Home Buying in Pittsboro>Question Details

Linda, Home Buyer in 27312

what are Homeowner Assessment Fees for?

Asked by Linda, 27312 Fri Jul 12, 2013

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Assessments are for determining how much tax you pay. Assessments are done yearly in some states, and after many years in other states. They are an attempt to value similar homes similarly so they pay about the same amount in taxes to the state or county or town. They do not show the market value, but they can come close sometimes. Those that are reassessed every few years, and here in NC they are redone between years 4-8, are going to be obviously higher or lower than the current market value of a property, so the assessment is not really considered in market value of a property.
0 votes Thank Flag Link Fri Jul 12, 2013
HOA fees can cover a variety of areas depending on the HOA. Items can include things such as snow removal, outside maintenance, insurance, trash removal, etc.
0 votes Thank Flag Link Fri Jul 12, 2013
HOA fees are usually referred to as special assessments for a particular project. If there are not sufficient funds on hand from the regularly assessed HOA dues to meet some necessary repair or improvement to the community, a notice of the special assessment would specify the reason for the assessment which is in addition to the regularly assessed dues. In buying into a community with a HOA, it is always a good idea to explore the financials of the association.
0 votes Thank Flag Link Fri Jul 12, 2013
Home Owner Association (HOA) fees will vary depending on the development. Townhouse and condominium communities typically (but not always) cover exterior maintenance of the buildings, parking lots, landscaping, exterior lighting, amenities such as pools, clubhouses, playgrounds, etc. and insurance for the buildings (but not your contents). HOA's for single family home communities typically only cover common areas with homeowners responsible for their own exterior maintenance, landscaping and insurance. It is a good idea to review the neighborhood documents that define what is covered and a current budget including reserves (money in the bank to pay for big ticket items) to find out the financial health of the HOA before you buy. Associations without adequate reserves may need to collect assessments from each owner to pay for big ticket items like roofs, paving parking lots, painting and repairing exteriors, etc.
0 votes Thank Flag Link Fri Jul 12, 2013
If you are talking about Proposed Special Assessments by the HOA, these are additional funds collected for special projects...usually road repairs, repairs or updates to pools and play grounds, or in the case of town homes things like replacing old siding, roofs, etc when there is not enough money in the reserve funds.

sellers are responsible for current and comfirmed special assessments; buyers for any proposed that are approved after closing.
0 votes Thank Flag Link Fri Jul 12, 2013
You haven't indicated what development you're asking about so I can't answer your question. Let me know what the development is and I'll be happy to let you know what the fees cover.
0 votes Thank Flag Link Fri Jul 12, 2013
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