The community cost no one wants to talk about

___

Published Date 6/27/2025

If you’re buying a home in a new or fairly new community, the chances are good that you’ll be tacking a homeowners (HOA) fee on to your monthly outgo. And with today’s high home prices, rising HOA fees are scaring off potential buyers—especially as mortgage rates remain elevated and household budgets get tighter, according to Realtor.com’s Elissa Suh.

“For new buyers, the idea of taking on a home plus hundreds of dollars in monthly fees can be a tough sell. Yet for others—especially downsizers and retirees—the arrangement still holds strong appeal,” says Suh. Why? Because HOA communities often come with perks like professional landscaping, access to amenities, and hassle-free upkeep. In many cases, these features make daily life more convenient—and sometimes even more affordable over time.

But what if that fee poses a hardship? “If you're a prospective buyer wondering whether HOA fees can be negotiated (like rent, insurance premiums, or other housing costs), the answer isn’t as straightforward as you might hope,” says Suh. “When you buy a home in a community governed by a homeowners association, you’ll likely be responsible for paying monthly or quarterly fees. These aren’t just arbitrary costs—they’re pooled funds used to help maintain the shared spaces and overall quality of life in the community.”

She goes on to list how HOA fees typically cover routine landscape maintenance, snow removal, pest control, trash pickup, and wastewater management in addition to the upkeep of amenities like pools, gyms, clubhouses, and playgrounds. Throw in security and safety features, such as gated attendants, patrol services, and cameras and electronic access systems, and you’ll understand how an HOA association must maintain reserve funds for major repairs and replacements.

Not all HOAs are alike, however. “Costs and services vary widely depending on the community, region, and property type,” says Suh. “A luxury condo in a high-rise building with valet parking and 24/7 concierge service will naturally have higher fees than a small HOA for single-family homes with basic landscaping.”

But even within the same city, two communities can offer the same amenities while having different standards of upkeep—and so their fees could differ significantly. “That’s why it’s essential to review what’s included in the fee before buying a home with an HOA,” she says.

And no. None of it is negotiable, like a home’s sale price. “In reality, these fees are typically set by the HOA and apply equally to all homeowners in the community. They’re based on the association’s budget, and the actual amount charged by the HOA is generally not negotiable on an individual basis,” says Suh.

What might be negotiable, however, is who pays for it, at least initially. “For example, some buyers negotiate for the seller to cover several months (or even a year) of HOA dues as part of the closing agreement. This can be especially helpful if you're already stretching your budget to afford the home, and it's similar to asking the seller to pay closing costs. It doesn’t reduce the HOA fee, but it does reduce your out-of-pocket expenses upfront.”

So if the property you're bidding on is in a neighborhood with unusually high fees, and it has been sitting on the market for a while, the seller might be more open to creative concessions like this to close the deal, according to Suh. Then once you become a homeowner, you can get involved in the HOA to try to influence costs. Join the board and work with the community to push for budget changes or cost-cutting.

There's another, often overlooked cost that can hit your wallet hard besides the standard HOA fees. One more thing to watch out for? Special assessments. It’s an additional fee charged by the HOA when it doesn’t have enough money in its reserves to cover a major or unexpected expense. “This could be anything from emergency roof replacement from a natural disaster to legal expenses and lawsuits,” says Suh. “In some communities, special assessments might be rare, while in others, especially those with aging buildings or poorly managed finances, they can happen every few years—or even more frequently.” And these assessments are separate from—and in addition to—your regular HOA dues. “Unlike your predictable monthly fees, special assessments often come with little warning and can be expensive, depending on the issue and the number of homeowners in the community,” she adds.

One of the best ways to avoid surprise costs like these is to review the HOA’s financials—including reserve funds and recent budgets—before buying into a community. “A knowledgeable real estate agent can help you request and interpret these documents and spot potential red flags before you commit.” says Suh.

Realtor, TBWS

• < Prev
• Next >

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

American Home Lending USA, LLC - NMLS ID: 71983. To verify licensing, visit NMLS Consumer Access (www.nmlsconsumeraccess.org). Equal Housing Lender.

Jeff Beck

President

NMLS: 19488

American Home Lending USA, LLC

240 S Buchanan St, Edwardsville IL 62025

Company NMLS: 71983

Office: 618-310-0091

Cell: 618-806-2281

Email: jbeck@ahlusa1.com

Web: https://www.americanhomelendingusa.com/