Are you planning to purchase a property in an HOA community and wondering how values hold up?
Living in a planned association community comes with several benefits. Security is great, and you have quick access to communal amenities like fitness centers and swimming pools.
However, all these benefits might amount to little or nothing if your property isn't gaining any value. With the median price of a home hovering closer to $450,000, you don't want to see your investment go down the drain.
There are a few factors that affect HOA home value. Come with us as we unpack what you need to need to know.
1. Location, Location, Location
Whether your home is in an association community or not; whether it's an apartment or a single-family home, location will always have a major impact on its value.
When purchasing an HOA property, it's essential to evaluate the local real estate market. Look at past trends and future forecasts before making a decision. If property values in the area have been growing slowly over the last decade, it's unlikely that that trend is going to change any time soon, no matter what your community might do to prop up values.
Generally, you want to buy a property in an HOA community that's located in an area where prices are on a steady uptrend.
2. HOA Leadership
An HOA community is led by a board that is responsible for the overall management of the community.
It enforces the community's bylaws and covenants, collects and manages HOA fees, and oversees the maintenance of communal areas. In other words, an HOA board can make or break an HOA community.
A great board can transform an ordinary community into a desirable community where everyone dreams of living. Inevitably, this will have a positive impact on the values of the properties in the community.
3. Property Maintenance and Upgrades
As an HOA property owner, most of the factors that will influence the value of your home are beyond your control. For instance, there isn't much you can do if a great location for investing in residential real estate suddenly becomes crime-infested, driving property values down as a consequence.
However, there are a few factors that are firmly in your control. One of those is property maintenance.
It's a no-brainer that you have to do routine maintenance for a property to at least retain its value. Making HOA-approved upgrades, such as repainting the exterior or remodeling the kitchen, can add some value to the home, especially if you want to put it on the market soon after.
Protect Your HOA Home Value
HOA home value, like other real estate property values, can move in any direction. The good news is an HOA can make positive contributions to property values, meaning buying an HOA home can give you an advantage over non-HOA homes.
Do you know what else an HOA can do to help increase property value? Outsourcing its management to a property management company.
PMI Cross Timbers offers top-notch association management services, targeting HOAs in Coppell and Forth Worth, Texas. Whether you need strategic planning and execution, membership engagement, or financial management and reporting for your community, you can count on us to deliver.
Contact our team to learn more!
