Roughly six million residents of Texas, or about 20% of the population, live in homeowner associations (Amplify Credit Union). If you're one of these HOA-dwelling residents, you have good reasons why you opted to buy an HOA property.
One of the biggest reasons is the heightened ability of these properties to maintain or gain value compared to similar non-HOA homes. Unless you're a real estate professional, you must be wondering why this is the case.
Well, it's not magic. There are fundamental forces behind HOA home value. This article takes a look at three key ones. Read on!
1. Financial Wellness of the HOA
An HOA has communal assets like clubhouses, swimming pools, gates, and driveways that don't lie with the maintenance responsibilities of a homeowner. Instead, homeowners have a collective responsibility to care for these assets, which is why everyone is required to pay HOA fees. Part of these funds go into the repair and maintenance of these assets.
Prudent management of these funds is crucial to achieving HOA home value increase. If the community's management doesn't misappropriate funds and diligently pays for repairs and maintenance, the estate's aesthetics will be maintained.
In fact, with a strong financial base, the community can invest in improvement projects, such as the addition of amenities, that will make the community more appealing, thus driving property values higher.
2. Reputation of the Community
HOAs have a reputation. A negative reputation will reduce the demand for property in a community while a positive reputation will certainly have the opposite effect.
But there's usually more to the reputation of a planned community than meets the eye. People, especially those keen on buying a property there, will want to know the specifics of the community's reputation.
For example, if a community has established a reputation of being a good place to live, people will want to know whether it's simply because it's in a great location, or because it has a board that does a good job.
3. Market Conditions
Location is one of the biggest factors influencing real estate value. HOA real estate in Dallas is no exception.
While an HOA can do all it can within its powers to maintain the high standards of the community, it has little control over the prevailing market conditions. When the economy slides into a recession, for instance, the housing market may slow down and property values may decline.
When you're looking to buy or sell HOA property in Dallas, it's important to keep an eye on the conditions in the local market. Sell when it's a seller's market, and buy when it's a buyer's market.
HOA Home Value in Dallas Explained!
HOA home value no doubt drives the decisions of many property buyers, but you ought to understand how it works so that you can make an informed investment decision.
In Dallas, TX, the best HOAs have one thing in common: they're managed by a competent association management company like PMI Premier. We are part of a national property management company that's been in the business for two decades and counting. Our services include vendor coordination, compliance, maintenance and inspections, and accounting and reporting.
Contact us to speak to one of our experts.
