If it significantly limits your buying options, then yes include HOA'd neighbors in your search.

Typically, HOA fees do increase annually a small amount. And you really need to consider what your HOA fee "buys" you...parks, trails, pools, tennis, golf, common area/entryway maintenance, lighting, snow removal? How much does this stuff matter to you and your future family?

Also, speaking from experience I LIKE the idea of an HOA limiting what people can and cannot do in their yards/exteriors.

People have a variety of intrepretations of the words, "clean, uncluttered, grass mowed, taking Christmas decor down in a timely fashion," etc. and you'd be surprised what some unfettered homeowners will do on their properties...

MommyLiberty5013:

If it significantly limits your buying options, then yes include HOA'd neighbors in your search.

Typically, HOA fees do increase annually a small amount. And you really need to consider what your HOA fee "buys" you...parks, trails, pools, tennis, golf, common area/entryway maintenance, lighting, snow removal? How much does this stuff matter to you and your future family?

Also, speaking from experience I LIKE the idea of an HOA limiting what people can and cannot do in their yards/exteriors.

People have a variety of intrepretations of the words, "clean, uncluttered, grass mowed, taking Christmas decor down in a timely fashion," etc. and you'd be surprised what some unfettered homeowners will do on their properties...

I agree with all this. 

Each HOA is different.  I'm president of ours.  Our covenants don't give the HOA much authority, so really, the most I can do is write you a letter.  (See: undergrads renting the house around the corner who had garbage stacked at the curb for 3 weeks and no trash service.  See also: unleashed pit bull roaming the neighborhood repeatedly (no leash laws in this county).)  Our dues only go up when our services go up (insurance, electric, lawn care).  Not all HOAs are bad and many are invaluable for protecting the biggest investment you'll ever make.  Look at all houses, then look at the HOA that goes with it.

Thanks for your responses! Around here, HOAs can fine you a lot of money for changing your home without approval. In our town, a homeowner is currently being fined $100/day for building a staircase on the back side of her house even though she had a permit. We don't need to worry about snow removal here, and our town already has incredibly strict leash laws as well as dozens of parks and recreational centers. I have never lived in a neighborhood with an HOA, but I think I'm scared off by all the horror stories I have heard from homeowners in our town. I'm surprised to hear how different they are in other parts of the country, but I still don't see much of a purpose for one.

I HATE hoas!!!!  You can't even sneeze without their permission.  They take our money monthly and do nothing for us.  It's the worse!

MmmPopcorn:

Thanks for your responses! Around here, HOAs can fine you a lot of money for changing your home without approval. In our town, a homeowner is currently being fined $100/day for building a staircase on the back side of her house even though she had a permit. We don't need to worry about snow removal here, and our town already has incredibly strict leash laws as well as dozens of parks and recreational centers. I have never lived in a neighborhood with an HOA, but I think I'm scared off by all the horror stories I have heard from homeowners in our town. I'm surprised to hear how different they are in other parts of the country, but I still don't see much of a purpose for one.

If you really do live in an area so highly regulated, I don't imagine you have much of a choice in the matter (meaning you will have one) if that's where you intend to stay.  The best thing for you to do is take my advice to research each individual HOA and avoid the overly militant ones.

Look at houses with and without HOA.  If you find a house that you truly love, make sure you read, understand and 100% agree with the HOA. 

Personally I would avoid buying a house with HOA.  If it is my house and property I don't want anyone telling me that I cannot air dry my laundry.  To me it would feel like I was renting the property, but paying the mortgage and taxes on it.

Here's the other thing to remember.....just because the HOA board isn't militant today, all it takes is one HOA board election to change that.

jtmh2012:

Here's the other thing to remember.....just because the HOA board isn't militant today, all it takes is one HOA board election to change that.

That might not be exactly true.  She needs to read the covenants. If it's not militant today, it may be because the covenants don't allow for it. While there are plenty of crazy HOAs in the world, I've only ever experienced rational, appropriate ones. Buy where you agree with the covenants, OP.  A crazy board has no power if the covenants don't give it to them.  

There are pros and cons to HOA's, and power varies between neighborhoods. If you're strongly against them then start looking at homes outside of HOA's. If you find the inventory limited then expand your search. Before you buy in an HOA make sure you have requested and read a copy of the covenants. Make sure you understand what they can and cannot do, what the fees are (and remember these can change and you can be charged special assessments), what you get for your money, how changes to the covenants are enacted, and what the consequences are if you violate the HOA.

I would also want to know if the HOA has been given to the homeowners yet and whether there is a management company involved. If the homeowners do not yet have control, when will that happen (usually once a certain percentage of lots sell). Secondary to that, is there still building taking place? Who makes up the board? Are those members active in continued development? It surprises people to find that their developer can bankrupt and be no longer involved in the community years later, but still retain control of the HOA. 

TarHeels&Rebels:

jtmh2012:

Here's the other thing to remember.....just because the HOA board isn't militant today, all it takes is one HOA board election to change that.

That might not be exactly true.  She needs to read the covenants. If it's not militant today, it may be because the covenants don't allow for it. While there are plenty of crazy HOAs in the world, I've only ever experienced rational, appropriate ones. Buy where you agree with the covenants, OP.  A crazy board has no power if the covenants don't give it to them.  

In my friend's case is was a matter of they were on the board and were generally a younger group and a lot of the covenants weren't being strictly enforced.  The board got voted out and a new board voted in that went through and started strictly enforcing everything on the book.

We have an HOA and we love it. Yes we have to have approval for changes, but as long as they are not something totally off the wall they will be approved.

Our HOA is managed by the homeowners, and is incredibly well run.  People want to move into our neighborhood because of it.  For us it is very much worth it.  We have beautiful common areas, a pool, tennis courts and a gorgeous club house for very reasonable fees.  As pp said you just need to decide if those are the types of things you want.

atlcatlover:

We have an HOA and we love it. Yes we have to have approval for changes, but as long as they are not something totally off the wall they will be approved.

Our HOA is managed by the homeowners, and is incredibly well run.  People want to move into our neighborhood because of it.  For us it is very much worth it.  We have beautiful common areas, a pool, tennis courts and a gorgeous club house for very reasonable fees.  As pp said you just need to decide if those are the types of things you want.

We also bought a house subject to an HOA. When DH and I were first house hunting, I didn't like the idea of an HOA because I didn't want my property rights restricted. However, that feeling quickly changed once I realized how much a neighbors property condition can impact the value of your own property. My next door neighbors can't let their house go to crap without at least getting chewed out by the HOA. For that, I'm happy we live in a subdivision with an HOA.

Dh and I are in a HOA apartment building and I like it and hate it at the same time. Our HOAs are 740 a month, on top of monthly bills, we paid for our unit in cash but still. I feel like we are in a Resident Assistant building with all of the you can not do this and you can do that e mails. Our door men do not do ANYTHING and I was pretty resentful when they ask for 200 dollars tip per staff member during the holidays... For what  they earn a salary and I am not going to tip someone for saying hi to me.  I have to say during Hurricane Sandy, they were amazing with the communication. but I am over it. We are in a 3 Bedroom, and I am pregnant with twins I can not wait to move to the Suburbs.

Honestly, my neighborhood is not an HOA, and our neighbors make DH and I regret byeing in our neighborhood. We have people with fences that have fallen down 6 years ago, and never removed. We have people with knee high weeds in their yards, We have bright yellow houses, We have eroding sidewalks, etc. A lot of people in our neighborhood don't care about the condition of their property. Because of all of this, the next house we buy will be a part of an HOA, or a covenant.

Consider each individually as they are all different.  Ours is very lax and functions mainly to ensure that no one lets their house go to pit. Our fees are also very low.  You won't get a notice unless you park a utility vehicle or a car on blocks.  Some can be nutty but for the most part they are to make sure the neighborhood maintains real estate value by forcing people to maintain property.