WHAT SHOULD I KNOW ABOUT HOA & CONDO FEES?

WHAT SHOULD I KNOW ABOUT HOA & CONDO FEES?

You found the house.

You love the neighborhood.

The price looks good.

Then you discover:

There’s an HOA.

Or you’re looking at a condo and there’s a monthly association fee.

Don’t panic.

But don’t ignore it either.

What Is an HOA?

A homeowners association, or HOA, is an organization that establishes and enforces rules for a community and collects assessments from homeowners to fund community operations and maintenance.

Depending on the community, those fees may help pay for things such as:

  • Landscaping
  • Common areas
  • Pools
  • Clubhouses
  • Roads
  • Exterior maintenance
  • Security features
  • Community amenities

What is included varies dramatically from one association to another.

Condo Fees Can Be Different

Condominium associations may have regular assessments that help cover maintenance and operation of common elements of the building or community.

Depending on the property, those fees might include things such as:

  • Building maintenance
  • Exterior maintenance
  • Common areas
  • Water or other utilities
  • Insurance for common elements
  • Elevators
  • Amenities
  • Reserves for future repairs

Never assume what’s included. Ask.

Here’s What I Want You to Look At

Before buying into an HOA or condo association, I want you to understand:

How much are the regular fees?

What do they cover?

Are there special assessments?

Are there pending or anticipated increases?

What are the rules?

Are there restrictions on rentals?

Are there restrictions on pets?

Are there restrictions on parking?

Are there rules about exterior changes?

How healthy are the association’s reserves?

These things can matter a lot.

The Monthly Fee Isn’t the Whole Story

A $300 monthly HOA fee isn’t automatically good or bad.

You need to know what you’re getting for that $300.

Maybe it covers a significant amount of maintenance.

Maybe it covers very little.

Maybe the association has major expenses coming.

The number by itself doesn’t tell you enough.

And Then There’s the Question of Special Assessments

This is something buyers need to take seriously.

An association may levy a special assessment to pay for an unexpected or major expense.

That could mean an additional financial obligation for the homeowner.

So don’t just ask:

“What’s the monthly HOA fee?”

Ask:

“Is there anything else I need to know?”

My Advice?

Don’t automatically eliminate a home because it has an HOA.

And don’t automatically buy one because the neighborhood looks beautiful.

Understand what you’re agreeing to.

Read the documents.

Ask questions.

Understand the financial obligations.

And make sure the community’s rules fit the way you actually want to live.

Have a Question?

Buying a home comes with a lot of questions. You don’t have to figure everything out on your own.

Have a question about something you read here? Want to talk through your situation? Or just not sure what your next step should be?

I’m happy to help.

Schedule a Time to Talk With Karyn

No pressure. No obligation. Just straight answers.

Prefer to just send me a question?