It's estimated that 74.2 million Americans live in an HOA. When many people hear about HOAs they tend to only picture the downsides. This might include fees or some of the rules that come with any community.
Sadly, rarely do people talk about the many benefits that come with a homeowners association. An HOA has the potential to increase the property values of all the homes within a community.
So what is the relationship between an HOA and home value? And how can an HOA management company help your HOA board? In this HOA home value guide, we'll answer these questions so you can decide if an HOA is right for your Tacoma home.
HOA Home Value: The Connection
Buying a home is no small decision. As such, you want to consider every possible property value angle when you purchase one. By and large, homes found in an HOA community tend to be of higher quality, both in terms of the home itself and the surrounding area.
Usually, this is thanks to a diligent HOA board that makes sure everything is perfect for community members. This isn't just for show. It can have a tangible effect on a rising home value.
One study found that HOA homes tend to be worth 4% more than similar homes found outside of an HOA community. So yes, if your home is located in an HOA, it will likely be worth more.
What Are the Benefits of an HOA?
Part of the reason HOAs raise home values is because of the many benefits they bring to a neighborhood. Some HOA fees will go toward maintaining a beautiful outdoor community.
This includes things like landscaping, maintaining sidewalks, and installing signs. Fees can also go toward adding desirable amenities to a community, like pools, clubhouses, parks, playgrounds, and more.
HOAs are also great for handling potential disputes among homeowners. They enforce uniform codes to make sure the exterior of everyone's home looks great. Check out this guide to learn the full list of the benefits of an HOA.
How an HOA Management Company Can Help You
It's important to note that an HOA will only increase property value if the board does a good job of taking care of the community. Sadly, sometimes HOA boards are overwhelmed by everything they need to do.
This can hurt the property value in a community because people are paying HOA fees without seeing much in return. The solution lies in an HOA management company.
These companies handle all of the busy work which allows the board to focus on more big-picture items. Just make sure you choose the right one.
Need HOA Management Help? Contact PMI Cascade
We hope this HOA home value guide helps you learn more about the relationship between an HOA and property value. Here at PMI Cascade, we know that many communities want to benefit from the value increases that come with an HOA.
Sadly, they lack the expertise to accomplish this. Luckily, with our twenty years of experience working with associations, we can implement every trick in the book to optimize your HOA.
If you're ready to start increasing your property values in Tacoma, get in touch with us today.
