What is an HOA? HOA stands for Home Owners Association. It is a group of local homeowners who form an association to set rules in their local neighborhood. While most of these are often a good thing, before you buy a home in an HOA, be sure to find some things out first.
First of all, make sure to get a copy of the HOA agreement. This agreement will set the standard for what you can and cannot do. For instance, some HOA’s don’t allow you to back into your driveway. Or some require the exact opposite and don’t allow you to back out of your driveway.
While that is not as common of an example, other restrictions usually apply. For instance, you may not be able to change the color of your home, or keep your garbage cans outside of your garage.
HOA’s make sure that you don’t have to worry about your neighbor doing something unappealing with their home and devaluing your home or making it less appealing. But at the same time, it also restricts you in certain ways as well.
So know what you are getting into before you buy a home with an HOA. Ask questions, read the rules thoroughly, and be informed.