Don’t Overlook This Key Cost: What to Know About HOA Fees Before Buying

When shopping for a home, it’s easy to focus on things like interest rates, list prices, your down payment, and closing costs. But one often-overlooked factor is homeowners association (HOA) fees. These aren’t part of every home, but they’re increasingly common depending on the area and they can impact your budget and lifestyle.

HOAs are organizations that help manage and maintain certain neighborhoods, especially those with shared spaces and amenities. They also enforce community standards. Some buyers see this as a great bonus, while others view the monthly or quarterly fee as a downside. What really matters is understanding what those fees include and whether the trade-offs make sense for you.

Why Buyers Appreciate HOAs

You may not realize it, but when you’re drawn to a neighborhood for its pristine landscaping, clean streets, or upscale feel, an HOA is likely behind it. Here are a few reasons buyers often find HOAs worthwhile:

• Well-Maintained Communities: HOA fees typically go toward things like lawn care, snow removal, and general upkeep of shared areas—helping maintain a polished look throughout the neighborhood.

• Access to Amenities: Depending on the community, HOA fees might include access to extras like pools, fitness centers, clubhouses, parks, or even neighborhood security. These can save you money elsewhere, such as gym memberships or pool passes.

• Protecting Home Values: Because HOAs set and enforce community rules, they help prevent properties from deteriorating—meaning neighboring homes won’t hurt your property value with neglect or eyesores.

• Less Exterior Maintenance: Some HOAs even handle things like roofing or paint for townhomes or shared units, reducing the workload for homeowners.

HOA Fees Are Becoming the Norm—Especially in Newer Areas

Not every property will have HOA fees but many do. Newer neighborhoods, in particular, are often part of planned communities with HOA involvement. In fact, over 80% of newly built single-family homes in recent years include an HOA, according to the Wall Street Journal. And it’s not just new builds... older homes can be part of HOA communities, too. Axios reported that about 4 in 10 homes had an HOA in 2024.

How HOA Fees Affect Your Home Search

When touring homes or browsing online, it’s worth asking about HOA fees early in the process. Some homes have no fees at all, while others might charge monthly, quarterly, or even annual dues. For reference, the national median HOA fee last year was $125/month, according to Realtor.com.

The value of these fees often comes down to what they include. As Danielle Hale, Chief Economist at Realtor.com, puts it:

“When considering a home with an HOA, buyers should work to understand what benefits it provides like maintenance, security, or communal amenities, and how the HOA fees factor into their overall budget.”

Here’s the Bottom Line

Before making an offer on a home within an HOA, be sure you fully understand the rules, costs, and benefits that come with it. Some HOAs enhance your living experience, while others might feel too restrictive or pricey depending on your lifestyle.

Have questions about which homes have HOA fees or what to watch for in a specific neighborhood? I'm here to help!

Call me, Teresa Hill, for expert advice and guidance on your next home. I’d love to walk you through the buying process and help you find the perfect fit. Fees and all!

*Information sourced from Wall Street Journal, Axios, Realtor.com, & Keeping Current Matters