Property Q&A in Capitola>Question Details

Gina Nicosia…, Both Buyer and Seller in San Jose, CA

HOA fees?

Asked by Gina Nicosia Ramsey, San Jose, CA Sat Mar 6, 2010

what are the HOA fees

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This question is about this property: http://www.trulia.com/property/mortgage/2688281-1925-46th-Av…

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In addition to the info you've already received, please be aware that there is a service provided by Community Association DataSource, Jacquie Berry, in San Jose whereby she reviews all of the data provided by the association and gives you a written report on the associations financial strength or weakness. My buyer client paid her fee, got the report and was able to renegotiate the price paid to reduce it by 50% of the projected shortfall... in his case, it was over $10k saved! Not too many Santa Cruz agents are aware of her service, but it's well worth it to protect yourself!
0 votes Thank Flag Link Mon Mar 8, 2010
Hi Gina,
This is Sandy Wallace with Keller Williams Realty in Santa Cruz, CA. I do agree with all the answer you have received so far. These days it is especially important to have a good realtor and lender to go over all the details of buying any home or condo. Before you consider making a offer you can find out if the complex is approved for a loan. That would include not having any law suits pending, having a strong reserve fund for repairs to the complex, and the HOA is run properly. Make sure your Realtor and Lender are working together to verify this information with you. Remember it is always your responsibility to do your own due diligence and your Realtor and Lender can help you.

The name of this complex is Capitola Villas it has 2 pools, a laundry area, and is close to the Capitola Mall and the Capitola Village. Yes there are a lot of short sale and foreclosures in this complex and if you are prepared to buy you can negotiate the sale price, a credit for closing costs, and possibly repairs, this could be a very good purchase for you. If you have not selected a Realtor to help you I would like to offer to meet with you ASAP, you may qualify for the tax credit!
0 votes Thank Flag Link Sat Mar 6, 2010
Gina, the association fees listed on the MLS for this property are $290. This one is a short sale, one of quite a few in this complex, and shows as pending. They are willing to consider back up offers, however.

You should look closely at more than the current HOA fees for any condo you are considering. Many are going into default due to delinquent owners not paying their fees, and most complexes in this area are underfunded for reserves as well. That can mean difficulty obtaining financing, and special assessments for repairs down the road.
0 votes Thank Flag Link Sat Mar 6, 2010
HOA are Home Owner Association Fees. This is the money an owner pays to the Association formed by the members/owners in a townhouse, condo or private urban developement. An Association is formed to govern the common interest of the homeowners, for instance, paying for landscape maintenance, keeping the lighting on, maintaining liability insurance in case your guest trips in the parking lot. The Association has strict rules and laws by which is must abide and usually pays a management company for oversight, guidance and day to day management. If your roof leaks, you call the management company hired by the association to handle these day to day tasks. Homeowners Associations must have certain reserve dollars to be solvent, and must report minutes of the associations meetings to the residents. The dues in Santa Cruz range from around $100.00 monthly on the very low end (rare) and over $1000 in cases with very few units and high maintenance costs. The average however currently is between $375.00 and $495.00 a month, depending on whether the property has a community pool, tennis court, etc that demands addtional maintenance. I hope that helps! Feel free to contact me with any other questions.
Terry Ballantyne
831 588 8485
Broker Associate
Sereno Real Estate Group
2470 Porter Street
Soquel Ca. 95073
0 votes Thank Flag Link Sat Mar 6, 2010
HOA Fees = Home Owner Association Fees. Almost all condo units and some houses will have HOA fees associated with them. These fees go to pay for insurance, landscape maintenance, common area lighting, exterior maintenance of the condo (roof, siding, paint), maintenance of the roads, etc. They often include water and garbage service as well.
0 votes Thank Flag Link Sat Mar 6, 2010
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