Austin real estate has been a bit of a roller coaster over the last few years. However, those of you who have been paying attention may notice that property values have declined in the area.
In January 2023, the median home value in Austin declined 6.6% compared to the same time last year. For those of you concerned about your declining home value, you may be looking to form an HOA to stay on top of this.
How do HOA and home value relate to each other? This guide breaks it down.
Increasing Curb Appeal
One of the biggest things that an HOA can do is make a proactive effort to increase curb appeal. Realtors place this as one of the most important things a homeowner can do to increase home value. This is so much so that 99% of realtors suggest homeowners do this to get a higher offer for their homes.
So, what are some things that an HOA can do to help with this?
For one thing, they can manage the landscaping services that homes need. This includes making sure that lawns are mowed regularly, trees in the neighborhood are managed properly, and extra plants are planted to increase the beauty of the property.
Then, there are enforcing rules centering around curb appeal for the community. One of these rules can be what colors you are allowed to paint your house.
Typically, it is ideal for houses in the neighborhood to be on the same page about this. That is because if one house decides to paint their house an unappealing color, it can impact the value of all of the houses surrounding it. After all, neighbors may consider it an eyesore.
So, an HOA may prohibit homeowners from painting their houses in certain colors, such as black or pink. Instead, they may be stuck with neutral colors such as brown, white, and gold.
In other words, HOAs tend to make a more proactive effort to maintain curb appeal.
Another thing that HOAs can do for your neighborhood is place investments in the community. This includes common areas that can offer amenities for everyone who lives in the community.
Some examples of these things include playground equipment, a community swimming pool, barbecue grills, and more.
HOAs can collect all of the HOA fees and use those fees to put money back into the community. As a result, they can help create a community rather than just random houses right next to each other. Then, people may desire to live in a community and it could increase demand for housing there as a result.
Learn More About an HOA and Home Value
These are just a couple of reasons why an HOA and home value are connected.
An HOA makes a proactive effort to increase the home value of all of the houses in their community. To do this, they tend to specifically address issues such as curb appeal and stay on top of it.
Also, they can collect a pool of money in HOA fees from the neighborhood and invest the money back into the community.
Do you want to know more? Message us here with your questions.