SHOULD I SHOP FOR HOMES WITH NO HOA FEES?

We at Team1 have been advising Naples real estate buyers and investors to shop for property with no HOA fees.  With rates this low a simple $1000 per quarter HOA fee is huge if you do the math. In other words, you can get a lot more house without HOA fees. Any thoughts?
  • November 13 2010 - Naples
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (16)

Best Answer

I sold my home before last that was in an unrestricted county area specifically because I was sick and tired of the neighbors violating deed restrictions, which I felt would eventually negatively impact the value of my home. My only recourse would have been to personally sue other owners, which would have been financially impractical and socially draining.

I intentionally built my next home in an HOA controlled neighborhood. 3 years later we've moved again and live in a non-HOA neighborhood, but this time within city limits where there is code enforcement if neighbors get out of hand. 

I think either scenario is risky though. A poorly run HOA can hurt property values as much or worse as bad neighbors. I think the best option is to evaluate each individual property on its own merits. In other words, as an investor, would you pass up a 30% below market deal in an HOA in favor of a 20% below market deal in a non-HOA? Probably not, so it's not the HOA that matters, it's the deal.

Here is an article about a nightmare situation regarding no HOA enforcement.

[deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]

Steve
  • December 13 2010
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Takis
HOAs are undemocratic organizations and a small minority rules them. Cities and towns instead of enforcing their codes and laws, delegate this authority to the HOAs. I was for most of my life a homeowner in NY and Westchester county, there are no HOAs there and the houses and streets are clean and beautiful. No one can have garbage in his property or in the street in front, he can get tickets from the town sanitation and code enforcers. About the parking there are signs in the streets regulating it. Many here claim that HOAs keep the values up, but my experience here in Tucson is otherwise, comparable houses without HOA are quite a lot more expensive, and the other thing is that no mater how good the outside of the house and the yard looks, the house has NO value when you go inside and find there everything in bad condition and destroyed.
  • April 24
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

There is no end to the horror stories that originate from the actions of the HOA ENFORCERS.
-
One wife was fined for the 'Welcome home Soldier' sign in the yard for her returning husband.
-
Another fined because she was on a rotation of mothers who shared babysitting chores while the others had a mother afternoon out.
-
And let's not leave Dad out. Fined for tossing a frisbee to the son on those beautiful green spaces. Apparently they were only to be looked at not walked upon.
-
The stories are fun to share and helps those who are so inclined to vent.

What is NEVER shared is that each of these home owners sat with a HOA representative, and personally reviewed the rules. Then the buyer SIGNED the form indicating they read and understood those rules. And they purchased the property.

If you prefer anarchy, stay away from HOA governed communities. Some HOA only collect funds adequate to publish the community directory, keep the lights on the sign on and fund the Christmas and summer community party. No funds exist to enforce the HOA rules.

I have found the best community to live is the one where my neighbors is as good a neighbor as I am. Too often the cause of a bad community can be found using only a mirror. We all have choices. Don't expect me to change what I have chosen for myself because you refuse to keep your commitments.

Whether you don't like rules or willing to conform for the benefit of all, choose the right place. There one out there waiting for you.
 
  • March 27 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

[spam deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • March 13 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for AngelinaOrtiz
I paid $700.00 a year just for them to tell me I can't park on the street, never use the pool gate is always broken rip off, looking to move soon.
  • January 13 2014
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user4045882
Surprise, Surprise, you also get charged by the HOA when you try to sell your home.  They request any amount of money they feel like to tell the title company that you do not owe them anything.  It only cost me an additional $500.  I grew up with no HOA's and do not see the necessity.  Unfortunately, there are very few mid priced homes that are not under the totalitarian rule of these money grubbing organizations.  I really don't care what color my neighbor paints his house.  He bought it, pays taxes on it and deserves the right to paint it bright pink with purple polka dots if he wants.  I don't need octagenarians scouring the neighborhood out of boredom telling me what to do with my landscaping, when to clean my roof and where to place my garbage cans unless they wish to pay my mortgage. 
  • October 22 2013
  • 3Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Mark LeMenager
An HOA has only one purpose -- to protect the property values of it's members.  Although, of course, some of them do seem to forget that.

I tell my investors that an HOA is preferable.  Do you want to buy an investment property in a place where someone thinks it's all right to paint their home bright pink or purple?  Will be fun trying to sell it.
  • August 04 2011
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Yes!  Absolutely! In this economy its a safe investment and truly a great way to watch your bottom line and skip the HOA. While property values are going down, one doesn't need HOA's that go up.

  If you do buy a new home with HOA's its still okay, just make sure you can find value in them. Ask yourself?

1. Do I appreciate and use the communities services; such as:

    The Pool, tennis courts, clubhouse, basketball courts, etc?

2. Do I find value in the landscaping care?

3. Do I find value in the insurance, street care and lights as well as the garbage service and cable TV, etc?

  Also, make sure the finances and reserves are in good standing.

If can find value versus cost then HOA cost can be justified.



I have one such listing with no HOA, this home is perfect for a family or couple that wants to be frugal and control the bottom lone. 







  
  • December 11 2010
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

There is no black or white answer.

It depends upon the needs of the homebuyers.  If they want to park a boat or trailer, then look for no HOA. 

If you want the neighborhood to look the best with no eye sores, than choose one with an HOA.

Eve in Orlando

  • November 14 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Ofe Polack

I would not discourage any buyer from purchasing a home that has HOA, I would simply explain the advantages and disadvantages of properties with and without HOA fees and let the buyer decide for him/herself.

  • November 13 2010
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Mills Realty
Immediately discounting properties with HOA fees doesn't make sense.  As with any financial decision all aspects need to be looked at.  Besides the mostly common sense rules that help keep your neighbors from painting their home pink with purple trim you are not responsible (in most cases) for exterior maintenance items.  Be sure to figure in all costs of homeownership before discounting properties simply because they have an HOA fee.
  • November 13 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for SoCal Engr
@ Dan...

You don't like the idea of an HOA, so it's not likely you'll see any positive in HOA CC&Rs.

An HOA, with respect to CC&Rs, is a "mini-society". People who buy into it agree that certain activities negatively impact the overall neighborhood, including housing values, and the CC&Rs codify a ban on these activities.

I've seen (and lived in) the neighborhoods where everything is left to the discretion of the individual homeowner. In many cases, it works okay. However, there are too many circumstances where it doesn't - and there is no recourse for the neighbors, they just have to suck it up and put up with it.

Freedom to do whatever I want is a two-way street, it means my neighbor can do the same. Most everything in my HOA's CC&Rs are common sense things that I agree with, and so I chose to move into the HOA. If I didn't agree with the CC&Rs, I would not have bought. As for "not being able to do as I want", I never really wanted to do those things anyway...so no big deal.
  • November 13 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for the_country_hick
SoCal, how can not being allowed to hang a plant off your front door, or park your trailer in your back yard be good things? How can being told you can not do a car repair yourself in your own yard be reasonable? How can a HOA tell me what paint colors I can paint my house? What sense does that make?

A planning board can be tough enough. A HOA can make them look very reasonable and friendly although this can vary by HOA and restrictions placed by them.

I do not see positives to this. I do not need or desire a pool, spa, or those other expensive amenities. If I did I would join a club or business that offered them. I do not want to be forced to do (or not do) something against my will and that includes paying for things I would never use or enjoy.

When a HOA can tell me just exactly what I can do with my own property where is the advantage over renting? Either way you have a landlord saying no and pay me some money.
  • November 13 2010
  • 4Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for SoCal Engr
As with almost any "absolute" type of advice, it falls apart at a certain point-in-time or under specific circumstances.

First, HOA fees vary greatly. Wetdawgs is at $75/yr. You're talking about $4K/yr. I've personally paid $1K/yr and $3.6K/yr. Obviously, this money could be applied towards a house payment with varying impact.

The other question is "what do you get for your HOA fee?", especially in a community of SFRs. Our last HOA was huge, and the fees paid for the common areas - as well as several "community pools" that were spread throughout the development. Our current HOA is fairly small, and we have the standard common spaces and rec facilities (i.e., pool, jacuzzi, workout room, tennis courts, etc.). Also, because we are gated, the HOA fees have to pay for the maintenace of the streets, lightpoles, common area landscaping etc.

As for restrictions, you need to look at the CC&Rs before buying. Most of the restrictions are what I'd call "common sense", and they protect the overall "feel and integrity" of the neighborhood.

If all this has value to you, then look at an HOA. If, like Dan, the thought of restrictions makes you feel caged, look elsewhere.
  • November 13 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for the_country_hick
Allowing a HOA to tell you what you can do with your own property you p[aid for AND to give them money for that purpose only frustrates me. I refuse to buy anything with a HOA that tries to empty my pocket be it $1 a year or $100,000 a year. A HOA is a Homeowners Opposition Actually. They are anti-freedom and that is not for me.
  • November 13 2010
  • 6Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
$1000/quarter?  Yikes!   Our HOA fees are $75/year.   

I would recommend that clients look at the entire financial picture of the properties of interest, rather than automatically reject HOA areas.
  • November 13 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.