HOA fees....correcting a wrong assumption by many
A named housing community in Florida will almost always have a “HOA” fee which stands for "Home Owners Association" and what’s in a name, is exactly what it is….an association of homeowners from that community.
Each home, regardless of its size, will pay the same amount per month/quarter/annually. Before the builder developed the community, it was the builder that decided what features and deed restrictions (for example no parking on the road, no For Sale signs to be used, length of rental period etc.) he would add to maintain the community such as gated entrance, community pool, clubhouse, park area, playground, exterior home maintenance, landscape maintenance and even pooper scoopers! All these features have to be maintained and the cost of such is budgeted by the HOA committee. That budget is sent to all homeowners for approval and the 51% approval rule means it is passed for all. At 48% approval, the HOA committee needs to review the budget. Having the HOA is good, not bad, as it “polices" the community to maintain standards and capital growth of your home. I have so many people who say I don’t want to buy there because the HOA is higher compared to others. Using a broad spectrum view on this, the more the HOA supplies to the homeowner, the higher the cost becomes per year. For a low HOA cost that means they do very little for their fee... great! we have a low fee but this is where balance comes in. The low fee home now has to pay out to Property Management for its own landscaping maintenance at $1000 to $1300 per year, its own pest control at $300 per year, his own Cable TV, Internet etc. Therefore, whether the HOA is high or low then at the end of the year they have balanced to be similar necessary costs that all homes need to address.
So pay out with one hand or two hands, it is basically all the same. With each home that I consider with my buyers, an accurate account of HOA costs is made and what they do and I will always make sure that you know that blunt truth.
I hope this has helped make a little more sense but if you are still scratching your head or have any burning questions, drop me an email on email@example.com and I would be glad to help.