How to Spot and avoid a Disastrous HOA When Buying Real Estate in Eastern Pennsylvania or New Jersey

If you are looking to buy a home in eastern Pennsylvania or New Jersey, it’s important to know before you buy if there is a homeowners association (HOA), and how well it operates.  When it comes down to what the difference is between a good and downright disastrous HOA, it goes further than just other homeowners’ opinions.  Before buying a property with an HOA there are a few things you should look into.  If you do not do your homework before you buy you could end up paying a large special assessment for years to come.

Begin by assessing the community as a whole.  If the HOA is currently responsible for the maintenance of the buildings, which many are if purchasing a condominium, look to see if it is well maintained.

Don’t overlook these things.

• Are all buildings being well maintained or are they showing signs of needing repair?
• Are common use areas well maintained? Do parking lots need resurfaced?
• If the community has amenities, are they are all in working order? Does the pool need repairs? Is the gym equipment in working order?
• If the HOA is responsible for roof maintenance does it look like it is in need of replacement soon?
• Are the grounds around homes well maintained?

If buildings throughout the community are in need of repair, or the amenities are not in working order, a special assessment may be leveraged to help pay for the cost of repairs.  One recent study showed that close to 70% of HOA’s across the nation are underfunded. This means you as a homeowner may be forced to pay large special assessments in the future to complete any work that needs to be done.

Be proactive and ask to speak with the current HOA management company and find out if there have been any special assessments in the past, and if so how often. It is also good to know if there have been any lawsuits or any pending lawsuits against the HOA.  If the management company is not forthcoming with the information add to your contract that the seller will provide you with this information prior to closing.

Do not buy a property with an HOA without first reading the covenants, rules, latest meeting minutes, and pay attention to what happens when you violate a rule.  An experienced Realtor can help you throughout this process.

If you are looking to buy or sell your eastern Pennsylvania or New Jersey home this fall, The Silva Group would be delighted to help.  Contact us at any time or feel free to call us directly at (267) 202-4955.

The Silva Group is comprised of Philadelphia and New Jersey’s best and brightest in the real estate industry. Our team is more than a bunch of real estate agents packed into an office – we are friends and family members who all have one passion – to provide the very best real estate experience possible to our clients.