Ever wonder if your HOA fees are negotiable? It’s a question many people ask especially in the early stages when they’re trying to buy a condo or a unit. Over the years I’ve spoken to people that have handled the situations in some exciting ways. We’ll take an in-depth look at some of these methods people have explored and what options you may have when it comes to negotiating fees with the homeowners association.
Homeowners Association Fees Negotiation
Okay, so first off, the fees with the homeowners association typically are not negotiable. However, there are ways to navigate around some of these, and we’ll take a quick look at them. These fees are charged by the HOA to manage the property. These additional fees over and above the mortgage are usually put in place to cover costs for things like snow removal, tennis courts, roof repairs, driveway repairs, insurance, exterior maintenance, pool maintenance, Clubhouse, tennis courts, and additional areas around the property considered common areas. I’ve seen typical problems arise with the homeowners association.
In a lot of cases, you will find that the older the subdivision, the more expensive the fees. Usually, the older the community is in age, the higher the payments for the simple reason it’s essential to cover major repairs and replace aging structures with issues such as wood rot, downspouts, siding, gutters and even roofs. For subdivisions newer in age, normally five years or earlier, the overhead on what’s involved in maintaining infrastructure is a lot less. The homeowners association often has a lower fee in situations like this.
The less popular approach
Now I I’ve even heard people wanting to get on the board to have a say when it comes to voting because some of these prices for service providers fluctuate slightly. What that means is, the amount of the contracts providing services to the HOA a can decrease or increase from time to time for some associations. If the HOA votes and it’s approved to use other service providers for example dealing with cutting the grass on the grounds or other contracts that are used for maintenance when it comes to the pool or additional ground amenities. This strategy is viable.
The most effective approach
The strategy I’ve seen used more than any other is dependent upon the strength of the market and what state you reside. For instance, if you’re looking to buy a home in a gated community or a condo, the markets are sometimes hot and sometimes cold. If the market favors a buyer, the strategy used most often is to negotiate with the seller perhaps where they cover the cost of the homeowners association fees six months in advanced As part of the sale. Some areas may provide you more options because there’s more inventory on the market to invest in allowing you to negotiate better.
So in conclusion, I always suggest reviewing and looking into the monthly HOA monthly fees. Check the homeowners association budget just to ensure there is enough surplus, mainly to determine if there are any future increases projected in their budget.