As of Q2 2023, the median house price in the US is $416,100 - 26% higher than in 2020.
Everyone wants to live in a nice neighborhood, and when purchasing a home, you'll want it to increase in value. Various factors can affect house prices - some can't be controlled, and some can.
People often wonder what effect an HOA has on home value. In this guide, we'll explain the ways in which an HOA can increase home value in your neighborhood. Keep reading for more.
Creating a Desirable Community
When someone is looking for a new home, the community is often one of the most important considerations. In most cases, people prefer to live in a community that has a homeowners association instead of one that doesn't.
In these communities, all residents pitch in to make sure the place is enjoyable to live in. Things like community pools and tennis courts are common, and there's a greater sense of community as residents often form stronger relationships.
Formulating a Beautiful Neighborhood
You can make a home beautiful, but what about the surrounding area? If the streets are in bad shape, the value of properties will go down.
One of the responsibilities of an HOA is to take care of the neighborhood and keep it looking good. In these neighborhoods, the streets are cleaner, buildings are kept freshly painted, and there is a degree of uniformity. All of these result in higher house prices.
Maintaining Homes
Both the interior and exterior of your home will have an impact on its value. Taking care of the interior is entirely your responsibility, but there are certain external elements that an HOA will take care of, increasing the overall curb appeal.
You won't have to pressure wash the pavement outside your home, for example, as the HOA will ensure this gets done. They'll also deal with trash removal and will work with vendors to handle any landscaping that's needed. All of these make things easier for residents and help add to the value of homes in the community.
Offering Emergency Services
Certain disasters can't be avoided, and things like fires or flooding can cause a lot of damage. If these occur, finding the right companies to remedy things can be difficult, especially when you're trying to deal with the stress of the situation.
An HOA can help by finding the right companies and getting their assistance quickly. This will ensure any major issues that could reduce the value of your home are dealt with in good time.
Enforcing Rules and Regulations
There are certain rules and regulations that people in a community with an HOA will need to abide by. The HOA will enforce these rules and ensure no one is violating them.
These rules are in place to protect residents and ensure the neighborhood remains desirable. They also help prevent disputes between neighbors, thus preserving the value of the community.
The Effect of an HOA on Home Value
It's clear that an HOA and your home value are closely linked. Having a reliable HOA manager can prove beneficial for any neighborhood.
PMI of Greater Boston offers HOA services along with various other real estate services that could benefit you. Take a look at our Association Management page to find out more.
