She Found Her Dream Skyline Condo—Then Pulled the HOA Budget and Discovered a Impending $45,000 Special Assessment Trap
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If you’re looking for a place to live, may I suggest steering clear of any and all HOAs. I know this isn’t always possible, but if your only option is to choose a place with an HOA, be sure you do your research before signing anything.
Not all HOAs are created equal. Most seem pretty awful, but some aren’t too bad. One thing they’re all going to have in common is that you have to pay dues. Make sure you know what you’re paying and what the chance is of having to pay more than the amount you’re told up front.
In this story, one potential condo buyer backed out of a deal due to the HOA’s budget proposal.
Let’s read all about it.
Backed out of a condo because of the HOA
I backed out of an incredible condo that looked absolutely pristine – the unit itself and the entire building – after a current owner shared the 2026 budget proposal.
We were still waiting for the building to share HOA and due diligence documents with us a week after the offer was accepted.
The board proposed to increase the HOA – which was already ~$1,000 – by several hundred dollars due to almost 8 figures of debt.
This is due to decades of deferred maintenance, bad budgeting, and rising insurance costs.
They couldn’t get a loan.
Fannie Mae and Freddie Mac declined to provide loans to me due to critical repairs.
The owner and realtor claimed that the reserve was healthy and there had never been any special assessments. (The listing also included the balcony in the square footage and price per square foot.)
The unit has been relisted for the same asking price, with no credits or any mention of potential increases or non-warrantable status.
This is a good lesson to learn.
I’m so glad we did our due diligence.
I also learned that when I buy a condo – especially with insurance costs and the 2021 Surfside collapse resetting lender standards – I should account for potentially major HOA increases, not just small increases over time.
That was a close one! I’m glad they didn’t buy the condo.
Let’s see how Reddit responded to this story.
This person has a prediction for the future.
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Another person can relate to this situation.
If you enjoyed this story, check out this post about a home buyer who was surprised to learn his neighbors were upset about him removing a fence.
If this person is equating the HOA dues to rent, then this statement is also true of houses that are part of an HOA.
Another person points out what OP did right.
Walking away from a bad deal is a huge win. Trusting a realtor is not always the best idea. It’s better to see the facts for yourself and/or have your lawyer look over any documents you don’t trust yourself to understand well enough. You don’t want to sign anything you’re going to regret signing.
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