Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com Rochester Real Estate | LOCAL Homes For Sale | Homes for sale in Rochester, NY, LOCAL Rochester real estate listings, market data, REALTOR® info, and high quality content updated every 15 minutes! Wed, 25 Jun 2025 11:50:30 +0000 hourly 1 https://wordpress.org/?v=6.7.2 https://www.rochesterrealestateblog.com/wp-content/uploads/2016/11/cropped-SITE-LOGO-512-x-512-1-32x32.png Homeowner Associations (HOAs): Good Or Bad? – Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com 32 32 June Home Maintenance Checklist: 40+ Must-Do Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/june-home-maintenance-checklist-summer-prep/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20501 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May Home Maintenance Checklist: 30 Essential Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/may-home-maintenance-checklist/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20484 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> April Home Maintenance Checklist: How To Prepare Your Rochester NY Home For Spring https://www.rochesterrealestateblog.com/april-home-maintenance-checklist/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20364 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> March Home Maintenance Checklist: Get Your New York Home Ready for Spring https://www.rochesterrealestateblog.com/march-home-maintenance-checklist/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20338 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Buy a House in New York https://www.rochesterrealestateblog.com/buy-a-house-in-new-york/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19906 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Sell a House in New York https://www.rochesterrealestateblog.com/sell-a-house-in-new-york/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19905 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Risks of Buying a Non-Warrantable Condo In New York: What You Need to Know https://www.rochesterrealestateblog.com/non-warrantable-condo/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19796 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Builders Should Know About Spec Construction Loans In New York https://www.rochesterrealestateblog.com/builders-spec-construction-loans/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19795 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving To The Finger Lakes Region Of New York | Guide To Relocating To The Finger Lakes https://www.rochesterrealestateblog.com/moving-to-the-finger-lakes-region/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19875 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Navigating the Numbers: The Pros and Cons of Using Online Home Value Estimators For New York Real Estate https://www.rochesterrealestateblog.com/pros-cons-online-home-value-estimators/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19794 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Role of Location in Home Valuation In New York https://www.rochesterrealestateblog.com/role-of-location-home-valuation/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19768 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Lowe’s vs U-Haul: A Review of Truck Rental Companies https://www.rochesterrealestateblog.com/lowes-vs-uhaul/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19758 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Understanding the Importance of a Seller’s Property Condition Disclosure https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19632 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What are Delayed Showings and Negotiations in Real Estate In New York? https://www.rochesterrealestateblog.com/delayed-showings-negotiations/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19547 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 8 Viable Tactics to Selling Your Home and Moving Out of State https://www.rochesterrealestateblog.com/selling-home-moving-out-of-state/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19542 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Unconventional Methods for Selling a House: Thinking Outside the Box https://www.rochesterrealestateblog.com/unconventional-methods-for-selling-a-house/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19519 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Sell My House Off Market: Pros and Cons Explained https://www.rochesterrealestateblog.com/sell-house-off-market/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19503 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What is PITI and How Does It Affect Your Mortgage https://www.rochesterrealestateblog.com/what-is-piti/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19498 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Set A Home Renovation Budget https://www.rochesterrealestateblog.com/home-renovation-budget/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19490 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Co-Borrowers Credit Scores Affect A Home Purchase? https://www.rochesterrealestateblog.com/co-borrower-credit-score/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19474 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> New Construction Final Walk-Through Checklist: Ensuring a Seamless Home Inspection https://www.rochesterrealestateblog.com/new-construction-final-walk-through/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19458 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Essential Tips for Pumping a Septic Tank: What You Need to Know https://www.rochesterrealestateblog.com/pumping-a-septic-tank/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19450 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can You Submit Multiple Offers On Homes At Once – A Legal And Ethical Analysis https://www.rochesterrealestateblog.com/multiple-offers-on-homes-at-once/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19414 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Get Your Home Photo Ready for Real Estate Listings https://www.rochesterrealestateblog.com/real-estate-photo-ready/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19409 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Home Builder’s Warranty Cover? https://www.rochesterrealestateblog.com/home-builders-warranty/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19394 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> July 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/july-2023-rochester-ny-real-estate-market-update/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19403 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Who Pays Real Estate Commission When You Buy or Sell a Home https://www.rochesterrealestateblog.com/real-estate-commission/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19366 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Quitclaim Deeds: What You Need to Know https://www.rochesterrealestateblog.com/quitclaim-deeds/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19358 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Selling a Home As Is for Cash https://www.rochesterrealestateblog.com/selling-home-as-is-cash/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19347 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Know if My House Has Paranormal Activity https://www.rochesterrealestateblog.com/is-my-house-haunted/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19342 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Why Find The History of a House https://www.rochesterrealestateblog.com/find-history-house/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19316 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> June 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/june-2023-rochester-ny-area-real-estate-market-update/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19313 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Real Estate Lawyer Do? https://www.rochesterrealestateblog.com/real-estate-lawyer/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19181 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/may-2023-rochester-ny-area-real-estate-market-update/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19162 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Buying a Home For The First Time https://www.rochesterrealestateblog.com/buying-home-first-time/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19058 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>What Should a Buyer Look For at a Home Inspection?</strong> https://www.rochesterrealestateblog.com/what-look-for-home-inspection/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18983 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Companies That Buy Houses For Cash Reviewed https://www.rochesterrealestateblog.com/companies-buy-houses-for-cash/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18889 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Does Home Staging Work and What is The Cost? https://www.rochesterrealestateblog.com/does-home-staging-work/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18814 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Avoid When Getting a Mortgage https://www.rochesterrealestateblog.com/avoid-when-getting-mortgage/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18797 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>5 Options For Replacing a Roof Reviewed</strong> https://www.rochesterrealestateblog.com/replacing-roof/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18771 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are Restrictive Covenants in Real Estate? https://www.rochesterrealestateblog.com/restrictive-covenants/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18714 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can The Court Force The Sale of Your House in Divorce? https://www.rochesterrealestateblog.com/court-force-sale-divorce/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18693 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Real Estate Agent vs. Broker: What&#8217;s The Difference? https://www.rochesterrealestateblog.com/real-estate-agent-vs-broker/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18650 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Determine Square Feet In Your House For More Accurate Property Estimates https://www.rochesterrealestateblog.com/determine-square-feet/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18167 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 3 Things That Often Results in a Real Estate Agent Getting Sued https://www.rochesterrealestateblog.com/real-estate-agent-sued/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18133 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Top 5 Types Of Home Inspections Buyers Should Consider https://www.rochesterrealestateblog.com/5-types-home-inspections/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18119 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Pros And Cons Of Rent To Own Homes: What You Need To Know https://www.rochesterrealestateblog.com/pros-cons-rent-own-homes/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18104 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Smart Things To Do Before Moving That Will Help Ease Your Transition https://www.rochesterrealestateblog.com/things-before-moving/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18084 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Become a Real Estate Agent https://www.rochesterrealestateblog.com/become-real-estate-agent/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18071 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Renting A House Or An Apartment: Which Is The Better Option https://www.rochesterrealestateblog.com/renting-house-apartment/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17871 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The 5 Most Important Factors To Consider When Buying A House https://www.rochesterrealestateblog.com/5-factors-buying-house/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17851 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Buyers And Sellers Need To Know About An Appraisal Gap https://www.rochesterrealestateblog.com/appraisal-gap/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17827 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Pros And Cons Of Renting With Roommates – What You Need To Know https://www.rochesterrealestateblog.com/renting-with-roommates/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17794 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 6 Things You Should Know About Buying Land https://www.rochesterrealestateblog.com/things-know-buying-land/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17773 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Long Should Home Sellers Wait To Respond To An Offer On Their Home? https://www.rochesterrealestateblog.com/home-sellers-wait-respond-offer/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17745 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Buy A House With A Low Credit Score https://www.rochesterrealestateblog.com/how-to-buy-a-house-with-a-low-credit-score/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16819 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Things To Consider When Shipping A Car https://www.rochesterrealestateblog.com/things-to-consider-when-shipping-a-car/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16248 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Home Depot Truck Rentals: What to Know Including Pricing https://www.rochesterrealestateblog.com/home-depot-truck-rentals-what-to-know-including-pricing/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16156 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 16 Things To Do Before Listing Your Home For Sale https://www.rochesterrealestateblog.com/16-things-to-do-before-listing-your-home-for-sale/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16138 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Home Inspection Mistakes to Avoid https://www.rochesterrealestateblog.com/biggest-home-inspection-mistakes-to-avoid/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16112 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Your Credit Score Impacts Your Ability To Buy A House https://www.rochesterrealestateblog.com/how-credit-score-impacts-buying-house/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16086 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Selling Mistakes | 7 Errors Made While Selling A House During The Winter https://www.rochesterrealestateblog.com/top-winter-home-selling-mistakes/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16051 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Buying Mistakes | 11 Errors Made While Buying A House During The Winter https://www.rochesterrealestateblog.com/winter-home-buying-mistakes/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16013 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Address Change Form Should I Use At The Post Office? https://www.rochesterrealestateblog.com/address-change-form-post-office/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15981 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does Contingent Status Mean in Real Estate? https://www.rochesterrealestateblog.com/what-does-contingent-status-mean-real-estate/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15956 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> DIY Renovation Ideas For Your Backyard https://www.rochesterrealestateblog.com/diy-renovation-ideas-backyard/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15937 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Rent Your First Apartment Guide https://www.rochesterrealestateblog.com/how-to-rent-an-apartment/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15931 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Tips For Selling A Home Virtually https://www.rochesterrealestateblog.com/tips-selling-a-home-virtually/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15907 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Complete Winter Storage Checklist For Your Belongings https://www.rochesterrealestateblog.com/winter-storage-checklist/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15885 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Waive My Home Inspection When Buying A House? https://www.rochesterrealestateblog.com/should-i-waive-my-home-inspection/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15870 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Self Storage Companies Reviewed https://www.rochesterrealestateblog.com/biggest-self-storage-companies/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15836 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Earnest Money and House Deposits Explained https://www.rochesterrealestateblog.com/earnest-money-house-deposits-explained/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15760 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving Mistakes To Avoid https://www.rochesterrealestateblog.com/moving-mistakes-to-avoid/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15568 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Mortgage Myths | Demystifying Common Home Loan Misconceptions https://www.rochesterrealestateblog.com/top-mortgage-myths/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15102 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First-Time Home Buyer Mistakes to Avoid https://www.rochesterrealestateblog.com/first-time-home-buyer-mistakes/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14815 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 10 Tips For Adding Appeal To Your Home This Summer https://www.rochesterrealestateblog.com/10-tips-adding-appeal-to-home-this-summer/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14237 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Exploring The Merits of Smart Home Technology When Selling a Home https://www.rochesterrealestateblog.com/smart-home-technology-selling-a-home/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13782 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Frequently Asked Questions From Home Sellers https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-sellers/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2424 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First Time Home Buyer Programs In Rochester NY &#8211; Updated January 2025 https://www.rochesterrealestateblog.com/first-time-home-buyer-programs/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock http://rochesterrealestateblog.com/?p=580 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How New Doors &#038; Windows Can Boost Your Home Value https://www.rochesterrealestateblog.com/how-new-doors-windows-boost-your-home-value/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13643 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 5 Things To Know When Flipping Your First House https://www.rochesterrealestateblog.com/5-things-to-know-when-flipping-your-first-house/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13574 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The Best Mortgage Options for Self Employed Borrowers? https://www.rochesterrealestateblog.com/mortgage-options-for-self-employed-borrowers/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13450 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 10 Best Places To See Christmas Lights In Rochester NY https://www.rochesterrealestateblog.com/top-10-best-places-see-christmas-lights-rochester-ny/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=10236 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The PROs And CONs Of Multifamily Homes? https://www.rochesterrealestateblog.com/what-are-the-pros-and-cons-of-multifamily-homes/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13219 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Low-Cost Home Improvements Should You Make Before Selling Your Home? https://www.rochesterrealestateblog.com/low-cost-home-improvements-you-should-make-before-selling-your-home/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13114 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 15 Things Millennial Home Buyers Look At While Buying A House https://www.rochesterrealestateblog.com/15-things-millennial-home-buyers-look-at-while-buying-a-house/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13028 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Fence Increase The Value Of Your Home https://www.rochesterrealestateblog.com/how-does-a-fence-increase-the-value-of-your-home/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12995 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Simple &#038; Low Cost Fixes To Make Your Home More Appealing To Buyers https://www.rochesterrealestateblog.com/5-simple-and-low-cost-fixes-to-make-your-home-more-appealing-to-buyers/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12779 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Improve A Homes Curb Appeal In Rochester NY https://www.rochesterrealestateblog.com/how-to-improve-a-homes-curb-appeal-rochester-ny/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12665 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 7 Ways to Create an Energy-Efficient Home While Conserving Your Budget https://www.rochesterrealestateblog.com/7-ways-create-an-energy-efficient-home/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12633 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Hiring Movers Vs. Moving Yourself | The PROs &#038; CONs Of Each https://www.rochesterrealestateblog.com/hiring-movers-vs-moving-yourself/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12592 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should You Pay Off Student Loans Before Purchasing a Home? https://www.rochesterrealestateblog.com/pay-off-student-loans-before-purchasing-a-home/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12531 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Build A New Home Or Buy An Existing Home? https://www.rochesterrealestateblog.com/should-i-build-a-new-home-or-buy-an-existing-home/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2497 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Buying A Condo Vs. Renting A Condo | What Are The PROs &#038; CONs? https://www.rochesterrealestateblog.com/buying-a-condo-vs-renting-a-condo/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12402 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 9 Money Saving Moving Tips | How To Cut Costs When Moving https://www.rochesterrealestateblog.com/9-money-saving-moving-tips/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12341 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Create a Proper Home Maintenance Checklist https://www.rochesterrealestateblog.com/how-to-create-a-proper-home-maintenance-checklist/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12300 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Tips For Tenant Screening | How To Weed Out Bad Tenant Applicants https://www.rochesterrealestateblog.com/tips-for-tenant-screening/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12291 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Social Media Blogs For Real Estate From 2017 https://www.rochesterrealestateblog.com/best-social-media-blogs-2017/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12045 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Home Improvement Blogs From 2017 | Advice For Home Remodeling https://www.rochesterrealestateblog.com/best-home-improvement-blogs-2017/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12044 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Mortgage Blogs From 2017 | Advice For Home Financing https://www.rochesterrealestateblog.com/best-mortgage-blogs-2017/ Tue, 16 Jun 2015 11:30:52 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12043 Homeowner Associations (HOAs): Good or Bad?[/caption] A homeowners association, commonly referred to as a HOA, is best defined as, "an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction," according to Investopedia.com. One of the many decisions that is made when purchasing a piece of real estate is whether or not to purchase a piece of real estate that is part of a homeowners association or not.  As there is with most things in life, there are pros and cons to homeowners associations. Buying a condo or a home that is part of a homeowners association is a decision that only can be made by you, the purchaser.  Before you decide to purchase a home associated with an HOA, it's critical that you understand what the good things are about a homeowners association, what the bad things are about a homeowners association, and also what you should look for when deciding if a specific homeowners association is a good or bad one. So, before you sign on the dotted line, make sure you understand what is good about HOAs as well as what is bad about them, which is outlined below in detail. What Are The Benefits Of A Homeowners Association Homeowner Associations May Include Municipal/City Services When buying a home or condo that is located within a homeowners association, it's likely that you will be provided services that many municipalities will provide.  Some of the services that municipalities often provide for residents may include things such as refuse, water, and sewer use. This can be a nice benefit to living within a homeowners association that includes these services since these services can be additional costs when owning a home.  Certainly the costs of these services will vary from community to community.  For example the average monthly cost for refuse removal for an Irondequoit, NY resident is $30.00 while the cost of sewer use is included as part of the yearly taxes. Homeowner Associations May Include Insurance Most homeowner associations include what is called, "master insurance."  Master insurance is an insurance policy that covers parts of the real property that is shared by all the homeowners.  Master insurance policies often cover items such as roofs, common walls, structures, basements, elevators, and other shared items. The master insurance is a nice benefit to purchasing real property that is part of a homeowners association, however, keep in mind that master insurance does not cover the entire piece of property.  The homeowner, in most cases, is still responsible to carry a homeowners insurance policy that covers their personal belongings and other parts of the property. Homeowner Associations May Include Maintenance [caption id="attachment_2777" align="alignleft" width="450"]Some Homeowner Associations May Include General Maintenance Some Homeowner Associations May Include General Maintenance[/caption] Another benefit to buying real estate that is part of a homeowners association is that many include maintenance.  The majority of homeowner associations only include maintenance for the exterior of the property.  This includes things such as exterior painting, roofing maintenance, and landscaping. Homeowner Associations May Include Utilities Some homeowner associations will include the use of electric and heat.  While it's not impossible that a town home or single family home that is part of a homeowners association to include these utilities, it is more common that they are included in condominiums.  This is obviously a huge benefit for owning a piece of real estate in a homeowners association as the cost of electric and heat can often be very expensive, especially for those who live in climates that have extreme weather. Homeowner Associations May Include Amenities One of the biggest benefits to owning a home that is part of a homeowners association are the amenities that maybe included.  Many communities that have homeowners associations include use of a common community center, frequently referred to as a "clubhouse."  This clubhouse is an area that the association residents can gather to relax and mingle with other residents. Other amenities that are commonly provided by a homeowners association include a fitness center, swimming pool, or tennis courts.  If the piece of real estate is a waterfront property, it's possible the homeowners association will provide use of private decks and beaches. What Are The Drawbacks Of A Homeowners Association Homeowner Associations Often Come With A "Hefty" Price Tag The above benefits of a homeowners association are great reasons to purchase a home that is apart of a homeowners association.  These benefits however often come with a large fee. A homeowners association fee, or HOA fee, is traditionally paid either monthly, quarterly, bi-annually, or annually.  Depending on the number of amenities or services that are included in the association fee, the cost can be very expensive. For example, during the recent sale of a Penfield, NY town home, the monthly association fee was $170.00 and did not include any amenities other than refuse removal, exterior building maintenance, and snow removal.  The yearly cost of $2,040 is significantly higher than it would cost for a homeowner who is not part of a homeowners association. Homeowner Associations Fee Can Increase One of the biggest drawbacks to homeowner associations is that the HOA fee can increase.  When a homeowners association decides to increase their fee, the homeowner has virtually no say in whether the fee increases or not. The majority of homeowner associations will raise the HOA fees every couple years.  Some increases are significant and some are relatively minor.  It's important that before you purchase a home that is apart of a HOA, you take into consideration what an increase in the HOA fee would mean to your budget. Homeowner Associations May Have Many Restrictions [caption id="attachment_2778" align="alignright" width="450"]Homeowner Associations Can Have Many Restrictions Homeowner Associations Can Have Many Restrictions[/caption] Restrictions in homeowner associations can be very frustrating to a homeowner.  Many HOAs restrict the types of plants, shrubs, and bushes you're able to plant.  These are just a few examples of the restrictions that are common within a homeowners association.  Other homeowners association restrictions include:
  • The number of vehicles allowed per residence
  • Pets
  • Play sets
  • Fencing
  • Mailboxes
  • Decorations
Homeowner Associations May Require Board Approval For Certain Projects Another drawback to owning a property that is part of a homeowner associations is that many projects will require board approval.  The process to get board approval for special projects can often be very tedious, time consuming, and unfortunately is frequently unsuccessful. The most common first step to obtaining board approval for a special project is filing a variance request or special request.  This normally is required to be submitted in writing several months before the homeowner associations next board meeting.  Once your request is submitted, it may take several months to receive a response. Tips To Determine Whether A Homeowners Association Is Good Or Bad Review And Understand The Bylaws When purchasing a property that is apart of a homeowners association, one of the most important steps is to review the association Bylaws, sometimes known as covenants, conditions, and restrictions (CC&Rs). A common contract contingency for buyers who are purchasing a property that is apart of a homeowners association is the ability to review the bylaws within a specified number of days after acceptance.  Not only is it a good idea for the home buyer to review the bylaws, but also it's suggested their attorney reviews them as well to ensure they are not getting involved in a bad situation. Know Who The Management And Maintenance Companies Are Homeowner associations are often associated with management companies.  The management companies are often responsible for the finances and other various day to day functions.  It's important that when determining whether a homeowners association is good or bad, you know if there is a management company overseeing the HOA.  If so, it's a very good idea to research the company to ensure they have a good reputation. Homeowner associations are also frequently associated with maintenance companies.  Obviously the residents aren't completing the maintenance around the community, so it's important to know who is in charge of maintenance.  Finding out who is responsible for exterior repairs, roofing repairs, landscaping, refuse, and other services is important when determining whether the HOA is good or bad. Review The Homeowners Association Budgets And Reserves A popular saying, "Numbers Don't Lie," can certainly hold true when determining whether a homeowners association is a good or bad one.  When determining whether a homeowners association is good or bad, it's strong suggested you request the HOAs budgets and reserve fund information. A good homeowners association should be able to provide their budgets in a clean and concise format so that you can clearly understand where the residents money is being spent. Knowing how much in reserves a homeowners association has is also important.  The reserve fund is important to determine the strength of an HOA, should there be need for a significant project in the future.  An HOA with a small reserve fund could be reflective of a poorly run HOA and also the possibility that large sums of money maybe requested in the future. Find Out If There Any Special Assessments Pending A good homeowners association will be able to provide information relating to special assessments.  A special assessment is a fee that is not planned for, however, requires additional money to be contributed by the residents of a homeowners association.  Some special assessments are caused by natural disasters, such as a roof being damaged during a tornado or hurricane.  This is not a repair that is able to be projected, however, a good HOA should have a strong reserve fund to cover the majority of the cost. Even though some special assessments are not planned for, many are.  Special assessments such as replacement of common area carpeting, windows, or old exercise equipment are often in the future plans.  If a homeowners association has a huge list of special assessments pending, you need to consider the additional monies that maybe required in the future. Final Thoughts Homeowner associations are not for everybody, period.  When purchasing a piece of real estate, one of the first decisions that should be made is whether you want to purchase a property that is part of a homeowners association or one that is not.  If you decide that you do want to own a property that is part of a homeowners association, you must understand the pros and cons to HOAs. In addition, it's important to understand whether the homeowners association is a good or bad one.  Buying a property that is associated with a bad homeowners association can be a big mistake and can be extremely costly in the future. Other Top Resources & Articles Regarding Homeowner Associations Are you thinking of buying a property that is apart of a homeowners association in Rochester, NY?  Or are you thinking of selling your property that is apart of a homeowners association in Rochester, NY?  The fact is, the homeowners association in which the property is apart of is extremely important.  Obviously there are benefits and drawbacks to being apart of an HOA.  If you're not sure how to start your Rochester, NY home search or how to sell your Rochester, NY home, contact me, and I'd be happy to share my expertise!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Homeowner Associations (HOAs): Good or Bad?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]>