How Do HOA’s Work?

How do HOA’s work? Do I want to buy a home in an HOA community? Would I prefer to buy a home where there is No HOA? When you purchase a home in Queen Creek or San Tan Valley, then there’s a good chance that you’ll have to pay a homeowners association fee, especially in gated communities, townhouses, condominiums, and the many master-planned neighborhoods in the Queen Creek area. The idea of an HOA is to keep common areas clean and well maintained, and there’s usually an HOA board that is responsible for setting the rules and regulations.

Not only will this information be important to home buyers, but if you are selling your home in an HOA community, then you should expect some fees associated with transferring the HOA account into the new owners name. There will often be fees such as a resale disclosure fee, transfer fee, capital improvement fees, and reserve fees. The resale disclosure fee in Arizona real estate is always a seller fee, whereas, the other fees are negotiable between buyer and seller. These fees will be negotiated according to the HOA Addendum that is provided by the seller based on the fees the HOA has disclosed to them at the time of listing their home for sale. The title company will also confirm HOA fees during the escrow process and then the fees will be charged to each party as agreed upon in the HOA Addendum that is executed at the time the purchase contract (offer) is signed by both parties.

Each HOA is different, but most have the same core elements. You’ll typically pay your HOA fees either monthly, quarterly or annually, and it’s an important factor to consider when you’re weighing your options for a new home purchase. So what is typically included in your HOA fees?

First, the fun stuff: Amenities are typically the big perk of living in a community with an HOA. While you may lose out on some of the freedom of living without an HOA, you instead get community amenities like a maintained pool, gym, clubhouse, tennis courts, and playgrounds. The HOA fees pay for cleaning and maintenance, so—in theory—you’ll always have a clean pool whenever you want to use it.

Protecting the community: HOA fees often contribute to insurance for the community amenities, as well as a fund for unexpected repairs to damaged community property—think damage from weather or accidents.

General maintenance: Your HOA fees will go toward maintaining the general safety and upkeep of the community. This means things like elevator maintenance for condominiums, regular landscaping, periodic repairs.

Be active in the HOA: There may be a board of directors, but homeowners associations exist for the betterment of the entire community, and every voice matters. HOA meetings—and the amenities they support—provide great opportunities to meet your neighbors and make your community a better place.