Understanding HOAs in Champaign-Urbana: What Sellers and Buyers Need to Know
By Max Mitchell, REALTOR® | RE/MAX Realty Associates | Inspired by REALTOR® Magazine article by Melissa Dittmann Tracey
In today’s real estate market, homeowners associations (HOAs) have become an increasingly significant factor in many transactions—and the Champaign-Urbana area is no exception. Whether you're buying your first home, selling a longtime residence, or simply exploring your options, it’s important to understand how HOAs impact property ownership and the transaction process.
Melissa Dittmann Tracey’s comprehensive piece in REALTOR® Magazine (“Navigating HOA Rules,” November 2024) sheds valuable light on this topic. Drawing from her insights and my local experience, I want to highlight what home buyers and sellers in our area need to know when dealing with HOA-governed properties.
📍 HOAs in the Champaign-Urbana Market
In Central Illinois, particularly newer subdivisions in Champaign, Urbana, Savoy, and Mahomet, HOAs are commonly established to manage neighborhood upkeep, amenities, and aesthetic standards. These associations often take care of snow removal, common area landscaping, walking trails, ponds, and even playgrounds or small community parks.
Living in an HOA can certainly offer benefits—like well-maintained neighborhoods and consistent property values. In fact, according to the Cato Institute, homes in HOA communities often sell for 5% to 6% more than similar homes without an HOA.
But HOAs aren’t for everyone.
🧾 The Pros—and Cons—of HOA Living
As highlighted in the REALTOR® Magazine article, HOAs can:
✅ Maintain common areas and protect curb appeal
✅ Offer amenities like pools, fitness centers, and trails
✅ Enforce consistent architectural standards
✅ Foster community through events and volunteer boards
However, buyers must weigh these benefits against some potential drawbacks:
🚫 Restrictions on home modifications or rentals
🚫 Monthly or annual fees (averaging $291/month nationally)
🚫 Rules on pet ownership, vehicle types, or even paint colors
🚫 The possibility of fines, liens, or legal action for violations
Here in the Champaign-Urbana area, HOA fees typically range from $150 to $600 annually, but some newer communities or condos may exceed that depending on the services offered.
🧩 What Sellers Should Know
If you're selling a home in an HOA, make sure you're:
Current on your dues – Unpaid fees can delay closing.
Familiar with HOA rules – A compliance inspection may be required before selling.
Transparent in your MLS listing – Share key details like fees, amenities, and HOA contact information.
I always advise sellers in our market to request up-to-date documents directly from the HOA—not from a file drawer in the garage. The rules may have changed, and accurate documentation is essential.
🔍 What Buyers Should Ask
Buyers looking in HOA communities should always request:
CC&Rs (Covenants, Conditions & Restrictions)
Bylaws and Articles of Incorporation
HOA financial statements and reserve studies
Rules and regulations, including rental or pet policies
A breakdown of all current and potential fees
One key tip I share with clients: Make sure the HOA rules align with your lifestyle. Want to install a fence, rent out the basement, or adopt a large dog? Let’s make sure the HOA allows it before you fall in love with the home.
⚖️ A Word of Caution
As REALTORS®, we walk a fine line between being helpful and interpreting legal documents. As Tracey rightly points out, we should never act as legal advisors. If you or your buyer have questions about what an HOA rule really means or whether it’s enforceable, I’ll help guide you to an experienced real estate attorney for clarification.
And yes, some HOA rules might overstep their bounds. Federal laws—such as fair housing protections—supersede HOA rules, and selective enforcement can lead to legal trouble for the HOA. If something seems questionable, it probably deserves a second look.
🏡 My Role as Your Local Resource
As someone who has worked in the Champaign-Urbana real estate market for decades, I’ve seen just about every kind of HOA—some well-run and others, let’s just say, challenging. My role is to help you navigate these nuances with eyes wide open.
Whether you’re considering a move to a newer HOA-governed development in Savoy or listing a home in an established neighborhood near Robeson Meadows or Lincolnshire Fields, I’ll make sure you're informed, prepared, and confident every step of the way.
If you’d like to explore HOA communities in our area—or if you’re unsure whether an HOA is the right fit for your lifestyle—let’s have a conversation. You can reach me anytime at MaxMitchell@REMAX.net or 217-369-0376.
Max Mitchell
REALTOR® | RE/MAX Realty Associates
🏠 Serving Champaign-Urbana and Beyond
📲 GuaranteedSoldByMax.com
Adapted and inspired by the REALTOR® Magazine article by Melissa Dittmann Tracey, “Navigating HOA Rules,” November 14, 2024.