Buying a Home With an HOA in the Philly Suburbs:
What You Need to Know Before You Commit
Summary
Homeowners Associations (HOAs) are increasingly common across the Philadelphia suburbs, especially in townhomes, condos, and newer single-family developments. For some buyers, HOAs offer convenience and predictability. For others, they introduce restrictions, costs, and long-term risk they didn’t fully anticipate.
The problem isn’t that HOAs are “good” or “bad.” It’s that many buyers commit to them without understanding how they actually function — financially, legally, and practically.
This guide breaks down what HOAs really control, what they cost, where buyers get caught off guard, and how to evaluate whether an HOA aligns with your lifestyle and financial goals before you buy.
Table of Contents
Why HOAs Are So Common in the Philly Suburbs
What an HOA Actually Does (and Doesn’t)
Monthly Fees vs. True Cost of Ownership
Rules, Restrictions, and Enforcement
Reserve Funds and Special Assessments
HOAs and Resale Value
Townhomes vs. Single-Family HOAs
Red Flags Buyers Should Watch For
When an HOA Is a Smart Choice
The Strategic Takeaway
1. Why HOAs Are So Common in the Philly Suburbs
HOAs are most prevalent in:
Townhome and condo communities
Planned developments
Newer suburban construction
In areas like Montgomery, Chester, Delaware, and Bucks Counties — as well as parts of South Jersey — HOAs allow municipalities and developers to:
Shift maintenance responsibility off the township
Standardize appearance and upkeep
Control shared infrastructure
As a result, buyers increasingly encounter HOAs even when shopping for single-family homes.
2. What an HOA Actually Does (and Doesn’t)
At a basic level, HOAs exist to manage shared interests.
They commonly handle:
Exterior maintenance (sometimes)
Roofs and siding (in townhomes/condos)
Landscaping and snow removal
Private roads or common areas
Amenities like pools or clubhouses
What they don’t always handle:
Interior repairs
Windows and doors (depends on documents)
Utilities
Individual unit systems
Buyers often assume more is covered than actually is — which leads to budgeting surprises later.
3. Monthly Fees vs. True Cost of Ownership
One of the biggest mistakes buyers make is focusing only on the monthly HOA fee.
That fee may:
Increase over time
Exclude major capital expenses
Mask underfunded reserves
A low monthly fee is not automatically good news. In some cases, it signals that:
The HOA hasn’t adequately funded reserves
Deferred maintenance is accumulating
A special assessment may be coming
Buyers should evaluate HOA costs the same way they evaluate taxes — as part of total cost of ownership, not as a standalone number.
4. Rules, Restrictions, and Enforcement
HOAs don’t just manage money — they manage behavior.
Common restrictions include:
Exterior paint colors
Landscaping choices
Fence and deck rules
Parking limitations
Rental restrictions
Some HOAs are flexible. Others enforce rules aggressively.
Buyers who value autonomy should pay close attention to:
Architectural review requirements
Fine schedules
Enforcement history
The rules aren’t just theoretical — they’re enforceable contracts.
5. Reserve Funds and Special Assessments
This is where HOA risk becomes real.
Reserve funds are savings set aside for:
Roof replacement
Road resurfacing
Major exterior repairs
Infrastructure upgrades
If reserves are insufficient, the HOA may issue a special assessment — a one-time (or recurring) charge to owners.
Special assessments can range from:
A few hundred dollars
To tens of thousands per unit
Buyers should always review:
Current reserve balances
Recent or planned assessments
Engineering or reserve studies
Skipping this step is one of the costliest HOA mistakes buyers make.
6. HOAs and Resale Value
HOAs can either support or suppress resale value.
Positive impacts:
Consistent exterior appearance
Predictable maintenance
Appealing shared amenities
Negative impacts:
High or rising fees
Restrictive rental policies
Poor management reputation
Some buyers actively seek HOAs. Others filter them out entirely. That buyer preference affects liquidity when it’s time to sell.
7. Townhomes vs. Single-Family HOAs
HOA impact differs significantly by property type.
Townhomes and Condos
HOAs are unavoidable
Fees are typically higher
Exterior maintenance is often included
Financial health of the HOA is critical
Single-Family Homes
HOAs may be lighter-touch
Fees may cover only common areas
Restrictions still apply
Buyers often underestimate long-term rule impact
Understanding which type of HOA you’re buying into matters just as much as the fee amount.
8. Red Flags Buyers Should Watch For
Buyers should pause if they see:
Very low fees with extensive responsibilities
No reserve study or outdated financials
Frequent special assessments
High delinquency rates among owners
Vague or poorly written governing documents
These issues don’t always kill a deal — but they should change how you evaluate price and risk.
9. When an HOA Is a Smart Choice
HOAs make sense when:
You value convenience over control
Exterior maintenance would otherwise be a burden
The HOA is well-funded and professionally managed
Rules align with how you want to live
For many buyers, HOAs offer predictability and simplicity — as long as expectations are realistic.
10. The Strategic Takeaway
Buying into an HOA is not just buying a home — it’s joining a governing structure with financial and legal authority over your property.
Smart buyers:
Read the documents
Review the financials
Ask uncomfortable questions
Budget beyond the monthly fee
HOAs aren’t inherently risky. But ignorance is.
Closing Thought
An HOA can protect value, simplify ownership, and reduce day-to-day stress — or it can quietly erode flexibility and increase long-term costs.
The difference comes down to due diligence.
Buyers who understand what they’re committing to make confident decisions. Buyers who don’t often learn the hard way — after closing.
By Eric Kelley, Philadelphia Suburbs Realtor & Attorney