Ej Adams, Home Buyer in Marlboro, NJ

Can a potential buyer of a Town home/ Condo negotiate what future increases would be to HOA fees at time of purchases?

Asked by Ej Adams, Marlboro, NJ Wed Aug 14, 2013

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12
Mary Petti, Agent, Edison, NJ
Thu Aug 15, 2013
NO...period. Fees are set by the HOA who have noting to do with your purchase. They work on a budget and make increases as deemed necessary. If you buy a condo and are concerned with HOA fee increases, join the HOA board so you have a say in what happens, and understand the why and how of a necessary HOA fee increase or assessment.
2 votes
Ron Thomas, Agent, Fresno, CA
Wed Aug 14, 2013
If you were managing the HOA; would you do this for the residents?
Sure it's good PR; but since when did they care about their PR>

HOA's are notorius; dreconian regulations, excessive fees, indescriminant fines, repressive CCRs.
You can tell I'm not a big fan of HOAs.

You are also assuming that the HOA has a PLAN about their scheduled increases.
1 vote
cj0271, Home Owner, Howell, NJ
Sat May 16, 2015
while a few condo's have made good investments I recommend never buying one. You are at the mercy of the condo association as far as costs and what you can and can not do, plus very poor parking in almost all of them and when prices fall, they drop the furthest and fastest . A single family home may be a bit more expensive, but that cost is usually far less than maintenance, association fees or special assessments that may be used for things you do not want or use, like a pool, a bus, new plantings a trip or to repaint all the units pink.

If you want to paint your door blue you must ask permission or face fines they will levy on you. Have a motorcycle, pick up truck , canoe or boat? lots of condo associations ban them all from being near your unit and some rent parking for $100 a month or more to keep them, usually in unguarded or non fences non secured areas
0 votes
Steven Cohen, Agent, Morganville, NJ
Tue Sep 3, 2013
absolutely not. Those fees are fixed by the association and everybody pays.
0 votes
Marc Paolella, Agent, Succasunna, NJ
Thu Aug 15, 2013
You don't sound like a good candidate for condo life. I would seek out a detached home.
0 votes
Scott Godzyk, Agent, Manchester, NH
Thu Aug 15, 2013
Sorry but the answer is a big NO. The HOA sets a budget and therefore its fees each year. Get active in your HOA and work to control costs and make sure everyone is paying to keep your fees the same or lower. It is when people dont pay or things are not taken care of fees can sky rocket
0 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Thu Aug 15, 2013
It surely would be nice, but the answer is no. Andrew's observation is a good one -you can influence the course of association and the budget though involvement.

I have seen instances where a seller might include a portion of future maintenance to incent a buyer to act. But in this fast-paced market you may not find this type of thing.

Good luck and best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes
Andrew Tisel…, Agent, clifton, NJ
Thu Aug 15, 2013
This is like asking the town or city to negotiate future property taxes.

At least with the condo you can get involved in helping keep the costs down even if it means you cut the grass and pick up the garbage.
0 votes
you are quite correct as are all the others however not a good comparison. many towns will grant tax abatements or discounts to buyers of long vacant properties. I just got 3 years of no taxes on a 3 story brick bank in pretty good shape that's been vacant for 20 years.

I am in contract to buy it contingent on getting grants to do the remodeling/restoration. It works the same for abandoned or long vacant homes in some neighborhoods
Flag Sat May 16, 2015
Diane Glander, Agent, Spring Lake, NJ
Wed Aug 14, 2013
Don't think so. The fees are determined by the Board via it's budget and is voted on by that board which is elected by the residents.
So, once you purchase, you can become involved in the process, but not before then.
Web Reference:  http://www.dianeglander.com
0 votes
Bill Eckler, Agent, Venice, FL
Wed Aug 14, 2013
These fees as well a community guidelines are established and approved by the residents as a whole. Exceptions are not made on an individual basis, regardless........

To ths end, it's always important the buyers understand fees, assessments, guidelines, rules, and regulations well in advance of any agreement.

Good luck,

Bill
0 votes
Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Wed Aug 14, 2013
The short answer is no.

Increases in HOA fees are generally based on increases in the cost of services/good. These include maintenance, repairs, and insurance. If and when those go up, the cost has to be passed along to the unit owners.

On new construction, the developer usually controls the HOA or has a management company in place to take care of things. Once the development is built out and meets a minimum occupancy requirement, then control is turned over to the residents and they will either run things or have a management company do it for them.

So neither the builder nor the seller has control over any future increases and thus are not in a position to negotiate anything. You could, however, negotiate that they pay 6-12 months of the current HOA fees for at the time of closing to sweeten the pot (assuming your lender will allow this)

The other thing I would research is the association bylaws, which usually outline then when and how of the HOA fees and increases. Most likely it's some sort of standard verbiage, but if it's something you're not comfortable with then don't buy it.

Good luck!
0 votes
Ej Adams, Home Buyer, Marlboro, NJ
Wed Aug 14, 2013
Thanks for your input... All HOA's seem to have a plan... Just what that plan is and how it may Benefit the owners is up for interpretation
0 votes
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