10th Street Condo Association, Tucson AZ

How an HOA Can Increase Property Values

Your home is likely the biggest and most important purchase you will ever make. Not only are you choosing the place you will live in for many years, but you are also making an investment that will affect your future as well as the future of your family. To ensure that your home is a smart investment, consider buying a home within an HOA. But how exactly does an HOA increase property value?

Can an HOA Increase Property Values?

Buying a house is no small decision. It is a large investment that should be considered at great length. Because you want your investment to increase over time, you shouldn't jump at the first home you look at. But how exactly do you do that with a house?  

Buying a home in a homeowner’s association HOA can be an excellent use of your hard-earned money. But can an HOA increase property values? They absolutely can! Being part of an HOA is a huge asset when thinking about the future.

How Can an HOA Affect Property Values?

HOAs increase property values. Before we go further, you may wonder what an HOA's purpose is. Why do homeowner’s associations exist in the first place? And what do HOAs do exactly? To put it simply, an HOA exists to maintain the community to increase property values.

An HOA takes care of all common areas, using dues collected from residents to repair, maintain, or replace community amenities. Other than that, an HOA governs and runs the community itself.

With so many jobs to do, the HOA's effect on property values is undeniable. Here are several reasons why HOAs can increase the property value of your home:

Creating a Desirable Community

One of the best features of a homeowner’s association is that the presence of an HOA creates a community that can be the envy of other neighborhoods. In this type of community, everyone pitches in so you can enjoy amenities you would otherwise not have access to, such as a community pool or tennis court.

Furthermore, within an HOA community, strangers turn into neighbors, who then become like family. The presence of a safe, fun, and tight-knit community can be a huge draw for potential buyers and can help improve the property value of your home.

Formulating a Beautiful Neighborhood

Even if a home is beautiful, property values can decrease if the neighborhood around it is unkempt. Homeowner’s associations exist in part to beautify the entire neighborhood.

Although too many rules can sometimes be annoying, the bylaws and governing documents of an HOA exist to improve the quality of living for everyone in the community. These rules result in cleaner yards, freshly painted buildings, and a reasonable (but not excessive) amount of uniformity leading to a pleasing environment and higher property values.

Maintaining Homes Inside and Out

With the bulk of outside maintenance taken care of by the HOA, homeowners have more time and money to focus on updating and beautifying the inside of their properties. You do not have to worry about pressure washing the pavement because the association (usually) does that for you.

An HOA also handles landscaping and even shoulders the burden of trash removal, usually contracting vendors to do these jobs. Each completed improvement, whether on the outside or inside of the property, increases property values, and HOAs take care of many of those tedious tasks for you.

Offering Emergency Services

It is hard to deal with emergencies on your own. Something like flooding or fire can cause damage to your property, especially when not addressed immediately. An HOA can help with something like this by providing emergency services. This kind of quick assistance can limit the damage and prevent them from worsening, thus, keeping the value of your home from plummeting in a single swipe.

Enforcing Rules and Regulations

While it may not seem like it to some, an HOA’s rules and regulations are there to keep property values up.

Everything from what color you can paint your home to where you can park your vehicles, these rules and restrictions exist to maintain a certain image for the community.

It is even part of an HOA’s job to resolve disputes between neighbors so that everyone can live in perfect harmony.

Even Science Says So

If you are still deciding to buy a home within an HOA, let science make your decision. According to a study conducted at George Mason University, an HOA can increase property values. The study found that, on average, a house within an HOA community sells for about 5% to 6% higher than a house that does not belong to one.

By going with a home in an HOA neighborhood, you can enjoy better profits by selling your house for a higher price. Make sure you pay your dues on time to avoid having a lien filed against you.

Make a Smart Decision Today

Can an HOA increase property values? The short answer is yes. One of the biggest reasons that an HOA exists is to protect the property value of your home by ensuring that your home and the homes around your property remain beautiful and desirable all year round.

By purchasing a home that is part of a homeowner’s association, you guarantee the continuing beauty of your home and neighborhood. When prospective buyers see the charm of your neighborhood, more and more people will live there, driving your property value higher.