Question Details

M.c., Home Buyer in Home, WA

do high hoa dues turn buyers off? i'm selling a condo w/ a $200. hoa.

Asked by M.c., Home, WA Wed Apr 2, 2008

this condo is in foothill farms area and in very good condition!!! madison villa estates area.

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Depends on what services the home owners association covers; I.e..grounds keeping, exterior maintenance, roof replacements, ammenities and utilities provided etc. Also keep in mind that on top of that a buyer will be looking at (or should be asking about) how much is in reserves and what structural repairs are forthcoming. Will assessments be added? If so will seller be willing to pay the assessments at closing? Do the buyer a favor; have minutes of meetings for the last 6 months available for potential buyers to read, showing the strength of the HOA. If it's not strong, and if there are assessments pending, structural issues, litigations etc, be sure to disclose these in the listing and price the home to sell, not to sit. Be the house to buyers want to buy. Buyer's will look at the whole picture and if they see a nice value, a well kept home, a seller who provides disclosures for review prior to an offer and has the home well staged you won't have to worry about the HOA fees being an issue. The purchase price will be the issue in most cases. Anyone looking for a condo knows they'll be faced with HOA's. They just don't like surprises! So dispell any potential issues from the beginning with a well prepared listing. And best of sale to you.
Web Reference: http://www.junelizotte.com
0 votes Thank Flag Link Wed Apr 2, 2008
In general, higher than average HOA dues can turn purchasers off. They can also place a condo out of their price range if the HOA dues increase their monthly payment by too much. However, in my experience, most purchasers take into account what they get for the money. Do the dues include any utilities, common areas and recreation such as a pool. These things provide increased value to the consumer so they are more willing to pay for them. Also, HOA fees are relative. An agent in your area can better tell you if $200 is considered a steep amount for HAO or not, but keep in mind that they are only high if they are higher than the average HOA in your area which provides similar benefits.

Best of luck with your sale!
Web Reference: http://www.aprilalsup.com
0 votes Thank Flag Link Wed Apr 2, 2008
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