Interesting question Robert since so many family members and friends are self-appointed experts!

I tell it like it is. HOA living has pros and cons and are situation specific. Tell me an HOA you're interested in and I'll give you my opinion of whether it's a rip-off in terms of your requirements. 

Newer communities have a HOA in our area. Once a person understands the rules they can decide it this would be a good option for them.  Some homeowners prefer the regulations and benefits from community features.  Others don't want to be told what color to paint the front door, which plants are allowed or structure limits.  

For some it's best to be involved and have their voice heard.  The dues are not that outrageous.  Each buyer needs to read the documents and make a choice. 

Robert Vegas Bob Swetz They need to be educated about the HOA fees and what they cover. Should they choose one of these neighborhoods...there is  no getting around it.

I know people who will NOT purchase any property that has an HOA. Better to know up front.

HOA's can be a good thing or not. Most of the comments I hear are open minded to them.

I explain it depends on what you are looking for in a life style.

it is a relative cost 

     HOA Covenants (Deed Restrictions) are drafted for the Builder/Developer, to protect the Builder/Developer. 

    Once the Builder has sold his inventory and is out of the picture, the HOA will be taken over by petty tyrants and bureaucrats. 

I've never had someone say HOA dues were a ripoff, but I do get a lot of buyers that don't want a community with an HOA. I get that. Some don't like the control and the politics that can be involved. 

On the flip side there are some that like having an HOA and that there are rules to follow to protect the integrity of the neighborhood. 

Being one who despises everything about HOA's I would likely agree with the relatives.

But if they want to live in this area they may need to deal with this extra layer of governement intrusion and sign up for the dues and the restrictions.

A choice the client will need to make with eyes wide open.

"How did they arrive at that conclusion"?

Robert,

I think it is important to discuss the pros and cons of HOA's.  Not all HOA" are a rip off, that is like saying all dogs are black and white....makes no sense. A

What do the HOA fees include and how strong is that HOA. That is how I judge an HOA. Not Here-say

HOA fees are controlled by the owners.  If you want to understand how the fees are being spent you need to be active on the Board or, at the very least, attending Board meetings.  Most people don't have a clue how much it costs to run a business.  The same is true about HOA's.  Knowledge can quickly dispel discontent.

To parse out the benefits of belonging to an HOA or Condominium Association you must know what amenities you receive within them. Once identified you should see some value to it and if not look elsewhere. It all begins by reading the documents prior to waiving that option in your sales contract.

Sometimes they are a ripoff!

Most of the neighborhoods in DC are way too old to have HOAs.

Fortunately, they are few and far between in my part of the world!

Well, let's take a look at what they are charging or services AND what they are providing.  Sometimes when you have group billing to the HOA for pest control for example, it is lower for the group billing then each unit would pay on its own.  Let's see the details and then decide what to do, OK?  

It really depends on the community - the HOA costs, how well it's run, what you get for the fees you pay, how much homeowners participate, and so on. And it's a personal choice since there are pros and cons. If you don't like the idea of an HOA, with rules and regulations plus the fees, then you should steer clear in your search

There are definitely pros and cons which must be first checked out. Some of our gorgeous communities are HOA's and are expertly governed and maintained.  Many are luxury country club and golf communities on our chain of lakes - 24-hour guard gated.  Fees are reasonable and cover maintenance, recreational amenities, exterior house/roof maintenance, lawn and yard upkeep and utilities such as cable/Internet, etc.

 It seems wise to keep a more watchful eye on the HOA regulations and fees of Condo property.  HOA regulations can be strict and have a low tolerance for those not attentive to the rules;  yes!  Sometimes it is very difficult to go against the wishes of the Homeowner's Association board, but wow, nice looking communities in which your property/investment increases in value.

Not all HOAs are alike. Even a specific HOA may be different now than in the beginning. When new board members are elected they often come with new agendas and a new clique of followers who feed off or bring in even more agendas.

Sometimes HOAs fail when not enough residents volunteer to effectively run the board.

In the neighborhood where I live the HOA ran with really low dues for a long time. Then the leadership discovered that expensive road maintenance work was needed. They levied a $600 special assessment, then followed closely with another $600 special assessment. No one on the board has the skill or background to hold the construction companies accountable to do quality work.

Worst of all are HOAs who have an un-holy alliance with the lawyer scumbags who profit from conflicts with the HOA.

The homeowner ALWAYS comes out the loser in these conflicts with the lawyer coming out on the winning end. In some instances, homeowners have even lost their homes to the HOAs.

I would tell them that some HOAs with higher fees and less amenities can be a rip-off but some are worth it. Personally, I think the fees in our development ($23 per month) are worth it. I also sit on the HOA board and would say that we are very fair-minded and run it well.

Ask them a  lot of questions and then drive them through a subdivision without an HOA.  Sometimes that's all you have to do.  As big a pain in the butt as they are, most of the time, they help keep the area looking good,which, in turn, helps resale.

"Some are and some aren't, it depends on what you get for the dues and if you'll use it."

Some HOAs have reasonable prices and offer a gym, pool and club house for parties.  Some just take care of walking paths.  Really just depends on the area and what you're looking for.  Had one recently that took care of greenbelts and provided a tennis court.  Cost $40 a quarter.  Seen others that are in the $250+/month range, but provide facilities, ammenities and a lake.

Morning to all just lost a deal because of the HOA company telling the client that the dues were projected to go up by twice the amount disclosed.... The client called saying no way ... Really  is that true. Let's find out.... well it was not true it had been a rumored but was not fact.... Are HOA a rip off depends on what you as a the person and or person living in the community wanting. What does the HOA offer ? Who is running the HOA ? Talk to the neighbors what are their thoughts on what is going on within the community? Are they a rip off ???? Maybe maybe not 

Oh, how long have your relatives been a licensed real estate agent?

I would tell them they can read the HOA documents fro the community and see  what they think. They can also consult an attorney. 

There are pros and cons.

You definitely get what you pay for regarding HOA fees.  Each hoa should have a budget which explains what the fee's are covering. That should help the buyer decide.

In our area, most homes in nicer subdivisions have an HOA so the buyers have no choice.

Good morning Robert,

My answer is, "HOA are not for everyone" I keep it simple and it explain what it offers.

Ask them why their friends told them it was a rip off. You will get some answers about some of the silly stuff that some associations enforce- which is only a tiny part of an HOA. Then educate them about the expenses and what it covers. In NYC, we have Common Charges for condos and a Condo Association rather than a Home Owners Association. The Common Charges pay for heat and water and elevator maintenance, mandatory city inspections, etc.- so easy to convinve owners it is not a rip off.

Some are and some are not, ultimately living in a HOA is not for everyone.

Are there amenities and services that are covered by the HOA fees that are not available in a non-HOA community? If so, there's your answer. BTW, family and friends are usually toxic in this kind of scenario.

I could see how they might feel that way.  Most HOAs are ran modestly and anyone has the opportunity to review the books and budget.  Some people just don't like the rules imposed and believe that the fees can be excessive.  

I would ask them why and engage in a discussion about the pros and cons of HOAs. 

Most HOA fees are set by the owner of the community who make up the HOA.  You would ripping off yourself.

It depends on the preferred lifestyle and anticipation of positive appreciation.

Explain both sides to them. 

It all comes down to personal choice of costs verses benefits.  Better benefits= higher costs. 

There are a place for HOAs in real estate. It is the buyers preference.

Have they ever lived where there was one?

I'd give them the honest story about that topic....

My Answer is: " Some HOA s are  rip offs, some aren't  If you like a particular condo lets look into it."    

Robert Vegas Bob Swetz Take a look at communities that don't have an HOA. You will probably see multiple cars in the driveway, commercial vehicles, boats, unkempt lawns, etc., etc.

Management of a HOA can be proftiable or loss-like. Lets investigate

There are pluses and minuses. Let look at your situation and desires.

Your family and friends have said this -- what are your thoughts?

Careful listening to their response can provide greater insight.   

Do you want to mow? Do you want to shovel? Do you want to reside your house? Get over it.

1. I'd tell them in my market it's hard to find a home that is not in an HOA.

2. I would show them that homes in my market sell faster and for more money when in an HOA (resale value needs to be considered).

Obviously, I'd also be asking what they mean by rip-off.

Tell them that the advice was bad.

Show me your wallet. I will show you homes. Median price $970,000.00 now.

Robert Vegas Bob Swetz - sometimes that may be true. However, it depends on what HOA covers - and most of the time, the owners of the homes without HOA also end up spending money on all the tasks taken care by the HOA!