Homeowners Association (HOA)
An organization in a subdivision, planned community, or condominium that makes and enforces rules for its members and manages common areas. HOA fees and restrictions can significantly impact property values.
In appraisal, HOA analysis includes the monthly or annual fee amount, what services the fee covers (landscaping, insurance, utilities, amenities, reserves), the financial health of the HOA (reserve fund adequacy, special assessments, budget), and any pending litigation. For condominiums (Form 1073), the HOA analysis is particularly detailed. High HOA fees can negatively impact value by increasing the effective housing cost, while well-managed HOAs with strong reserves and desirable amenities can enhance values. The appraiser must report any known special assessments or pending litigation.
Related Terms
Form 1073 (Condominium Appraisal)
1073The standard appraisal form for individual condominium units, including analysis of the unit, the condominium project, and common elements.
Adjustment
A dollar or percentage modification applied to a comparable sale's price to account for differences between the comparable and the subject property.
Market Value
The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus..
More in Property Characteristics
View allGross Living Area (GLA)
GLAThe total finished, above-grade living area of a residential property, measured in square feet.
Gross Building Area (GBA)
GBAThe total area of a building measured from the exterior walls, including all finished and unfinished, above-grade and below-grade spaces.
Below-Grade Area
Any portion of a building that is below the ground level on any side.
ANSI Z765 Measurement Standards
ANSIThe American National Standards Institute standard for measuring residential floor area.