Understanding HOA When Buying a Luxury Home in Summerlin

What Does an HOA Include with a Luxury Summerlin Home

What Does an HOA Include with a Luxury Summerlin Home?

Living in one of the many luxury communities in Summerlin, Las Vegas, Nevada means paying HOA fees, but what does the HOA include with a luxury home? If you want to know what to expect as far as HOA fees go when buying a luxury home in a sought-after Summerlin community, then this guide is for you.

Key Takeaways:

  • What is an HOA?
  • Why are HOAs Important?
  • Summerlin Luxury HOA Fees 
  • HOA Fee Questions You Need to Ask

What is an HOA?

The Homeowners Association is an organized group of neighbors who create rules and manage common areas and amenities. If you buy a luxury property in one of the many gated Summerlin subdivisions, you automatically become a member of the HOA. Since you will be living with other owners and sharing common amenities, you need to have some rules in terms of its usage and maintenance. This might look like laying down policies and guidelines. The HOA board creates a document known as the Declaration of Covenants, Conditions, and Restrictions which helps identify conditions on the properties. HOAs have significantly more authority over the property. This is because it weighs several boards of directors, all of whom are resident-owners.

Why are HOAs Important?

The HOA is important because it manages the assets of the property and many other amenities the community shares. Living in a Summerlin luxury community where you share amenities with others can be challenging. The primary reason for creating the HOA is to ensure that everything in the community is organized and running smoothly. The HOA is governed by a board of directors elected by homeowners. One of the most important jobs of the HOA is to ensure that the rules are followed, both by the HOA and the board itself.

Here are the following things HOA does:

  • Create and approve rules, conditions, and bylaws
  • Review complaints and make decisions regarding the resident's concerns
  • Form various committees and give them tasks and assignment
  • Establish a clear line of communication with the residents
  • Keep financial records and maintain funds reserved
  • Budget for repairs and upkeep
  • Arrange for inspectors
  • Respond to resident's emergencies

What Does an HOA Include with a Luxury Summerlin Home

Summerlin Luxury HOA Fees

When looking into buying a luxury home in one of the many luxury communities of Summerlin, it is important to know that you will be charged a full year's worth of association fees. Annual homeowner fees are used for financing the operation and maintenance of the association, to landscape and maintain the common areas, to preserve, enhance, and protect the assets of the community, and to finance the programming and management of the amenities for the benefit of the homeowners. Fees can range anywhere between $150-$200 a month in the luxury home communities.

Communities maintain separate Asset Reserve Funds derived from annual homeowner fees, and the New Owner Reserve Assessment (NORA). The funds provide money for replacing and refurbishing the capital assets owned by the Association. Some recreational activities that might require replacements include the following:

  • Aerobics Rooms
  • Billiards Room
  • Bocce Courts
  • Horseshoe Pits
  • Miniature Golf
  • Pickleball Courts
  • Picnic Areas
  • Ping Pong Table
  • Racquetball Court
  • Shuffleboard Courts
  • Softball Diamond
  • Spas
  • Swimming Pools (Indoor/Outdoor)
  • Table Tennis
  • Tennis Courts–Lighted
  • Walking Tracks

Real Estate Authority, Bill Gassett of Maximum Real Estate Exposure, gave us some helpful pointers about homeowner's associations and how to change rules.

"From owning a few condos and selling them for the last three decades, I have learned many things the average buyer is not aware of. One of the upsides or downsides, depending on how you look at it, is the rules. Some love the fact there are regulations in place, while others despise being controlled.

One of the questions that comes up frequently is if rules can be changed. The answer is yes. However, it is essential to note that in order for something to be changed the condo docs must be followed. Typically, in a scenario where a rule change is requested the majority of the owners have to agree on it.

There would be an official vote that would determine whether the rule change would be implemented or not."

HOA Fee Questions You Need to Ask

Buying a luxury home in Summerlin is already expensive, adding an HOA on top of that means you will be spending a significantly larger amount of money. You want to make sure that all your bases are covered and that there will be no surprises for you in the end. For this to happen, you have to ask the right questions.

Here are some HOA fee-related questions you should ask both your agent and the property's HOA:

  1. How much are the HOA fees?
  2. When are the payments due?
  3. Are you expecting an HOA fee increase in the coming years, and how does it normally increase?
  4. Does the HOA fee include insurance?
  5. How much of the HOA fee goes into the Reserve Fund? 
  6. Is there an ongoing special assessment fee? Are you expecting a special assessment fee this year or next year?
  7. What about HOA fines if items are not addressed?

Bottom Line

Buying a luxury home in one of the many flourishing communities of Summerlin involves financial matters. Protect your investments by doing research and asking questions to learn more about luxury home properties. You might not get all of the answers you need right away, but asking questions opens up conversations that will better understand how the HOA of the building works. Let professionals at The Las Vegas Luxury Home Pro guide you in finding your new dream home in the many luxury communities of Summerlin today!

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