What Buyers Need To Know About Homeowners Association Fees

What Buyers Need To Know About Homeowners Association Fees

When you’re in the market to buy a home, you likely focus on things like mortgage rates, home prices, your down payment, and closing costs. But one thing that might not be on your radar is homeowners association (HOA) fees. These fees aren’t guaranteed, but they’re worth knowing about—they depend on the type of community you choose.

An HOA is an organization that manages a neighborhood’s shared spaces and enforces certain standards for upkeep. Some buyers enjoy the added amenities and structure, while others view the fees as an added cost. It’s important to understand what’s included and whether the benefits are worth it for you.

Why Some Buyers Appreciate an HOA

If you’ve ever admired a neighborhood for its clean streets, manicured landscaping, or overall appearance, there’s a good chance an HOA is behind that. Here are a few advantages:

• Community Maintenance: HOAs often handle lawn care, snow removal, and upkeep of shared areas, which keeps the neighborhood looking its best.

• Amenities: Some HOAs provide access to extras like a clubhouse, gym, pool, or security—services that could replace separate memberships or added costs.

• Property Value Support: By enforcing community rules, HOAs help prevent homes from becoming rundown, which protects your property’s value.

• Reduced Maintenance Duties: In certain communities, HOAs may manage exterior upkeep or repairs, giving homeowners fewer responsibilities.

HOA Fees Are Especially Common in New Homes

While not every home has an HOA, they’re becoming more typical—especially in newer developments. In fact, over 80% of newly constructed single-family homes are now in HOA communities, according to the Wall Street Journal.

It’s not just newly built homes that come with HOA fees—many previously owned homes do too. According to Axios, around 4 in 10 homes in 2024 had a homeowners association.

HOA Fees and Your Home Search

As you explore your options, ask your agent which homes include HOA fees and how much those fees are. They can vary—some are monthly, others quarterly, and some homes don’t have any at all. Realtor.com reports the median HOA fee rose to $125 per month last year.

Still, those fees often provide valuable benefits. Danielle Hale, Chief Economist at Realtor.com, advises buyers to consider what those fees cover—like maintenance or amenities—and how they fit into your overall budget.

Bottom Line

Before purchasing in an HOA community, take time to understand the rules and fees involved. That way, you’ll know what’s included, how it impacts your finances, and whether the restrictions align with your lifestyle.

Would you rather pay for extra amenities or avoid the added fee for more freedom? Let’s talk about what works best for you.