Getting (and Wanting) What You Pay For
You’d certainly think that $300 a month for Association dues is a better deal than $500, assuming two near-identical units.
But, the truth is, the higher fee could be a (much) better value.
How so?
If it covers a long list of services and building amenities that the cheaper monthly fee doesn’t.
How Many Amenities
Things like an in-door pool; state-of-the art exercise room; on-site building management and staff; multiple party rooms; rental guest rooms; monthly cable TV, etc.
That’s in addition to “the basics”: lawn care and snow removal (at least, in the ‘burbs), and any common area and exterior maintenance.
When it comes to Buyers scrutinizing monthly association fees, then, the trick is: 1) making sure the monthly fee is within their budget; 2) determining what the fee includes, and making sure that it reflects good value**; and 3) honestly assessing whether they want and will use all the things they’re paying for.
**I’ve had more than a few clients who, after they purchased, got on the Association Board to have more of a say in selecting contractors, making decisions about capital improvements, etc.
But, prospective Buyers shouldn’t count on dramatically lowering Association expenses.
P.S.: At least in Minnesota, anyone purchasing a unit in a Common Interest Community (“CIC”) ” typically condos or townhomes ” has 10 days to review the Association’s articles, bylaws, financials, etc.
See also, “Condo (and Townhome) Association Due Diligence: What REALLY Matters?“; and “Why Upper Floor Condo’s Are Cheaper Than Lower Floor Ones.”
