HOA Transfer/Reserve Fees???? $2000+???? (foreclosure, house, neighborhood)

[ReadyFreddy]

Originally Posted by pbenjamin

I would be surprised to learn that they are required, I simply think they are preferred by builders. I could be wrong, though.

I heard the cities no longer want to supply and maintain retention basins, do street maintenance, and take on other neighborhood responsibilities. So now they make each community take on those things themselves. HOA is just the logical structure. I could be totally wrong, though. I've never really researched it.

[jimj]

Originally Posted by ReadyFreddy

I heard the cities no longer want to supply and maintain retention basins, do street maintenance, and take on other neighborhood responsibilities. So now they make each community take on those things themselves. HOA is just the logical structure. I could be totally wrong, though. I've never really researched it.

No, you're right. The cities/counties do their level best to lay off as many costs as possible to the subdivisions including basic code enforcement via CC&R's so they can collect tax money just for core services. Personally I think it's equal to being double taxed.

[Captain Bill]

Originally Posted by jimj

No, you're right. The cities/counties do their level best to lay off as many costs as possible to the subdivisions including basic code enforcement via CC&R's so they can collect tax money just for core services. Personally I think it's equal to being double taxed.

In a way you're probably correct. However, I don't think a city can maintain a community at the same cost as a well run HOA can. And they would probably not be providing club houses, pools, tennis courts within each community. They would only have public parks.

So if the city were to be providing the same services as the HOA's, and doing the maintenance, I would guess the cost to us would be more than we're paying now; plus those who like to have a certain amount of uniformity in their community; would not like to have people running auto repair shops in their driveway, etc. would be out of luck.

[ReadyFreddy]

Originally Posted by jimj

No, you're right. The cities/counties do their level best to lay off as many costs as possible to the subdivisions including basic code enforcement via CC&R's so they can collect tax money just for core services. Personally I think it's equal to being double taxed.

I don't feel double taxed because I can opt out of HOA communities. Someday I'll want a newer home and will have to bite the bullet. Maybe I'll love an HOA, who knows. For now, I feel like I'd rather pick my own gym (or not) than have to pay for the community one, etc. Though I guess the costs are often pretty darn low.

[Zippyman]

Originally Posted by ReadyFreddy

I don't feel double taxed because I can opt out of HOA communities. Someday I'll want a newer home and will have to bite the bullet. Maybe I'll love an HOA, who knows. For now, I feel like I'd rather pick my own gym (or not) than have to pay for the community one, etc. Though I guess the costs are often pretty darn low.

The problem is, they're uncontrollable and unpredictable - especially as the community ages. When the neighborhood is 40, and the community pool needs major repairs, you'll have some who want to rip it out, and others who would gladly triple their dues, or have a whopping assessment to keep it around. Sure, you can blame bad planning, but just like our government is doing, making a hard decision to create adequate reserves beforehand over many years, takes a back seat to feeling "good" with low dues right now.

The guy who buys a place in an HOA with a 39-year-old pool is expected to pay for 39 years of deferred maintenance. I know, theoretically, that person *could* dig into the financials of the HOA & see if they have been deferring maintenance, but let's be serious - most homebuyers don't even understand PMI, adjustable interest rates, or CC&R's - so digging into a financial statement & asking "tough" questions isn't going to happen, even if that buyer had any clue of what questions to ask. And you don't know what you don't know!

[Solere]

How does an HOA go about implementing these types of transfer fess? Do they have to change the CC&Rs and get a vote of the majority of the residents, or do they just pass the fee at a Board meeting?

[z711]

I decided to put my house for sale in Johnson's Ranch in San Tan Valley Az. The realtor disclosed that the HOA would charge me over $1100 plus the $400 transfer fee to sell my house. With all commissions; fees; ect. It will cost me over $15000 to sell my house not including if the buyer wants me to pay part or all of closing cost. Not happy! Lesson; don't buy a home unless you plan to die there. The housing market is not good for a seller right now. These fees are to big of a hit.

[Captain Bill]

Originally Posted by z711

I decided to put my house for sale in Johnson's Ranch in San Tan Valley Az. The realtor disclosed that the HOA would charge me over $1100 plus the $400 transfer fee to sell my house. With all commissions; fees; ect. It will cost me over $15000 to sell my house not including if the buyer wants me to pay part or all of closing cost. Not happy! Lesson; don't buy a home unless you plan to die there. The housing market is not good for a seller right now. These fees are to big of a hit.

I suggest you call the HOA yourself and ask these questions:

How much is the Disclosure Fee?
How much is the Transfer Fee?
How are they stated? (They could lump them all together and call them transfer fee)
Is there a capital contribution fee? How Much?
Are there any other fees?

With a $400 transfer fee, the $1100 fee sounds high, without knowing what it is.

Typically the seller pays the disclosure fee, and the buyer pays the transfer fee, and other fees. However, it is all negotiable.

Yes, it is a buyers market right now, so it's tough on sellers. How soon we forget that not too long ago it was a sellers market and it was tough to buy a home.

[TiredOfyycCold]

Originally Posted by Captain Bill

I suggest you call the HOA yourself and ask these questions:

How much is the Disclosure Fee?
How much is the Transfer Fee?
How are they stated? (They could lump them all together and call them transfer fee)
Is there a capital contribution fee? How Much?
Are there any other fees?

With a $400 transfer fee, the $1100 fee sounds high, without knowing what it is.

Typically the seller pays the disclosure fee, and the buyer pays the transfer fee, and other fees. However, it is all negotiable.

Yes, it is a buyers market right now, so it's tough on sellers. How soon we forget that not too long ago it was a sellers market and it was tough to buy a home.

OK - off topic... but WELCOME BACK Captain!!! I've missed your posts...

[SMG]

Those HOA fees sound excessive z711, I question whether they are accurate. Get a breakdown, sounds like some old dues or a lien may be in there.