Buying a condominium or townhouse in the Greater Boston area can be an excellent choice for those seeking a blend of homeownership, convenience, and value. However, properties with homeowner's associations (HOAs) come with unique considerations that buyers should carefully evaluate. Here are some key factors to keep in mind.

Watch our video above to learn all about condo fees!

What are HOA fees or condo fees?

Home Owner's Association (HOA) fees or condo fees are monthly or quarterly payments collected to cover the cost of maintaining shared amenities and common areas. These fees can vary significantly depending on the property, ranging from a couple hundred to over a thousand dollars per month. The fee is based on the particular percentage ownership share of the subject condo and is set in the condo association documents.

What do HOA fees typically cover?

The short answer is: there is no typical! In the Boston area, we have condo associations with as few as two units as well as large complexes with hundreds of units. Accordingly, HOA fees and what they cover varies significantly. Here are some of the things they might include.

Master insurance for the building’s exterior and common areas.
Maintenance of shared spaces such as lobbies, pools, and gyms.
Utilities for common areas (e.g., lighting in the hallways and water for the landscaping).
Reserve fund contributions for future repairs, like elevator maintenance or exterior painting.
Landscaping and/or snow removal.
Some fees even include utilities for individual units, such as heat or water.

Key Tip: Always ask for a breakdown of what’s included in the HOA fee. A lower fee might sound appealing but could mean fewer services or amenities.

Are HOA fees negotiable?

While the price you pay for a condo may be negotiable, the HOA fees are not. Every year, the HOA meets to go over any projects and expenses for the upcoming year. The association will determine if the fees need to be increased or kept the same to meet the annual budget. As a unit owner, this is a process you can be involved in!

What’s important to know about the HOA’s financial health?

The financial stability of the HOA directly impacts your future expenses. Buyers should request copies of the HOA’s financial statements, budgets, and reserve fund details. Take a close look at these items.

Adequate Reserves: A healthy reserve fund indicates the HOA is prepared for major repairs, reducing the risk of surprise expenses.
Special Assessments: If reserves are insufficient, owners may face unexpected costs for big projects. These are called special assessments. Check if the HOA has any current special assessments or if they are considering projects in the future.
Disputes: Are there any lawsuits involving the HOA? Are there frequent disputes among residents? These are potential red flags that new buyers should carefully consider.

Key Tip: Reading the minutes from the last several HOA meetings can provide insight into ongoing issues or future plans.

What questions should you ask about rules and regulations?

HOAs often have rules that govern how you can use your property and shared spaces. While these rules help maintain property values and harmony among residents, they can also feel restrictive.

Are there restrictions on renting out your unit?
Are pets allowed, and if so, are there breed or size restrictions?
Can you make exterior modifications, such as gardening?
What are the policies for using common areas, such as shared patios or laundry and storage facilities?

Key Tip: Carefully read the condo documents to avoid surprises later.

How does all of this affect long-term value?

In Greater Boston’s competitive real estate market, condos and townhouses with HOAs often hold their value well due to their amenities and convenience. However, the specifics of the HOA can affect resale potential.

Is the HOA fee comparable to similar properties in the area?
Does the community offer sought-after amenities like parking, storage, or outdoor spaces?
Are there any planned developments in the area that could impact property values?

Key Tip: Work with a real estate professional who understands the local market and can guide you through evaluating the property’s long-term potential.

Purchasing a condo or townhouse with an HOA in Greater Boston offers many advantages, but it’s essential to do your due diligence. By understanding the HOA fees, financial health, and rules of that particular condo association, you can ensure your investment aligns with your lifestyle and financial goals.

Need help finding the perfect property in Boston’s competitive market? Contact Dwell360’s experienced team today. We’ll guide you through every step of the process, from evaluating HOA documents to negotiating the best deal.

Dwell360 is an elite residential real estate firm based in Waban, Massachusetts, servicing the cities and suburbs of metro Boston. Owned by REALTORS Ed Johnston and John Lynch, Dwell360 is a leader in luxury real estate throughout Newton, Needham, Boston, Brookline, and other communities of the greater Boston area and on Cape Cod. Search for homes in Massachusetts or give us a call! Whether you’re in eastern Massachusetts or another part of the country, we’ll connect you with a fantastic agent.

Things to Consider When Purchasing a Condo or Townhouse with an HOA in Greater Boston