Understanding Condo HOA Fees: What you need to Know

Purchasing downtown Dallas luxury condos is a smart move for many Dallas residents.

Downtown Dallas luxury condos boast some of the most outstanding features, services and amenities and, let’s face it, the location just can’t be beat.

Whether you’re a professional or empty nester, downtown Dallas luxury condos can provide the best urban living in Dallas. However, it is important to understand that purchasing downtown Dallas luxury condos are much different than purchasing a single-family home.

In particular, you must take into consider Homeowners Association Fees (HOA) when purchasing a condominium. HOA fees cover many things, including maintenance, parking, landscaping, and the upkeep of any building amenities and services.

There are a number of steps you should take when viewing downtown Dallas luxury condos. In particular, there are some obvious - and not so obvious - points about HOA fees that you should familiarize yourself with before purchasing a condo:

Be aware that all HOA fees are not the same. In fact, HOA fees can vary widely between downtown Dallas luxury condo properties. HOA fees can often break a budget, so always remember to consider these fees when considering your monthly housing budget.

Always ask for the name of the management company responsible for your building’s HOA. If your building is not professionally managed, ask for the name of the head of the HOA.

Ask about the percentage of the owner-occupied tenants in the building, as your ability to obtain financing could depend on this. In particular, Fannie Mae and Freddie Mac have placed limits on financing condos when there are too many investors involved in the building. In order to be eligible for financing, most lenders will want proof that the building is at least two-thirds owner occupied.

Inquire about any additional assessments that have been enacted as of late. Ask about any anticipated projects in the works, as these could raise your HOA fees. However, many HOAs will have money set aside to handle large maintenance or improvement projects.

Ask about any current or past disputes among the HOA members, and whether this has been resolved.

What are the restrictions involved with the HOA? Make sure you feel comfortable with these restrictions, and whether you feel you can live with them for the long term.

Contact me at 214-763-5115 or by e-mail at sarah.halbrook@kw.com if you are looking for a Dallas downtown condo. I would be happy to help you and provide any additional information.