Upholding beautification rules, maintaining attractive amenity offerings, community area landscape maintenance, and more. Depending on your home, these are all potential functions of HOAs (Homeowners Associations.) Who knew that these three letters could have such an impact on your home-owning experience?
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The National Association of REALTORS® defines an HOA as an organization in a residential community that creates and enforces rules for the properties and residents within its jurisdiction. HOAs can play many roles but ultimately aim to protect property values within a community. The running of an HOA is designed to be a democratic process where members are elected and serve finite terms. Any homeowner interested in a leadership role within their community is welcome to run for a seat on the board.
Not only are HOAs a prevalent feature in many Charlotte and surrounding area communities, but they can also significantly influence property value, marketability, and overall living experience.
To help us unpack everything we need to know about HOAs – going into what’s expected to be a competitive year in real estate – we sat down with Realtors from Helen Adams Realty (HAR) for their perspective.
Meet the Panel
Debra Aase-Farnum
NC & SC REALTOR®
With a background in business and design, Debra Aase-Farnum is enthusiastic about the individual aesthetic of “home”. She has lived in the Charlotte area for over 14 years and is a mom of four.
Debra is an established artist and well connected to the arts community in Charlotte. She is passionate about supporting artists and businesses locally. She sat on the Downtown Advisory Board in Union County for six years, working alongside the City Council, giving her insight into local development.
Julee Herberth
NC REALTOR®
With over two decades of living in the Lake Norman area, Julee has a deep knowledge of the local market and all the wonderful things the community has to offer. What sets her apart is her entrepreneurial background and commitment to providing a one-of-a-kind customer experience. She prides herself on delivering personalized service that goes above and beyond, so you can achieve your real estate goals with peace of mind.
Tami von Isakovics
NC & SC REALTOR®
Originally from Northern Virginia, Tami has lived on both coasts and is well-versed in cross-country moves and embarking on new adventures. Prior to relocating to Charlotte in 2019, she lived in Washington DC, San Francisco and New York City. Tami has worked with a wide variety of clients from celebrity chefs to international conservation organizations to start-up companies.
Tami lived Uptown and in Madison Park before she bought her first home in Plaza Midwood. She is licensed in both North and South Carolina.
Katherine Hickman
NC REALTOR®
As a third-generation Charlottean, Katherine loves showing off Charlotte to buyers and presenting homes for sellers. She grew up in Dilworth & Eastover and is a Myers Park alumni. She graduated from UNC-Chapel Hill and lives with her husband and son in the Elizabeth neighborhood.
Who might be interested or benefit from buying in a community with an HOA?
HOA-managed communities in Charlotte and surrounding areas tend to sell well, according to Helen Adams Realty agent Julee Herberth, adding that they’re especially popular with families seeking a cohesive neighborhood environment.
“Features like pools, playgrounds, and social events foster a sense of community and make it easier for children to connect and play safely within the neighborhood,” Julee says.
Additionally, the uniformity of homes and well-maintained appearances can contribute to higher market values, making these communities attractive to certain buyers.
HOAs are common in Charlotte’s new construction communities to uphold pre-established rules and maintain common spaces. They’re also common in condominiums or other multi-family housing communities.
“HOAs make the most sense for multi-family housing communities such as condos or townhomes that share walls – it’s important for every homeowner that their investment is maintained and protected,” says HAR’s Tami von Isakovics. So when it’s time to replace a roof or clean the gutters, everyone contributes through the HOA and you don’t need to shoulder the financial burden alone.
What should buyers evaluate or consider when it comes to HOAs?
Whether or not a home with an HOA is right for you will depend on your lifestyle, values, and goals. When asked about the benefits that come with an HOA, our Helen Adams Realty panel mentioned:
- Community living
- “Buyers are drawn to the amenities, low-maintenance lifestyle, and reduced traffic—a key concern for families with young children,” says Julee.
- Protected investments
- “HOA-managed communities can offer consistent neighborhood/building standards that help protect property values and maintain a well-kept environment. They also protect owners from larger losses by way of a master insurance policy, regular property maintenance, and community-funded reserves,” shares HAR’s Katherine Hickman.
The team also recommends that buyers consider how an HOA may impact your home-owning goals and vision:
- Buyers who seek larger lots and prioritize freedom over uniformity may not value an HOA.
- “They want to avoid additional expenses and steer clear of what they perceive as “bossy” committees and restrictive regulations,” says Julee.
- Poorly managed HOAs
- “A poorly managed HOA can be very costly to an owner,” Katherine warns. With the help of a well-informed Realtor, buyers should conduct research on the financial health of a community’s HOA before purchasing a new home.
It’s important to note that a neighborhood doesn’t need to be governed by an HOA to be desirable, attractive, or well-maintained.
“Highly desirable neighborhoods like Plaza Midwood, Eastover, and Myers Park, for example, have increased their values over the years, partially because individual homeowners care about their neighborhood and take pride in its upkeep,” says Tami. “Many areas of Charlotte also have voluntary Neighborhood Associations that organize community cleanups and other social events.”
How does the presence or absence of an HOA impact buying or selling a home?
HOAs can influence the process for both buyers and sellers. An experienced real estate agent can help you navigate the requirements and nuances from start to finish.
“It is important for me to stay up to date with the changing landscape in Charlotte,” says HAR agent Debra Aase-Farnum. “I make sure that my buyer client is informed about and has access to the by-laws, covenants, conditions, and restrictions within the community. This will give them a good sense of what is permitted as we seek to match the property with their criteria.”
“Clearly communicating this information with buyers, or with sellers when listing a home, can help prevent surprises and lawsuits down the road,” adds Katherine.
Real estate agents must also respect HOA rules while marketing their listings. “That may mean hiring someone to continue yard maintenance for a vacant property, placing the listing sign in a second-story window for a townhome listing, or using the required format for signage,” Debra explains.
Lastly, buyers and sellers should know REALTORS® rely on swift communication with HOAs and community management companies. “Timely communication is everything when you’re in the home buying or selling process. Prospective buyers may have specific questions about what’s allowed and it’s important that the board members and/or HOA management company respond quickly to these requests. A seller in the community could miss out on an offer if a buyer doesn’t hear back from the HOA in time,” explains Tami.
Ready to buy or sell now? What the panel says you need to know
Buyers can start by aligning themselves with a qualified real estate agent who can help them find the right property fit, HOA or not. Next, start doing your research.
“I always encourage buyers to check the HOA’s financial health by reviewing their budget and reserve funds to avoid surprise special assessments,” says Katherine.
Buyers should also be familiar with the Covenants, Conditions, and Restrictions (CCRs) of a property they’re interested in. This will help clarify restrictions around building structures, parking, and landscaping.
Partnering with a knowledgeable real estate agent can prove critical at this stage. “I recently had some buyer clients who wanted to build a pool in their backyard, which wasn’t specifically included in the CCRs so we secured pre-approval from the HOA board before making our offer,” says Katherine.
If you plan to rent your property, you’d also want to check on policies surrounding rental restrictions.
Lastly, plan to get involved. “Many buyers underestimate how much influence the community board has on decisions about the property/community,” says Katherine. “I always encourage buyers to get involved with the board, or at the very least, attend meetings, to have a say in the community’s directions and decisions.”
Whether you’re planning to buy this year or simply want to stay informed, understanding the ins and outs of HOAs and their impact on your experience is essential. For expert insights and a client-first approach, trust the experts at Helen Adams Realty.
