Property value is one of the most frequently addressed problems in HOAs. It's no surprise that maintaining property prices growing is a shared priority that everyone can agree on when a council of homeowners manages the neighborhood. But what factors contribute to an HOA home's increased value? What jeopardizes the value of your home? We've discovered that several prevalent fallacies are circulating there, causing house value myths and chaos in their wake.
It would be best if you were thinking about the long-term value of your home, but not everything people think is related to protecting the neighborhood. Shared value has any relation to home values at all or not the relationship you think. So let's dive into the top four common myths about HOA property values.
Myth 1: Homes Must Look Uniform to Maintain Property Value
The single most controversial issue in HOAs is home uniformity. Is it essential for every home to have the same exterior color and roof shingle? Will your home values plummet the moment someone paints them a deep ocean blue instead of moss charcoal or khaki beige? No.
It's often easier to enforce strict rules, however, than to make on neighborhood aesthetics. In truth, a home with unique beauty can undoubtedly have high and rising home values. The key is that each home contributes to the beauty of the entire neighborhood, with architecture and color palettes just similar enough to please the eye on walks and tours.
Myth 2: High Dues Relate to High Property Values
An HOA that charges high dues must have high property values. Not necessarily. This common misconception is often mixed with "Watch out for extra high dues" and "Watch out for extra-low dues."
The dues and HOA fees get determined by the value and upkeep of the neighborhood facilities. Great amenities can raise property values, and many homeowners will agree that great amenities are worth higher dues, but the two are not directly related. Low dues may mean that an HOA has excellent home values and very efficient budgeting. High dues can mean great amenities or inefficient money management.
In reality, you'll want to ague the value of dues to amenities, the age of the neighborhood, and the actual value of the homes separately for every HOA.
Myth 3: Renters Lower Property Value
There is a widespread stigma against renters in the neighborhood. The renter to homeowner ratio indeed has some influence on local insurance, but renters do not lower the value of local homes. Instead, renters are often future homeowners who aren't ready to buy yet. Neighborhoods welcoming to renters often find that these "temporary" residents are here to stay and very interested in buying goods in the neighborhood when they get the chance. Therefore, the number of homes renting in your neighborhood does not influence home values in any measurable way.
Myth 4: HOA Living is Effortless
Finally, it gets frequently argued that being a member of an HOA offers property value with little to no work. This statement is only half accurate. Many HOA residents choose not to participate in community administration but reap the benefits of facilities, local upkeep, and enjoyable community events. Often, the homeowners in charge are those willing to volunteer. Never assume an HOA is a free ride. It all depends on the HOA and the current council whether your HOA will be adrift down the lazy river or a snarl of mismanagement.
HOA living can be advantageous if you choose a neighborhood that matches your style as a homeowner and professional. However, curb appeal, the local market, and the general upkeep and beauty of your neighborhood all have an impact on your property's worth. In addition, your HOA dues, renter ratio, and perfect uniformity play less of a role in property values than most people realize.
