If you live in a neighborhood with a homeowners’ association, you get a lot of benefits: nice amenities, a well-kept community, and a clean, attractive neighborhood. But one of the biggest advantages is that an HOA can help keep property values high. When your home’s value goes up, your investment grows, and you may be able to sell for more or build more equity over time.
Whether you’re thinking about selling your home or just want to understand how your equity is growing, a skilled Missouri real estate lawyer can explain exactly how your HOA can influence, and even increase, property sales and values in your neighborhood.
How Can an HOA Impact Property Values?
Many things affect how much a home is worth, but the appearance and upkeep of the homes by it matter quite a lot. When an HOA board sets clear rules and keeps its community in good nick, it can increase property values and sales for everyone. According to the Community Associations Institute, HOAs that put work into keeping their neighborhood looking good and running smoothly can help protect and even increase property values anywhere from 2% to 17%.
Studies also show that HOAs can boost the value of homes nearby, even if those homes aren’t part of the association. One report found that houses within two miles of an HOA sell for about 8.5% more than similar homes outside the area.
How Do HOAs Increase Property Values?
Because HOAs can have such a big effect on home values, the board should focus on the things that help keep prices high. Here are a few key areas that can improve property values and make homes easier to sell.
Landscaping and Maintenance
Since HOAs can have such a big effect on home values, the board should focus on the things that help keep prices high. Here are a few key areas that can improve property values and make homes easier to sell. HOAs usually have rules in their governing documents that require homeowners to take care of their property. These rules, called covenants, conditions, and restrictions, may require things like:
- Keeping your yard clean
- Maintaining your lawn
- Caring for garden areas
- Trimming landscaping
- Taking care of your driveway
- Fixing outside damage
Homeowners also pay dues that help take care of shared spaces in the neighborhood. This includes things like parks, walking paths, and other community areas, as well as the landscaping around them. Since basic upkeep is one of the board’s main responsibilities, the board must hire reliable vendors, manage the community’s savings (reserve funds), and make sure the neighborhood stays well-maintained.
This helps homeowners enjoy a neighborhood that looks good and runs smoothly, without extra stress or unexpected expenses.
Architectural Benchmarks
Most HOAs follow a certain style so the homes in the neighborhood look like they fit together. Popular communities often have different floor plans but a similar outside appearance, which creates a unified look that many homebuyers really like. HOAs also set rules about how the outside of each home can look so the neighborhood stays consistent. For example, owners may have limits on what paint colors they can use or what landscaping materials are allowed.
To stop changes that aren’t allowed, most HOAs have an architectural review board. This group reviews requests and helps prevent unsafe or unattractive changes, since every home affects how the whole neighborhood looks and feels.
Services and Amenities
Having shared services and amenities in the neighborhood can help raise property values. Homeowners pay regular dues to the HOA, and that money helps pay for things like:
- Community parks or alotments
- Playgrounds
- Swimming pools
- Fitness centers
- Clubhouses
- Picnic or barbecue areas
- Other outdoor recreation options
Your HOA might also plan events that bring neighbors together for fun or learning. Some communities even provide on-site security or gated entry. All of these features can make living in the neighborhood more enjoyable and can make homes in the HOA more appealing to buyers.
Regulations and Rules
People want to live in neighborhoods where they feel safe and know others take care of their homes. HOAs help make that happen by creating and enforcing community rules. Your HOA might have rules like:
- Trash and recycling rules
- Noise policies
- Street parking guidelines
- Short-term guest restrictions
- Home occupancy limits
- Pet rules
- Holiday decoration guidelines
- Architectural controls
These rules help keep the neighborhood looking nice, protect residents’ safety and comfort, and can even raise home sales and values.
Exclusivity and Community
Most folks who are looking for a home want to live somewhere that feels connected and special. They appreciate neighborhoods where their neighbors share similar values and enjoy an environment that is both warm and social.
HOA neighborhoods make it easier to form real connections with the people around you. They also offer lots of chances to volunteer and take part in community decision-making and activities. At meetings, community events, or while using shared amenities, homeowners can meet and interact with their neighbors. This sense of community is appealing to a lot of buyers and can help facilitate property values and sales in your neighborhood.
Questions? Talk to a Missouri Real Estate Lawyer
Strong HOAs help keep neighborhoods looking good, feeling safe, and staying valuable. When a community is well-run, everyone benefits, from happier homeowners to higher property sales and values. If you have questions about HOA rules, property rights, or buying or selling a home, getting legal advice from a knowledgeable attorney can make a huge difference.
Call Weggman Law Firm today at (636) 797-2665 or fill out our simple online contact form to talk with a Missouri real estate lawyer who can help you understand your options and protect your investment.
