ANSWER: Being a part of a homeowners association can impact your budget as well as your daily life, so when you're shopping for a new home, the HOA costs should be taken into consideration. But how much is too much to pay? First, you need to know what all the HOA will cover.
HOAs are legal entities that oversee a building or neighborhood intending to create a better community for the area. Its exact role varies, but it can maintain landscaping, the costs of fitness centers, and snow removal, among other tasks.
According to Investopedia, the average monthly HOA fee is $200, although that number can vary depending on your location and type of residence. For instance, people who live in larger metropolitan areas such as New York and Philadelphia will likely pay more money compared to those who live in Charlotte and Nashville.
Single-family homes often have a lower HOA, while condos have higher prices. The reason behind the increase is that condo buildings usually have additional amenities such as community activities for residents, swimming pool upkeep, and fitness centers.
Whether an HOA is worth it is ultimately up to you. While including the HOA fees in your budget probably isn't something you want to consider, understand that it's likely replacing bills you would need to pay anyway, such as landscaping, gym membership, or trash.
Determine what's important to you and how much you can afford before agreeing to a residence with an HOA. If you have other questions, need additional guidance, or are ready to find the home of your dreams, feel free to reach out to a trusted real estate professional.
Sources: Houwzer.com, Forbes.com, Investopedia.com
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