Many townhomes, condos and planned communities charge a regular association fee, and some add one-time special assessments for big repairs. These are separate from your mortgage and taxes. Ask for the budget, the reserve study and any planned assessments before you write an offer.
What are they?
An HOA or condo fee is a recurring payment, usually monthly or quarterly, that covers shared costs such as landscaping, insurance on common areas, trash, snow removal and contributions to a reserve fund. A special assessment is a one-time charge the association levies when reserves fall short of a major repair, like a roof or paving project.
How do you find them?
They appear in the listing details, the association's resale package and the seller disclosure. Ask your agent and title company for the budget, recent meeting minutes and the reserve study early, and read our guide to the condo resale package.
Your options
Fees are set by the association's board, so they are rarely negotiable, but a seller may agree to a credit toward a pending assessment. Compare communities by what the fee includes, not only the amount. Compare with ordinary property taxes.
Budgeting
Add the fee to your monthly cost, and ask how it has changed over the past few years and whether any increase or assessment is planned.
Frequently asked questions
Does it affect financing?
It can. Lenders count association fees in your monthly obligations. Ask your lender before you commit.
Can fees or assessments be negotiated?
Sometimes. Ask for a seller credit toward a pending assessment at the offer stage.
Sources
- Your local assessor, recorder or municipal office (confirm current rules)
- A licensed attorney, tax professional or lender for your situation
- The local MLS and your Northfield Realty agent for current market conditions
Talk with a Northfield agent
Whether you are buying, selling or just exploring, we are happy to answer questions. No pressure, just good advice.
This article is general information, not legal, tax or financial advice. Programs, rates and regulations change; please confirm details with a licensed professional. Northfield Realty is committed to the Fair Housing Act and equal opportunity in housing. Back to all articles.