What is considered high for HOA dues?

Question

My wife and I purchased a house a while back. We were talking to some friends and found that we pay quite a bit more than them while living in a similar neighborhood. What is an average and what could be considered "high"?

Here's a link to see our neighborhood and the amenities:

http://www.sunset-tx.com/community1.htm

The amenities are:
- 3 pools
- 2 basketball courts
- 1 roller hockey rink
- 2 playgrounds

Once completed, I heard that we will be the second largest subdivision in the state of Texas. We are about 50% built out at this point. We currently pay about $150 per quarter which comes to $600 per year. I don't think it's a crazy amount of money. I'm just wondering if it's higher than most.

Also, my wife and I attended our annual HOA meeting in January and saw the budget. From what I recall there was a huge surplus, though I don't remember what that was and don't have the piece of paper in front of me.

Answer 1

Every condo/townhome project is different. The amount and extent of the common areas varies dramatically. Age of the property is always a factor.

Alot can depend on how low the developer set the rates during the construction phase for the initial buyers. They generally set them artificially low, to not scare off buyers. Granted, the properties are brand new, but HOA dues must factor in budgeting for future repairs. For example, every 10 years, the roofs get redone. Every 15, sidewalks. Every item they cover has an expected expiration date/repair date, and must be budgeted for. When I bought my condo, dues were $165/mo. Within 10 months, the development was sold out. Within 3 years, I was paying $245/mo. Nothing changed except the developer turned over control of the HOA to the buyers. Buyers immediately had to reset the entire budget to match reality.

If they didn't collect enough in the early years, you have to make up for it later. Or risk getting a large one-time assessment for major repairs if something goes wrong too early.

You have every right to attend meetings and review their budgeting. Perhaps you could get your friends to get a copy of their HOA budget, and you can compare the two and see where your money is really going. It's possible yours is right and theirs is too low.

But sorry, there is no possibility of giving you an "average" or "high" amount, there's simply far too many variables.

Answer 2

This is a question that you can’t definitely answer, you know! There are a hundred million different answers to this question. These dues are extremely subjective and they will change according to the region in which you stay. Even if you’re living in the same state, you are definitely living in different buildings, condos and that means that your property is being governed under different sets of rules and a different HOA.

A different HOA would mean different rules and that would also translate to different prices and rates. Also, it would depend on a number of other things as well including the area in which the house is, the extent of area that has been covered, the kind of services and maintenance offered by the HOA and the period for which this maintenance has been calculated.

So, you can’t really say what the highest HOA due can be; it could be anywhere from a 100 dollars to 700 dollars. You would really be in a better position collecting this information from neighbors depending upon your area and the state. You can also approach FAi Facilities Advisors Inc. for more guidance.

Answer 3

Its almost impossible to answer your question because so much depends on where you live, how expensive you home is, and what benefits are extended to you from the HOA.

I have heard of people paying from 50 aa month to 500 a month and each case is different when judging if what they are paying is "high" or not.

Answer 4

we pauy 150.00 a year, but we are in a small town....Probably depends on your area..