What is an HOA and why are they
important? Hey everyone! Welcome back to my channel, I’m Lindsay with the Wise
Move AZ Team at Realty ONE Group. If you want to stay up to date on all things
Anthem and Real Estate then you need to hit that subscribe button!
Pro Tip: You’re also going to want to hit the little bell icon so that you’re the
first to know when our new videos are posted every single Thursday! As your
Anthem, Arizona REALTOR® I can’t tell you how many questions I get about HOAs… SOOO many! HOAs are extremely common here in Arizona and it’s important that you
understand what they do, why they do it, and how it impacts YOU! If you have specific
questions about HOAs that I don’t cover in this video, feel free to drop me a
comment below or shoot me an email and I’ll get back to you. At the end of this
video, I’ll also give you exclusive access to our guide: Making a Change to
your Home or Yard? Five Must Know Tips for Working with your HOA to win their
Approval and their Trust! So, make sure you stick around until the end of this
video! First things first, what is an HOA? HOA is short for homeowners association.
HOAs are typically incorporated, nonprofit associations of homeowners,
that create and enforce bylaws and what are often referred to as CC&Rs. CC&R
stands for Covenants, Conditions, and Restrictions, and all of these are put
together into one big long document that basically acts as the HOA’s bible. It
dictates what the homeowners can and can’t do, what the HOA is responsible for,
and a ton of other really important information that impacts the homeowners.
I won’t go into too much detail on this because the CC&RS are different for every
community. If you’re ever having trouble sleeping at night, crack open your CC&Rs.
Just kidding! They actually contain really important information that we
encourage all homeowners to read before buying into a community. Because an HOA
is a non-profit it has members rather than shareholders. The members of the HOA
are the homeowners within the area that’s governed by the HOA. This means
that if you live in an HOA governed community you are a member of the HOA.
The members of the HOA typically elect a Board of Directors. The Board is made up
of members of the HOA who volunteer their
time to assisting with enforcing the CC&Rs, and any other issues that may arise.
For example, the Anthem Country Club Community Association oversees over 2,800 homes and has a volunteer Board of Directors, made up of five volunteers.
Notice that I said volunteers, that means that these people have the thankless job
of dealing with member complaints. So, keep that in mind if you ever have to
deal with your HOA Board. What’s that saying?…..
You catch more flies with honey, than with vinegar…yeah! Keep that in mind when dealing with your HOA Board. So, why do we have HOAs?
So, now that you know that the CC&Rs aren’t exactly going to make Oprah’s Book Club you might be wondering why do we even have all these covenants,,
conditions, and restrictions? Why don’t we just live and let live? If you don’t like
the idea of having an HOA there are definitely still options for you in
Arizona! But, if you’re like me and a lot of other people you really like the idea
of having an HOA. The HOA helps to ensure orderly and harmonious enjoyment of the
community. It also helps to protect against depreciation of homes values
resulting from the deterioration of the community. For example, our HOAs here in Anthem enforce exterior painting.
They’ll send you a notice when it’s time to
repaint and they’ll also dictate the colors you can use. In Anthem, we have
lots of color options, so this is no big restriction, but it’s a huge benefit
because you don’t have to worry that the neighbor is going to paint their house
lime green or that everyone lets their home’s appearance deteriorate to the
point of hurting property values in the neighborhood. That’s just one example.
The HOA may also govern the types of plants people can have in their yard,
maintenance of the common areas, and so much more! All of these things help to
ensure that the community maintains a uniform appearance and helps to protect
property values. If given the choice, I think we’d all choose to live in a place
where it looks like everyone cares about the appearance of the community and HOAs
help us do just that! How do HOAs impact you? Well, it’s easy! If you buy
into a community that’s governed by an HOA you become a member
of that HOA, and it’s your responsibility to understand and abide by the CC&Rs. For
example, if the CC&Rs specify that you can only have one pet, but you have three
cats, four dogs, and six hamsters, it might not be the perfect community for you, or
if you absolutely have to have a palm tree in your yard but the CC&Rs dictate that only indigenous plants are permitted you might need to keep looking!
It’s always a good idea to read the CC&Rs before buying into a community or at
least during your due diligence period once you put in an offer on a property. I
get that it’s not fun reading but I promise, it’s totally worth it so that
you don’t have problems down the road!
So, there you have it! I hope that this video
about HOAs was helpful, and that you can go and look at neighborhoods and
communities with confidence! Also, if you haven’t got your fill on HOA
information just yet, click the link in the description box below to download
our guide: Making a Change to your Home or Yard? Five Must Know Tips for Working
with your HOA to Win their Approval and their Trust! If you enjoyed this video,
let me know by hitting that like button, subscribing to our Channel, and sharing
this video with your friends! See YOU next Thursday!