Questions to Ask About Homeowner Associations

First-time home buyers are being priced out of many real estate markets around the country. Let's face it: lots of cities have experienced 25% appreciation or more per year over the past four years. As a result, prices for single family homes in many major metropolitan areas are just beyond the reach of new homeowner wannabes.

Some buyers are turning to 40- or 50-year mortgages and hybrid financing instruments to keep their payments reasonable. But increasing numbers of home buyers are turning instead to lower-priced condominiums and townhomes because they can buy more home for less money. However, along with that apartment, co-op or condo comes a homeowner's association (HOA) that governs the units and complex.

Some HOA regulations are downright oppressive and restrictive. Some can't afford to pay for deferred maintenance. Others are caught up in costly court battles. Find out which questions to ask about homeowner associations to determine if you're buying into a gold mine or a money pit.

• Questions to Ask a Real Estate Agent
  
• Questions to Ask a Mortgage Broker
  
• How to Write Purchase Offers