When it comes time to sell your home, there’s one factor you may not have considered: your Home Owner Association fees. While you probably know that HOA dues are commonplace, you may not realize that additional fees often apply when selling your home.
HOA management companies often charge fees to:
– Change the name on the account; this is called a Transfer Fee. (Average cost: $300)
– Issue a Status Letter confirming that you are fully paid up and have committed no architectural violations. (Average cost: $150).
– Issue Common Interest Community (CIC) documents. These are documents the seller is required to provide to the buyer revealing the HOA’s financial status, by-laws, and other pertinent information. While some associations provide these free of charge on a neighborhood website, others charge a hefty sum. (Average cost: $250)
– The seller and buyer negotiate who will pay for the first two items. The cost of the CIC documents, however, is always paid by the seller. While the fees noted above are average, homeowners should know that separate fees can run as high as $1,000. And if you have more than one HOA (for example, if your condo HOA is governed by a condo master association), the costs can double, as you will need documents from both entities.
The takeaway?: Know how such fees might impact the cost of selling your home, and if you happen to be on a committee searching for an HOA management firm, be sure and ask about such fees when considering your options. Your community will thank you.