HOA fee

[Fernando]

I have two condo complexes similar in exterior appeal but managed by 2 different.
One has higher HOA (almost 40% higher) and other has some deferred maintenance but lower HOA fee. The lower HOA fee also reflect the property management having a "larger economies of scale" in getting better insurance.
That's one explanation by homeowner.
I was thinking not to do any adjustments since the HOA fees reflect the condition of the complex. Am I correct?

 

[Bobby Bucks]

I have two condo complexes similar in exterior appeal but managed by 2 different.
One has higher HOA (almost 40% higher) and other has some deferred maintenance but lower HOA fee. The lower HOA fee also reflect the property management having a "larger economies of scale" in getting better insurance.
That's one explanation by homeowner.
I was thinking not to do any adjustments since the HOA fees reflect the condition of the complex. Am I correct?

I’ve never made an adjustment for a difference in HOA fees. IMNSHO that is determined by the market and reflected in the sales price. I should state I am no guru, nor do I have a designation, however; I am a notary public candidate in good standing.

 

[Sid Holderly]

The HOA fees may have little realtionship to ocndition or quality.

 

[KONA]

A lot of factors go into the HOA charges: Number of units, grounds, quality of the structures, insurance, common area amenities; management (self or professionally managed), age of the project, legal issues. Also consider if the reserve account is sufficient to replace all major components. The overall layout of the project with private streets, common area utilities; and the list goes on and on.

 

[J Grant]

Is there a price difference as a reaction to the HOA fee differences ? Unless I see it impact price, I am not going to adjust for it.

HOA fees are a tradeoff - higher fees usually means better maintenance, financials, amenities, and lower fees more bare bones maint /fewer amenities. More imporfant to the appraisal is, would either buyer really consider the other community...

 

[glenn walker]

Please Just stop doing condominiums after 20 years you still seem to have nothing but problems with them. My advice is when you see a condo order -send them a thank you but you are busy doing what Fernando knows best and its not condominiums but high end properties or ones where you need a comp from 2 or 3 years ago because there are no others : )

 

[Fernando]

I do take long time with condos and I usually avoid them.
This one I took because it's near my rental.
To my surprise this complex which I never noticed had almost twice as high HOA fee as mine.
It looks the same appeal and when I asked the owner who happened to be HOA President she said her complex had new better roofs on all the units.
Does that justify the significant increase?
Because she admitted they have different management company, my condo complex's management had a better general insurance policy which lowered the HOA. WTF.
Have you heard of that?
Anyway, it's difficult to adjust for HOA fees.