Can an HOA Add Value to Your Property?
According to a recent Arizona Community Management Impact Study conducted by the Arizona Association of Community Managers, more than two-thirds of homeowners feel their community association has a positive impact on property values.
Conversely, only 10% of Arizona homeowners surveyed felt their HOA had a negative effect on property values.
So what are some reasons why community associations boost value?
First, the guidelines detailed in a communityís CC&Rís help promote beautification and ensure homeowners maintain their properties.
Homeowners are held accountable for keeping the appearance of their properties at a high level, so you reduce the risk of problems such as overgrown landscaping, clunkers cluttering the street and unusual color schemes on houses.
Since the current real estate market is creating more rental homes, maintenance is an important factor because you can often spot rentals by their lack of upkeep.
Community associations also protect the resale value of properties. Frequent maintenance Ė as required by CC&Rís Ė leads to fewer repairs, especially when it comes time to sell your property. Furthermore, you donít have to worry about a potential buyer getting scared off because your neighbor doesnít maintain his property, which is more likely to happen in neighborhoods without a community management company.
And while most homeowners prefer minimal HOA payments, associations with the lowest fees arenít always the best because it could indicate an inactive board with low reserves. Plentiful reserves and budgets ensure dues are handled, repairs are made, and the community is maintained.
If repairs multiply and homeowner dues increase, a property could be a deterrent for a potential buyer.