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We own a condo in Seattle (Ballard) with no mortgage. It has always rented easily, but our HOAs continue to rise, along with the taxes. I am questioning whether we should sell before the HOAs (now above $350/month with no building amenities) become an obstacle to selling. Our condo will be at the low end of cost for that area (average sales price for one-bed condos are now over $375K), so maybe that will offset the HOAs, but I'm not sure. Any thoughts about high HOAs hampering sales? Or when the Seattle market will cool down?
Yes, inventory is very limited, with only 2-3 one-bedroom condos on the market at a time, and they seem to go quickly. However, my question is more about rising HOAs and whether they can get to a level that turns buyer away.
Yes, inventory is very limited, with only 2-3 one-bedroom condos on the market at a time, and they seem to go quickly. However, my question is more about rising HOAs and whether they can get to a level that turns buyer away.
1. How does the HOA fee compare with that at comparables?
2. What do you get for the HOA fees?
3. Are the HOA fees high because of deferred maintenance?
That's the problem--this is a small complex (12 units) with no amenities other than a secure garage. The building is an older one, but the HOAs have gone from the $260 range to (the next-up price will be) $380. We keep abreast of the board meetings and minutes and it just seems that the building requires a lot of maintenance. In addition to the high HOAs, we are currently paying a 2-year special assessment for a new roof. The area in general is highly desirable--if the general trend continues, this unit could exceed $400K in a few years--but I just worry about the costs of this particular building when it comes time to sell, and wonder if we should jump unload it in the next few months.
I would be concerned in my area, yours may be different, on the extreme weather events that will continue to cost untold amounts in maintenance or clean up in a small association/older building. I would personally unload.
Have you obtained the HOA fees for similar buildings in the vacinity? If your are dramatically higher for similar sales prices, I would consider unloading.
Since I keep track of comparable sales, I can see that the HOAs for our building are greater than most of the other buildings, and those building offer amenities like a common patio, workout room, etc. For a buyer looking to save on the overall price, our unit will certainly offer that, but the higher HOA dues could be a real impediment. We are distant owners, or I would go onto the association board to have a stronger voice. We do keep up with the budget information, but HOA dues decisions are out of our hands.
Since I keep track of comparable sales, I can see that the HOAs for our building are greater than most of the other buildings, and those building offer amenities like a common patio, workout room, etc. For a buyer looking to save on the overall price, our unit will certainly offer that, but the higher HOA dues could be a real impediment. We are distant owners, or I would go onto the association board to have a stronger voice. We do keep up with the budget information, but HOA dues decisions are out of our hands.
There's "greater" (like $75) and then there's "much greater" like $150+ higher per month. Which is it?
We own a condo in Seattle (Ballard) with no mortgage. It has always rented easily, but our HOAs continue to rise, along with the taxes. I am questioning whether we should sell before the HOAs (now above $350/month with no building amenities) become an obstacle to selling. Our condo will be at the low end of cost for that area (average sales price for one-bed condos are now over $375K), so maybe that will offset the HOAs, but I'm not sure. Any thoughts about high HOAs hampering sales? Or when the Seattle market will cool down?
Although no one can accurately predict when the market will peak, if I were you, I would sell it now as the price is good now.
Of course, smart buyers are going to consider the high HOA fees in their decision as well as what is included in those high HOA fees.
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