I understand what HOA’s do, and was first introduced to the term in a condo building (not mine). I understand in a condo building, or high rise, you’re all sharing one building and need to contribute to that building’s maintenance. But I don’t understand HOA’s in neighborhoods…when you live in your own house. Is it only certain neighborhoods? I know someone who lives on a nice street in a suburb and there’s no HOA. Who decides if there is one, and what do neighborhood HOA’s exist for? Are you allowed to opt out?
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The idea is that a large part of the value of the house is the location. Of all properties. The value of surrounding properties affect the value of the property itself. So an HOA is an attempt to prevent the value of the surrounding properties from decreasing, so that the value of the property itself does not decrease with it.
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