more lack of action when it comes to repairing issues with the units and the community would probably a less enjoyable place to live.

However, I know some of my clients reside at condominium communities where the HOA is not as established and maintained. Although common areas may appear to be kept well, there is a lack of responsibility and response to repair requests and this ultimately results in more damage to units. So it really depends on which HOA is in charge of the condo/townhouse complex.
1 vote
Kaye Thomas, Agent, Manhattan Beach, CA
Tue Aug 7, 2007
Homeowner associations whether they are of the type that we typically think of in a condominium development or an assocaition of homes in a community development do tend to keep property values higher. Anytime you have rules governing how property will be maintained you will have higher property values. The trick of course is enforcing the rules but generally people choose to live in an assocaition with the expectation that the community will be maintained.
1 vote
Bonnie Peabo…, , La Quinta, CA
Wed Apr 2, 2008
HOA's can vary, most are controlled by volunteers of the community. When the community members care and offer to help either by supporting or working on the various committees you have good results. That is not always the case. So check around before buying, you are given the financials, minutes of previous meetings etc.
0 votes
J Lo, Home Buyer, California Glory, Brentwood, CA
Tue Aug 7, 2007
One quick add - if you are not planning on living in your next home forever; and view you home as a haven AND and investment - you need the protection an efficient HOA management company can provide.

Because YES Don, a well run HOA tends to keep property values up!
0 votes
Richard Gree…, Agent,
Tue Aug 7, 2007
YES!!! You can see this for yourself when you drive though a community that has one and then drive through one that does not.
Web Reference:  http://ListFor99.com
0 votes
Bruce Lynn, Agent, Coppell, TX
Wed Jul 25, 2007
Yes....even though they are often a pain to deal with and increasingly charging higher and higher fees, I think in the end they do protect values. I think all you have to do is go into some similiar neighborhoods with HOA and see what they look like. In my market you might find neon green houses, lawns not mowed, mismatched fences, tons of cars in the yard, motor homes parked in the drive etc. With HOA most of these things are avoided and homes tend to be better kept due to constant nagging and threat of fines and peer pressure of the HOA.
0 votes
Yolanda Tann…, , 92584, 92585, 92562, 92563, 92564, 92596, 92592
Wed Jul 25, 2007
Don,
While homes across the board are subject to market conditions, having an HOA does assist in helping to maintain the general appearance of a neighborhood. People are very visual and common areas and front yards are very apparent when Buyer's are going through neighborhoods. Sometimes a Buyer may like a home that is for sale, but, is dettered by the condition of the next door neighbors yard.

In many neighborhoods HOA's give way to a self-policing mentality among neighbors. Condition and appearance are factors which can definitely have a direct relationship to value.
Web Reference:  http://www.951homes4sale.com
0 votes
Robert Kroon, Agent, Phoenix, AZ
Wed Jul 25, 2007
Great Question Don !

I feel that as a general rule Home Owners' Associations do tend to help keep property vaules up.

Sometimes we feel that the HOA's tend to be a little restrictive when we want to do something to the property, but in the long run anything you do to keep up with the maintenance of the subdivision and homes will help your home values. Certainly if one or more owners tries to make changes that are completely out of character with the rest of the homes......at least you have some type of tool to use if attempting to reason with them does not work.

Good Luck !
0 votes
Victoria Lor…, , Fairfield County, CT
Wed Jul 25, 2007
That completely depends on the health of the organization combined with the leadership and management company. Enough funds need to be collected as a reserve for future repairs and or failures. There must be a board of directors who get along with each other and have a common goal and a management company who makes sure the grounds are maintained and dues collected.
0 votes
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