The more amenities equals dollars!In your home search you are likely to come across Homeowners Association (HOA) Fees, though it depends on where you live. And In a managed community, HOA fees are attached to the types of amenities that you have. So the more things you have in the community that makes the community nice, the more you are going to pay, or so says Patrick King and Kiesha Curtis.
Watch this episode of the Real Estate Stew to know more about HOA Fees.
Keisha: Hey everyone. Welcome to this edition of the Real Estate Stew with the what’s cooking crew. I know you’re gonna wanna tune in today because we’ve got some great questions in the pot. So go ahead, take about three seconds, grab a pen, and some paper so you don’t miss a thing.
Keisha: So, Patrick, you ready?
Patrick: I’m ready.
Keisha: Well, let’s not waste any time. What are we talking about today?
Patrick: Well, I don’t know, but let me, I think we need to get in a pot, right?
Keisha: One second.
Patrick: Phew, Kiesha. That thing’s hot.
Keisha: Alright. So what do we have? And before we pull a question, I just want to thank all of our viewers who have been so kind to send in your questions. Please note that if we do not get to your question today, just keep tuning in. Yours might be next. Alright?
Keisha: So let’s see what we’ve got.
Patrick: Mix them up, mix them up, mix them up.
Keisha: I got them coming out. Okay, I’m gonna let you do the honors, sir.
Patrick: Okay. Wow. Alright. So, Keisha, are HOA fees optional?
Patrick: That’s a good question.
Keisha: That is a great question. I question that we hear quite often. So let’s kind of talk about it. I would say that the first thing that’s important to point out is the purpose behind HOAs and HOA fees. So for those who don’t know, HOA stands for Homeowners Association. And often times they are fees that are attached to living in communities that have homeowners associations that have Deed restrictions and rules and regulations for homeowners to abide by.
Patrick: And those fees can, you know, Keisha, Guys, the range is anywhere from like 20, 30 dollars on up to several thousand dollars. I’ve seen some go as high as 2000.
Keisha: Per month?
Patrick: Yes, ma’am. Per month. And depending on the type of structure that you’re dealing with, if it’s a high rise or condo or single family, all of those are gonna have some variations in there, but that’s the range that you’re looking at. So very important to note, guys.
Keisha: Yes. With condos and town home communities, often times the HOA fees are gonna be attached to the types of amenities that you have. So the more things you have in the community that make the community nice…
Patrick: The more you’re going to pay.
Keisha: You got it. So the pools, the tennis courts, the guard at the gate-
Patrick: The workout center.
Keisha: All of that. Covered parking.
Patrick: Guests. You know how you get all your guest cards, you got the big splash pad.
Keisha: Oh yeah, I love those.
Patrick: Oh, do you? The walking bike trails. The lakes when we go, you know, fellas and the like to go, oh, all that. You’re paying for it.
Keisha: Absolutely. Absolutely. In single family communities it’s gonna be structured much the same way. So similarly, the amenities equal dollars. That’s the best way to think about it. But some things that could also happen with the HOA, especially if you’re living in communities that are structured like condos and town homes that there are needs that derive from the buildings. Say, a new roof, say they need to repave the sidewalk in front, things like that. Then that can lead to some additional-
Patrick: There’s special assessments and things.
Patrick: You’re gonna pay extra for that as Keisha said and I mean it can vary. We’ve seen it get up, again, into the thousands of dollars and you need to be prepared for that. You have to have that budgeted so it’s always a good idea to verify up front if you’re thinking about purchasing in like say a condo association or whatnot. Find out what type of reserves do they have. Are there any pending lawsuits and things like that. I mean, there’s all kind of things that you need to check on.
Keisha: Absolutely. And going back to the root of the question, are HOA fees optional, if you choose to live in a neighborhood that has a mandatory HOA, then you are committing to pay those fees and not paying those fees could lead to very serious consequences.
Patrick: Serious consequences and when I say serious consequences, guys, let me give you an example.
Patrick: You hear all the time he says hey, this is my house, right? I pay the note. I pay the mortgage. No one’s gonna tell me what to do. And you know what? If I get a note saying hey, I can’t cut my grass, I have to cut my grass, I can’t paint my door this color and all, and you get a notice with a fine on it, understand you can be fined-
Patrick: And if you don’t pay that fine-
Patrick: There can be a lien placed against your property-
Patrick: And, you ready?
Keisha: I’m ready.
Patrick: They can foreclose on your property.
Keisha: What? The F word?
Patrick: I did.
Patrick: Foreclose on your property. So guys, let me say this. That’s why it’s so important to have an awareness of your rules, your regulations, your bylaws, et cetera because on some HOAs and actually quite a few have quite a bit of power.
Keisha: And also, think about your temperament. Who you are as an individual. Am I the type of person who could live in a community where I have a body, another body of people, that are giving feedback on what I should and shouldn’t be doing with my home? So that’s something to think about. Is that in sync with your personality?
Patrick: Well, and Keisha I’m gonna say this, a lot of times I’ll have individuals come to me and say you know, Patrick, like I said earlier, no one’s gonna tell me what to do. You know what? I want the freedom to be able to do as I please and I say okay-
Keisha: Do what I want.
Patrick: Sounds great.
Keisha: I pay the mortgage.
Patrick: But understand this. If you have the freedom to do as you please, to paint your door red, to paint your door blue, to put out certain accessories or whatnot out in the front yard, whatever. Understand, guess who else has that freedom?
Patrick: The neighbor might wake up one day and say you know what? I think I want to get in the car sales business. Next thing you know there’s a big dump truck coming in…
Keisha: Uh oh.
Patrick: Gravel being poured in the front yard.
Keisha: Oh no.
Patrick: Plywood that spray paint says for sale and what can you say about it?
Keisha: Uh oh. Nothing.
Patrick: I think you get the picture.
Keisha: So as you’re considering whether or not an HOA community is for you, just keep those things in mind. Is it something that you’re comfortable with in terms of your temperament and also what goes along with that in terms of the types of rules and regulations that could be imposed upon you as a homeowner.
Patrick: We wanna thank you for tuning in and it’s very important, guys, if you like this video, you like what Keisha and I had to share with you, make sure that you subscribe.
Patrick: Make sure that you-
Keisha: Like it.
Patrick: Make sure that you comment.
Keisha: Absolutely. And we always respond to the comments of our viewers so please, please, please take a minute and just drop us a line and we will get back to you.
Patrick: And if you wanna know, guys, I’m teasing.., you may wanna know, all these questions where they come from? Well, listen, you can send questions.
Keisha: You can send questions to email@example.com and your question may be featured in our beautiful silver pot. So we look forward to hearing from you guys. Thanks again for tuning in. You guys have a great day.
Patrick: See you next time, guys. Bye.