Why do HOA fees differ?

Reblogger Christie Lane Craven
Real Estate Agent with Long & Foster License# 641163

There are many reasons why HOA and condo fees differ from neighborhood to neighborhood and Joan touches on some good ones here. It is also important to note that those fees vary within the neighborhood as well as they are often based on the square footage of the unit.  The bigger the unit or house, the bigger the fees!  Be sure to check and see what your HOA fees DON'T cover.  Things such as pool membership, community center rentals, and golf course fees are often cost extra.

Original content by Joan Cox DRE# ER40011786

Why do HOA fees differ?

Townhomes

Why do HOA fees differ so much between complexes?    Multi-family buildings include a few items in their monthly fee such as water/sewer, trash, snow removal, grounds maintenance of common areas, exterior building maintenance with roof and insurance of the exterior building.    Some don't pay for water/sewer and some do not pay for exterior building with roof.    Some complexes have amenities lika pool and clubhouse with fitness center. 


Each complex has a Board of Directors that reviews the budget.   This is when they review contracts with vendors who do the snow removal and also the maintenance of the grass/sprinkler systems.      When there have been many storms that produced hail or tornadoes and roofs had to be replaced/repaired, these fees are factored into the monthly fee.    To keep a complex in good condition, the buildings must be painted every few years, parking lots need to be repaired which will be factored into this fee.

Condo buldings

As buildings age, the fees increase to maintain older buildings.    As elevators age, these are expensive to repair/replace, as well as a boiler and the duct work or plumbing the building may be responsible for.  


If you are contemplating purchasing in a multi-family complex, review the budget.     There are many documents you have the right to review to include the budget.   I would encourage new buyers to get involved in their HOA, go to the meetings and know what rules are being reviewed, and what issues are being discussed.

High-Rose Buildings


When you have major repairs needed that are not in the annual budget (such as roof replacements) you will see special assessments included in the monthly fee.     These are generally only assessed for a one year period.

Low rise condo buildings


You will see HOA fees ranging from $150-$600 (approximately) for multi-family complexes, and newer housing developments have HOA fees that include only grounds maintenance for common areas and trash removal for single detached family homes.


When looking for a multi-family unit, you have choices between townhomes, low-rise condos and high-rise condos.

If you need more information by complex, please give me a call.

 

 

 

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Metro Brokers - House to Home, Inc.House to Home

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Joan@JoanCox.com

                                                 720-231-6373 (cell)

Denver Real Estate

 
  A Denver Metropolitan Realtor

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Rainmaker
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Jean Hanley
Coldwell Banker Kivett Teeters - Hemet, CA
Specializing in Folks Who Want To Buy/Sell Homes

Wow Christie, so glad you reposted this.  This is a GREAT layout of HOAs, and I think I will also find the original blog and let Joan know how well laid out it is.

Mar 07, 2013 04:20 AM #1
Rainmaker
2,983,745
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Christie, thanks for the re-blog!     So many families are down-sizing and entertaining the idea of a condo or townhome, these are common questions.

Mar 10, 2013 07:34 AM #2
Rainer
44,806
Jenn Morson
Metro Referrals - Crofton, MD
Licensed Referral Agent and ASP - Team Woda

Great information, Christie! I know I certainly have always wondered about this - without these talking points, one might stumble when showing a condo to a client. Thank you for re-posting!

May 02, 2013 07:36 AM #3
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Rainmaker
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Christie Lane Craven

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