Home Buying in Sun City>Question Details

mona, Home Buyer in Green Valley, AZ

Exactly what do I get for the two one-time fees $3,000 Capital Preservation fee and $300 Resale Transfer Fee.

Asked by mona, Green Valley, AZ Wed Jan 9, 2013

When you add these extra closing costs; price/sqft becomes unreasonable high when compared to non Sun City property.

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7
Diane M Clark’s answer
Hi,
The one time $3,000 is a preservation fee for the many recreaction centers that are available to all owners in Sun City, AZ 55 and older community. If you go to http://www.sunaz.com you can check out everything that is available to owners. The capital preservation fee keeps the many facilities in outstanding shape. If you move from one home to another within the community you will not have to pay the fee again. The $300 is a transfer fee similar to may HOA transfer fees. The homes in Sun City are very affordable and the annuall fees of $444 include two recreation cards and access to the facilities. It is like belonging to a country club but it includes many more facilities for a very reasonable fee. The condos at El Dorado include many services above and beyond for additional fees. The basic condos and many homes are very affordable and you get to use all the recreation facilities in the 55 and over community. It is really an awesome place to live and the prices are really quite affordable for all of the benefits you receive. Let me know if you would like to check out some of the homes.
Diane
0 votes Thank Flag Link Thu Jan 10, 2013
It looks like you are considering purchasing at El Dorado. This is a unique and upscale property that includes monthly fees (in addition to the Capital Preservation fee) for food and services. Are you aware of these fees and what is included in them? If you are not looking for this type of property a 2 bed/2 bath condo in Sun City would be much less than the price you will pay at El Dorado. As for what you get for the fees you inquired about. You get a multitude of recreation centers, golf courses, clubs, fitness centers, pools etc. Please look at http://www.sunaz.com to see everything included. It is like living at a big resort or country club. Of course if you are not interested in those perks Sun City may not be for you. Make sure you compare the Real Estate taxes though if you move outside Sun City because they will be higher to support our local schools. If you would like more information about the Sun City area please feel free to contact me at 602-614-6661 and I would be happy to help you find a great new place to live. Kind regards, Diane
0 votes Thank Flag Link Thu Jan 2, 2014
I think the annual fee of $450.00 is way too much, and it goes up every year, lots of people live in Sun City on their Social Security, and this people give themselves a raise every single year, it's a rip off.
Cesar.
0 votes Thank Flag Link Thu Jan 2, 2014
Sun City, an age-restricted community developed and built by the Del Webb Company, has historically, through the Recreation Centers of Sun City, Inc., imposed a one time "Resale Transfer Fee" and a "Capital Preservation Fee" on the ownership transfer of deeded residential property. The adminitrative/corporate office should be contacted directly (623-561-4600 from 7:30 am to 4:00 pm MST Monday - Friday) to learn more about these one-time fees and the actual use of such funds.

My understanding is that the Capital Preservation Fee, which has been increased over the years on a regular basis, is primarily intended to establish reserve funds for refurbishing, updating or replacing major capial assets of the community such as the Recreation Centers. For example, the Fairway Recreation Center, one of seven in the community, was totally rebuilt (in two phases) as a new state of the art facility within the past several years. It is likely that much of the cost of this new facility was funded through reserve funds accumulated from the Capital Preservation Fees received.
0 votes Thank Flag Link Wed Jan 9, 2013
Thank you. I will call them because now I'm curious exactly what the deal is. I'm sure many people just pay the fee and never ask. I'm also sure the fees vary by community and are worth including in cost comparisons before buying. Shame on realators who don't disclose to buyers as happened to me.
Flag Wed Jan 9, 2013
Dear M:

Usually nothing. HOA groups typically, push capital improvements on to the new buyers than to the existing owners. Projects are funded this way to be less painful to the new groups coming in. This is common in other areas also, not just Sun City.

Similar to the way the government raises dollars by taxing tourists through hotel and car rental taxes so the voting population does not get hit with higher taxes.
0 votes Thank Flag Link Wed Jan 9, 2013
I really disagree with this accessment of Sun City. I would recommend that you visit the area and check out the country club like facilities that you have at your disposal along with about 500 various club activities. The website is http://www.sunaz.com if you are not familiar with all that Sun City has to offer.
Best regards,
Diane
Flag Thu Jan 10, 2013
The first honest answer I have gotten and exactly what I thought. I'm done looking in Sun City. Taxes I can vote on are one thing; but something for nothing doesn't work for me. Thank you for your honesty, you are a rare commodity in the real estate world!
Flag Wed Jan 9, 2013
To be more specific on these charges that you are questioning, please let me explain. The resale transfer fee is an amount that is charged when a homes transfer ownership from one owner to another. The amount of this fee is fairly common. I have seen the resale transfer and disclosure fees range from $150 and up in different parts of the Phoenix Metro area. The $3000 capital preservation fee is a charge that occurs on all homes in Sun City. Are you familiar with Sun City? This community offers many amenities that come with ownership. There are seven recreation centers in Sun City including restaurants, fitness centers, indoor and outdoor swimming pools, indoor walking track, racquetball courts, woodworking shop and hobby and card rooms. Also Sun City has 30 churches, a synagogue, social hall, grand ballroom, performing arts theater, two libraries and a hospital. The grounds of Sun City Arizona all maintained with the capital preservation fees as well and the community caters to physically active adults. Residents enjoy walking on miles of trails, pickleball, tennis, horseshoe, lawn bowling, bocce ball courts, softball field, and fishing lakes.

As you can see, Sun City will keep you busy with activity!

Here is a link with more details about this home: http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+other/ru…
0 votes Thank Flag Link Wed Jan 9, 2013
yes, I'm familiar with Sun City. It wasn't until I was ready to make an offer that my now Ex-Realtor even mentioned these additional fees and then could not answer my questions about them. The restaurants, churches, hospital etc. you mention fund themselves through profits and/or offerings and donations. Or are you telling me money from this closing cost goes to them? Are there other 55+ communities near by that don't have these fees. I'd be very interested in seeing them. On a $130K purchase price this amounts to a 2.54% fee, ridiculous.
.
Flag Wed Jan 9, 2013
Instead of looking at this listing you should look at the property at 17012 N 96th Drive Sun City, AZ...which is approxiamtely 2200 square feet, a single family property not a condo of 950 square feet as the one you were looking at. It is on a 13000-14000 square foot lot and has been totally remodeled...with granite counter tops, stainless steel appliances, hard tile and laminate wood floors, stucco exterior, over sized 2 car garage, new roof, verticals...and the list goes on and on. The asking price is $199,999....so why not put the fees that you have to pay to use with a single family property instead of a condo. The transfer fee is standard for many subdivisions and the amount for the fee varies for each subdivision. You also need to pay the annual dues of $420.00 and the CAP fee which is $3000...and that fee is associated with the maintenance of all the grounds and amenities for Sun City...and many subdivisions have that fee as well. The Capital Asset Preservation fee is the way larger subdivisions are able to maintain their properties and not let them be in disrepair. You can contact me at Lynne A Shapiro,PC,BA,CMPS,CREA,CRS,GRI of West USA Realty at 480-419-LYNN or 602-206-SELL or via e-mail at LynneAShapiro@aol.com if you want to see the listing I am referring to above...or with other properties.
0 votes Thank Flag Link Wed Jan 9, 2013
Still no explanaton of exactly what if anything I get for my money. Where/to whom does the money go to? Who manages it and what input do I get on how it is spent? Do I get any back if I sell? Just because other places do the same thing doesn't make it right or cost effective for me. I was socked when I found out about these fees. But thank you for answering.
Flag Wed Jan 9, 2013
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