When you see home listings nowadays, you may notice a line item for Homeowners Association (HOA) fees in the description. When seeing that line item, it can be tough for some to justify that additional monthly or annual fee without knowing specifics. Here's our breakdown of Homeowners Associations so you know exactly where your dollar goes.

What is an HOA?

Homeowners Associations (HOA) are formed to 'manage' anything within a community that is communally owned, such as a playground, pool, or communal grounds. In condominiums or townhouses, these areas are typically considered shared spaces such as, laundry rooms, co-working spaces, residential lounge, parking lot, etc. All HOA fees are a legal obligation found in the deed to your property.

Homes within these boundaries are expected to pay HOA fees and adhere to a set of rules and regulations established by the HOA association. HOA's are typically run by homeowners within the community who volunteer and are elected to a member's board of oversight that enforces these guidelines.

How much should you expect to pay?

HOA fees are heavily dependent on the property or community. Communities and buildings offering more amenities and services can be on the higher end of the range. According to Investopedia, Fees range anywhere from $100 - $1,000 a month with the latest data showing an average monthly HOA membership fee for a single-family home is around $200-$300 per month. Additional fees (assessments) may be applied due to significant community improvements; however, those decisions are typically voted on prior to fees being requested.

Understanding the different types of fees

There are several types of fees that an HOA can implement throughout your homeownership in that community.

• Regular - Monthly/annual fees for regular maintenance around the community

• Special Assessment - One-time fee for a specific community improvement project or unanticipated damage in the event of a natural disaster.

• Fine - Penalty payment for failure to comply with HOA rules and policy

Concerned about fees? Communicate with your agent and HOA.

Is there a state governing body for HOAs

The Colorado Department of Regulatory Agencies (DORA) established the HOA information & Resource Center in 2011 and requires all homeowners' associations to register with the,. The Colorado HOA information and resources provide easily accessible information and regulations to the public to understand their basic rights and duties under the Colorado Common Interest Ownership Act. DORA provides the HOA with resources where you can find information about purchasing a home in an HOA, association records, and filing a complaint about an HOA.

Navigating HOAs

For Sellers

Work with your agent to identify HOA policies you need to remember when listing your home. Depending on your specific HOA, some communities have particular guidelines on signage around the home and community.

For Buyers

It is important to identify what Home Owners Association benefits are important to you. You're buying a home, not a house, and the surrounding neighborhood can make a big impact.

We work closely with Denver communities and are familiar with typical HOA standards. We'll ensure that not just your home is right - but the HOA too.