Home Purchase and HOA's

Q. I’m thinking about buying a house that’s part of a homeowners’ association. What do I need to know before I buy?

A. You will, of course, be told the fee structure, but it’s wise to do some research. Here are some tips you might consider:

  • Ask to see a copy of the covenants and regulations before you buy the house. Find out if there are rules against things that may affect your decision to buy, such as basketball hoops, outside storage units, and rules about pets.

  • Make sure the home you want is currently in compliance with the rules.

  • Ask to see the financial statements. Look for how the money is spent and how much the association has set aside in reserve. In general, 20 to 25 percent of your dues should go toward the reserve fund.

  • Ask if there are any assessments planned or being discussed.

  • Ask to see copies of some recent meeting minutes. It’ll give you a general flavor of the meetings and the issues being discussed.

  • Find out if the association has any history of litigation.

  • Try to speak with the association president, as well as some of the homeowners who aren’t on the board. It’ll give you a good idea of the association’s “personality” and reputation in the neighborhood.

If you have any questions, or need helpful and trustworthy real estate representation, please call Jessica Dodge at (512) 514-1700.

Dodge Team Properties at Keller Williams 1801 S. MoPac Expwy, Ste 100 78746