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It's a commonly held belief that homeowners associations often aren't worth the fees that they cost. However, that belief is quickly becoming a thing of the past.
A recent study found that 63% of homeowners believe that the benefits of an HOA are worth the price. Because of this change in public perception, you're likely asking yourself, "Does an HOA increase property values in places like Contra Costa?"
If you want to learn everything you need to know about HOA home value increase, you're in the right place. We'll help you decide whether or not an HOA is right for your community, as well as how management companies can make the process easier for you.
Does an HOA Increase Property Value?
The answer is yes, HOAs do increase the overall property value within the real estate market. This is according to a study that found that properties belonging to an HOA tend to have at least a 4% price increase when compared to comparable homes.
Since many people see real estate as an investment, it makes sense to purchase property found in an HOA. Why? Because the increased property values help offset any fees associated with the HOA.
Why Are Homeowners Willing to Pay More for an HOA?
For one thing, a homeowners association often offers and maintains amenities that lead to a desirable community. This can include things like pools, grilling areas, tennis courts, golf courses, gyms, and similar add-ons.
These are all attractive incentives for prospective homeowners. Next, an HOA helps keep the neighborhood looking beautiful. Unkempt surroundings can lead to a decrease in property value which the HOA helps prevent.
Lastly, an HOA can increase value by establishing rules and regulations for the community. While this can cause some disagreements, these rules lead to a more harmonious community since everyone is on the same page about what is and isn't allowed.
How HOA Management Can Make Things Easier for Your Board
As you can see from the previous section, people are drawn to HOAs because they boost value for communities. However, if your HOA isn't being effectively run, you can forget about any increased property values.
An HOA management company helps ensure that your homeowner's association is operating at peak efficiency. We do this by handling all of the busy work like maintenance, collecting dues, and organizing financial documents.
This frees up the HOA board to focus on more big-picture issues related to the community instead of getting bogged down with the little stuff.
Ready for an HOA Home Value Increase? Contact PMI East Bay
We hope this guide helped you answer the question, "Does an HOA increase property values?" As you can see, the average HOA home value is worth more than those not connected to an association.
Here at PMI East Bay, we believe that HOAs don't need to be a headache - whether that's for homeowners or board members.
That's why we offer management services to provide you with all the benefits of an HOA without any of the hassle. If you want to learn more about how we can help your community, contact us today.
