Everyone gets drawn in by that “new car smell” of new construction—those model homes, landscaped entrances, and lifestyle amenities are designed to wow. That brand new entrance gate with flowing fountains and tropical landscaping and all the welcome signs inviting you in as you drive through the gate down palm tree lined streets toward the model home center. Billboard sized images of a grand amenity center or the actual one where residents are lounging, swimming, playing pickleball and enjoying life seemingly on a 24/7 vacation seal the deal. Here in southwest Florida where HOAs and planned unit developments are more common than Starbucks, the builders and developers are experts at planning, staging, marketing and selling these communities. If you are looking for a home, whether part-time, seasonal or full-time, there are a few things you should keep in mind before deciding between a new home in a new HOA community or a resale home.
PROS of HOAs
- New. That’s it. The house has never been lived in and there’s something to be said for that as homebuyers find appeal in brand new, just like they do with new cars. No fresh leather smell, but the smell of fresh paint and drywall mud lingers.
- Choices. You get to choose the floor plan that works for you. The builders make it so easy and as you tour through the many models, you decide which of these floor plans work best for your family and lifestyle. In your mind, you’re already positioning your furniture.
- Community looks like a Florida lifestyle brochure. If everything looks the same or very similar, it’s designed to provide a certain aesthetic of neatness, order and newness. The communities are beautiful and designed to be.
- Easy to buy. Most of the builder/developers in the Southwest Florida market where I serve make it very easy to buy. You need a bit more than just a pulse and a W2, but they conveniently have their own affiliated mortgage companies to make deals happen, and often entice buyers with designer upgrade credits, free golf carts or the payment of your closing costs. Piece of cake.
- Personalize. If you’re not buying an inventory home (sometimes called “Quick Move-in” or “Inventory”), you can typically choose cosmetic options – paint colors, flooring, tile, counters, etc. adding your own personal preferences and touches.
- Great amenities. Builders are selling a lifestyle and whether that lifestyle is geared toward young families or active retirees, they target their market and build accordingly. If their target market is families, you’ll see playgrounds and basketball courts and if active lifestyle is their target market, you’ll see pickleball courts and resistance pools. You get the idea so choose accordingly.
- Picturesque landscaping. Yes, it looks like something out of a magazine because the landscapes (around the models and amenity center) have been designed by professionals.
- Comes with storm protection panels. By law new construction must come with either impact glass windows OR storm protection panels. Most builders provide the metal corrugated panels because they’re cheaper than impact glass, but you do have storm protection which does not exist on older homes built prior to 2002.
- Knowledgeable and helpful sales staff. These employees are commission-based employees of the builder who are there to help you find the right home. If you have a real estate licensee or Realtor you are working with, definitely bring them along. The builder pays their fee and your agent is NOT working for the builder, like the on-site sales staff.
- Rules. Read them BEFORE you buy. Part of buying into the HOA package is the rules to live by to maintain a certain look and have guidelines for what is permissible and what isn’t.
CONS of HOAs
- Noise from ongoing construction. If the community is new and the “build-out” is estimated at 3 to 4 years, there will be construction traffic and vehicles in and out of the community until then, or longer depending on market conditions. Granted most builders do the construction in stages and often have separate entrances, but if you are buying new, keep in mind that you might be hearing construction noise for years to come.
- Turnover. This is the process when the community “turns over” from the developer to the homeowners as part of Florida Statutes Chapter 720 pertaining to Homeowners’ Associations. It’s cumbersome, time consuming and the first elected board is generally tasked with this process along with help from the HOA attorney general skilled in HOA law.
- Unfunded reserves. Without going into too much detail, the builder/developers do not generally begin funding reserves for replacement costs because once started they must continue and be funded each year. You won’t be surprised to find that they can opt out, meaning not fund any reserves and pass this along to the homeowners when turnover happens. So that means that if the community pool is 5 years old by the time the community is “turned over” and reserve funding for replacement costs starts then, the residents will be starting at year 5 to cover replacement that usually needs to happen in years 10 to 12 (life span of a pool surface). Same for the clubhouse roof so be prepared for funding of reserves.
- Increasing costs. Builder/developers are often funding community operations in their general fund by initial capital contributions made by new owners at the time of purchase. These fees often total one year worth of HOA fees and that money goes into the general fund of the community for operating costs, not reserves.
- Whiners, complainers & rule violators. And it’s not just anecdotal—according to a 2023 DoorLoop survey, 15% of residents have received rule violations. It’s often this vocal minority that dominates board meetings, Facebook groups, and community gossip. As is the case with most things in life, the complainers make more noise than those who are happy so it can make life intolerable for neighbors and community members.
- Limits on landscaping choices and exterior look. Many HOAs want to keep the community aesthetic in keeping with a general overall look and therefore limit exterior paint colors and also landscape plant selections. They go so far as to specify what type and color of mulch you can use and whether or not you can put up a fence, where you keep your trash cans, and how many vehicles can be parked outside. This goes back to the rules and regulations so read them.
- Houses generally close together. Most of the HOA communities in my market area are organized as PUDs or Planned Unit Developments where there are shared amenities and common areas that allow for smaller lot sizes. When the lot sizes are smaller, the houses are close together, often only 6 feet from the property line leaving only 12 feet between houses.
- HOA oversight via ARC or ARB. While the builders can be generally lax during construction – meaning they don’t like to hassle the new homeowners rule violations (unless another homeowner complains) while they are still building), most community documents establish an Architectural Review Committee or Board. These groups are charged with approving any proposed changes to the property. Initially, the builder/developer controls the committee For instance, say you wanted to add a screen door to the front of your house, you submit a form and this request is either approved or disapproved according to the rules.
- Light fixtures and window treatments are generally not provided. Unless you purchase from the builder during options selection, most builders provide only required lighting in the kitchens and bathrooms and no place else. Same goes for blinds to cover windows. Plan on having additional money to buy light fixtures, ceiling fans and window treatments/coverings.
- Builder salespeople work for the builder, not for you.. The smiling-ear-to-ear staff in the sales office are commission-based sales people who work for the builder. Their job is to sell you a house, not make sure you’re getting the best one for your budget and lifestyle.
- Rules. This is both a pro and a con. Sadly, some people buy into HOA communities only to find they don’t like the Board, they don’t like the rules or both. Read the rules and declaration of covenants and restrictions BEFORE you buy to save yourself a lot of heartache and aggravation.
Florida is second only to California in number of HOA communities—with nearly 50,000 statewide. The rules governing homeowners’ associations are outlined in Florida Statutes Chapter 720, which specify how HOAs must operate and offer certain protections. But living in a community with rules and restrictions isn’t for everyone, so I urge you to make an informed decision.
I previously lived in an HOA and even served on the board, including one year as President. I now live on a quarter-acre lot outside of any community. After trying both, my personal preference is no HOA—but I have plenty of clients who live in HOAs and love them.
If you’re looking for the right place for you and your family—whether it’s in an HOA or not—and you want unbiased guidance from someone who acts in your best interest as a fiduciary, I’m happy to help.
Robin Vaccai is a Certified Financial Planner™ professional and the broker-owner of Beach Bay Real Estate, as well as the founder of Suncoast South Living & Real Estate. She serves as a true fiduciary, always putting her clients’ best interests first—unlike the default transaction brokers common in Florida. Based in Venice, she helps buyers and sellers throughout Nokomis, Englewood, North Port, and Wellen Park.