What you need to know before buying a house with a garage
Here are some options and things to consider when deciding whether to buy a home with a garage.
When you’re looking for a home, you’ve probably seen properties that mention an “HOA” (Home Owners Association). But other than the fact that there are mandatory fees, most people don’t know what it means to live in a place where a subscription is required. This includes planned communities, condominiums, and cooperatives.
Homeowners in these cooperative developments share ownership and maintenance responsibilities for common areas such as roads, recreational facilities, and structural elements.
“It really creates an opportunity to access a higher level of living at a more affordable price because we share everything that’s associated with it,” said Dawn Bauman, chief strategy officer for the Association of Community Associations. “It’s about shared ownership and sharing amenities.”
Rather than being maintained by municipalities, these developments are managed by elected volunteer residents’ governing bodies known as homeowners associations (HOAs). Homeowners are also required to pay monthly dues to the HOA to cover maintenance costs, operating costs, and reserves.
But what does owning a home in an HOA actually mean for residents, and is it worth joining? Here’s what you need to know about this type of community, including the pros and cons and what to consider before joining.
How does an HOA work?
A homeowners association is made up of an elected board of volunteer homeowners who oversee the community’s finances and organize the maintenance of common spaces.
The board also establishes and enforces a set of community rules, which are outlined in a document known as the Terms, Conditions, and Restrictions. These rules can focus on things like your home’s appearance, quiet hours, pet policies, parking regulations, and more.
Bauman said that while there is a core framework of rules common to most HOAs, each HOA can create its own rules based on the wants and needs of the community and its members.
What are the advantages and disadvantages of joining an HOA?
Due to their set of standards, HOAs tend to be well-maintained and aesthetically pleasing environments, resulting in higher property values, Bauman said. Residents also enjoy benefits such as pools, recreational facilities, and green space without the hassle of upkeep. And you can build a sense of community with your neighbors.
On the other hand, for homeowners, having to follow a set of rules within a neighborhood can feel limiting. Additionally, the added cost of mandatory monthly HOA fees may not be ideal.
And while there are some legal guidelines that focus on homeowner rights and HOA operations, including elections, meetings, and fiduciary duties, there is typically no dedicated state agency that actively oversees the day-to-day operations of HOAs.
Ed Hannaman, president of the Common Interest Homeowners Coalition, which advocates for fair governance and protection of homeowner rights, said this leaves room for potential mismanagement, abuse of power and excessive fines within HOAs.
“You can elect a board of directors, but the board has all the power,” he said. “So it needs to be a government agency. There needs to be transparency. Homeowners need to have full access to all business records. They need to see maintenance and repair contracts, and they need to see who’s doing the contracting.”
Things to consider before purchasing an HOA
Before buying a home with an HOA, do your due diligence to make sure it’s the right decision.
Bauman said he will examine the financial model of the neighborhood association and how much homeowners are required to pay in HOA dues on a regular basis. You should also check to see if any special assessments are scheduled for major projects or repairs, or if the HOA has capital reserves to cover long-term maintenance, Bauman said.
You should also review the community’s terms, conditions, and restrictions to understand its standards and rules and determine whether it is appropriate for you. Additionally, Hannaman said he will look into the commission’s practices in terms of making financial records, meeting minutes, vendor contracts, etc. available to homeowners.
Maddie McGay is a real estate reporter for NorthJersey.com and The Record, covering everything that’s worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay or X @maddiemcgayy and sign up for the North Jersey Living newsletter. Have a tip, trend, or great home she should know about? Email MMcGay@gannett.com.
