While condos have gotten cheaper, buyers can be surprised by rising HOA fees. "Condos really represent kind of the entry rung to the homeownership ladder," Berner, the economist, said. "This was supposed to be an affordable way to get into homeownership, and now you're getting squeezed by these costs that continue to rise and you don't really have the power to control."
Two-and-a-half years into owning a townhome in Orlando, Fla., one homeowner saw their HOA fees go from $330 a month to $575, they wrote on Reddit. "When the economy gets better and I get another job, after I complete major repairs I'm selling it and 100% never dealing with an HOA again," they said.
House hunters looking into buying a condo should check what the HOA reserves are like, Ringbauer said. He's had clients do their due diligence and find that a condo's reserves were empty - meaning that if they were to buy the unit, they could soon be hit with a steep special assessment to cover urgent fixes, or the board could raise monthly fees to recover funds and cover shortfalls.
Worrying about their home's value falling
This mistake won't cost you money, but it can cost you sleep.
