What Buyers Should Know About HOA Fees Before Purchasing a Home

When you’re buying a home, your focus is likely on big-ticket items like mortgage rates, home prices, and how much you need for a down payment. But one often-overlooked factor that can impact your budget is the homeowners association (HOA) fees.

While not every property is part of an HOA, it’s becoming more common—especially in newer neighborhoods. That’s why it’s important to understand what HOA fees are, what they typically cover, and how they can affect your homebuying decision.

What Is an HOA and Why Does It Matter?

A homeowners association is an organization responsible for managing a residential community, including shared spaces and common amenities. They also enforce neighborhood guidelines to ensure the community maintains a certain standard of appearance and functionality.

For some buyers, HOA fees can feel like an unwanted monthly expense. For others, the services and perks offered are well worth the cost. Understanding both the benefits and limitations will help you determine if an HOA fits your lifestyle and goals.

The Benefits of Living in an HOA Community

If you’ve ever admired a community for its beautifully manicured lawns, tidy streets, or consistent curb appeal, there’s a good chance a well-managed HOA is behind it. Here are some common benefits:

• Neighborhood Upkeep: Many HOAs cover services like landscaping, snow removal, and maintenance of common areas—helping the neighborhood look clean, safe, and inviting.
• Access to Amenities: Some HOA communities offer features like pools, gyms, clubhouses, parks, or even private security. In many cases, these perks can replace the need for separate memberships or services.
• Protection of Property Values: Because HOAs enforce community standards, they help prevent neglect and preserve the overall appeal of the neighborhood—which can positively impact your home’s value.
• Shared Maintenance Responsibilities: In some communities, exterior upkeep (like roof repairs or exterior painting) may be included, lightening the load for individual homeowners.

How Common Are HOA Fees?

Not all homes come with HOA fees, but they’re increasingly common—especially in newer builds. In fact, more than 80% of new single-family homes built today are in HOA-governed communities, according to the Wall Street Journal.

And it’s not just new construction—many resale homes are located in established HOA neighborhoods as well. In 2024, Axios reported that approximately 4 out of every 10 homes in the U.S. fall under an HOA.

What Do HOA Fees Typically Cost?

HOA dues vary depending on the community and what they cover. Some are billed monthly, others quarterly or annually. The median monthly HOA fee is currently around $125, but some can be much higher if luxury amenities or extensive services are included.

When house hunting, be sure to ask your Usaj Realty agent which homes do or don’t have HOA fees—and how those costs may fit into your monthly budget. Understanding the full financial picture will help you make a confident and informed decision.

Things to Consider Before Buying in an HOA Community

Before purchasing a home with an HOA, make sure to:

• Review the HOA rules and bylaws so you understand any restrictions (e.g., paint colors, rentals, pets).
• Evaluate the value of the services offered in exchange for the fees.
• Consider your lifestyle—do the amenities enhance your day-to-day life, or would you prefer more independence?

Communities in Denver with the Best HOAs

Cherry Creek – In the Cherry Creek neighborhood, Denver elegance meets urban chic. Post-war brick bungalows and cottages settled alongside multi-family developments and large luxury homes.

Belcaro – Belcaro is comprised of 193 homes and it remains a highly sought after neighborhood in which to live.

Hilltop – The Hilltop neighborhood, known for its upscale vibe, stands out as one of the most prestigious areas in Denver.

Sloan’s Lake – Sloan’s Lake in Denver offers a diverse range of housing options, spanning from historic Victorian homes to charming bungalows, contemporary duplexes, and modern condos.

Platt Park – Located just to the southwest of Washington Park and on the other side of I-25, the Platt Park neighborhood is quaint and energetic, and homes are typically priced lower than that of its better-known counterpart.

Final Thoughts

Choosing a home in an HOA community comes down to personal preference and priorities. Some buyers love the convenience and sense of community that comes with it, while others prefer more autonomy over their property.

At Usaj Realty, we’re here to help you navigate all the ins and outs of buying a home—including whether an HOA is a good fit for you. Let’s connect and talk about your goals—your perfect home is out there, and we’ll help you find it.