What Buyers Need To Know About Homeowners Association (HOA) Fees

When you’re buying a home, you’re probably thinking about mortgage rates, prices, and your down payment. But there’s another cost buyers sometimes overlook: homeowners association (HOA) fees.

Not every home has them, but many do, especially in newer neighborhoods. That’s why it’s important to understand how HOAs work, what they cover, and how they might impact your budget.

What Is an HOA?

A homeowners association is an organization that manages a community and shared spaces. HOAs set rules, maintain common areas, and collect fees from homeowners.

Some buyers love the perks. Others see it as an extra monthly bill. The key is deciding if the benefits outweigh the costs for you.

Benefits of an HOA

Here are a few reasons why buyers choose HOA communities:

• Neighborhood Maintenance – Landscaping, snow removal, and upkeep keep the community looking great.

• Amenities – Pools, gyms, clubhouses, or private security may be included.

• Property Value Protection – Rules help prevent nearby homes from falling into disrepair.

• Less Work for You – In some cases, HOAs even handle exterior upkeep or roof repairs.

How Common Are HOA Fees?

• 80% of new single-family homes are part of an HOA (Wall Street Journal).

• 4 in 10 homes overall have HOA fees (Axios, 2024).

• The median fee is about $125 per month, but this varies by location and amenities (Realtor.com).

Some communities bill monthly, others quarterly and a few homes don’t have HOA fees at all.

What Buyers Should Do

If you’re looking at homes, always ask your agent:

• Does this home have an HOA?

• What do the fees cover?

• Are there any rules or restrictions I should know about?

As Realtor.com’s Chief Economist Danielle Hale explains:

“When considering a home with an HOA, buyers should understand what benefits it provides like maintenance, security, or communal amenities and how the fees factor into their overall budget.”

HOA fees can be worth it if the perks align with your lifestyle. But they’re not for everyone. The most important thing is knowing what you’re signing up for before you buy.

🏡 Thinking of buying in a community with (or without) HOA fees? Let’s connect. I’ll help you weigh the pros and cons so you can find the home and the lifestyle that's right for you. Schedule a consultation today!