Ask a random person off the street if they are an HOA member, and there's a good chance they'll say yes. Across the nation, there are almost 400,000 HOAs, compromising 40 million American households.
Many people view the HOA as a pestilence of bored Karens who nag you about the height of your grass. However, it's important to recognize the good the HOA can do beyond keeping the streets clean. Specifically, how monthly fees affect your HOA home value.
Today, we discuss how HOA fees impact your property values over time in Morristown, NJ.
Local Maintenance Reduces Home Maintenance Expenses
HOA fees are meant to pull together to contribute to the overall community. Most of this money goes towards running local programs such as garbage collection, gates, and so on. But another thing it goes towards is maintenance.
Someone has to cut the grass, fix cracked curbs, and patch the asphalt. These planning maintenance costs could fall on you in certain situations, impacting your property value. The fact that they are taken care of keeps that value from slipping and prevents you from shouldering a burden that's too much for a single homeowner.
HOA Home Value Is Higher Than Non-HOA Homes
HOAs are very common, to the point that 84% of new homes have one. Some data suggests that HOA homes have a higher value than non-HOA homes. This is good news for homeowners who are tired of high costs that don't seem to carry a worthwhile benefit in return.
It makes sense when you think about it. Those HOA fees cover maintenance costs and communal areas. Better-looking neighborhoods increase property values, which is especially comforting if you're an accidental landlord who needs to sell a property.
Benefit of Shared Amenities
Another great thing the HOA community can sometimes do is provide shared amenities. This comes in the form of parks, clubhouses, swimming pools, walking trails, and even fitness centers. These are nice little bonuses to have, but they do result in an impact on your home's value.
The most obvious impact is that it adds a lot to your rental valuation. People buy and rent based on what's available in the local area. Being able to go to a gym close to home, for free - or for a reduced cost - saves money and time.
However, it just generally adds value to your home, especially for selling. Amenities like these require a lot of upkeep and a neighborhood that is relatively safe. Their existence naturally adds value to your home.
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The effect of HOA fees has a generally positive impact on HOA home value. It reduces the burden of maintenance and shared amenities, both of which keep property values higher. As a general rule, evidence suggests that HOA properties have higher values than those that do not.
PMI Prime Property in Morristown, NJ, brings 20 years of industry experience through a homegrown, independently operated management company. We provide state-of-the-art services to increase the value of your properties over time. Find out how much you can earn with a free rental analysis.
