Before you buy a new home, find out if it’s subject to rules set by a homeowners association. Such rules not only can limit your activities (preventing you from cutting down trees, for example), they can impose special assessments and raise monthly fees.
Walk around the neighborhood and ask current homeowners if they’ve had problems with the association.
Examine the association’s financial statements to see if there have been special assessments.
Check to see if money has been spent on street repairs and other infrastructure components. If maintenance has lagged, you may be hit by a huge assessment in the near future.
Visit the local courthouse to see how often the association has sued residents. You may not want to be involved if the board seems lawsuit-happy.
On the other hand, there are advantages to buying in a neighborhood with a strong homeowners association. You’re less likely to be bothered by noisy neighbors, unsightly yards, and so on.
