When buying a Boston condo view the condo fees
Boston Condos for Sale and Apartments for Rent
When buying a Boston condo view the condo fees
When buying a Boston condo view the condo fees
When buying a home, you’re probably thinking about mortgage rates, home prices, your down payment, and maybe even your closing costs. But you may not be thinking about Boston condo fees. While you won’t necessarily have these, you should know it’s a possibility, depending on where you decide to live.
A Boston condo association is basically an organization that oversees a housing community (including shared spaces) and sets and enforces rules for things like upkeep. Some buyers love the perks that come with condo fees, others may see the fees as an extra expense. The key is knowing what they cover and whether the benefits outweigh the costs for you.
The Benefits of Having a Condo Association
Think about this. If you’ve fallen in love with a home because of how beautiful the community is – maybe it’s the landscaping, the well-maintained streets, or the overall curb appeal – there’s a good chance the HOA is one of the reasons why it looks so good. Here are some of the biggest perks:
- Neighborhood Maintenance: Many HOAs cover landscaping, snow removal, and upkeep of common areas. This helps maintain the neighborhood’s overall appearance.
- Amenities: Depending on the neighborhood, an HOA could also include access to perks like a pool, clubhouse, fitness center, or even private security. In these cases, while you have to pay an HOA fee, you’re also saving money in some ways because you don’t need to have separate gym or pool memberships anymore.
- Property Value Protection: Since HOAs enforce community standards, they prevent homes from falling into disrepair. So, you don’t have to worry about nearby eyesores hurting your property value.
- Less Personal Upkeep: In some communities, HOAs even take care of exterior maintenance, roof repairs, or other shared responsibilities, reducing the work for homeowners.
Condo Fees: More Common, Especially in Newer Neighborhoods
Does every house have HOA fees? No, not all homes have them. But they are common, especially in newer communities. In fact, over 80% of newly built single-family homes are now part of an HOA, according to the Wall Street Journal (see graph below):
But it’s not just new builds that have homeowners associations. Homes that were previously lived in may have an HOA fee too. According to Axios roughly 4 out of every 10 homes had an HOA in 2024.
HOA Fees and Your Home Search
Ask your agent about which homes do and do not have HOA fees as part of your search – and how much the fees are. Some neighborhoods have quarterly dues, some have monthly, some don’t have any at all. To give you some sort of baseline though, the median HOA fee rose last year to $125 per month, based on a report from Realtor.com.
But remember, the costs vary and sometimes these fees give you access to great perks. As Danielle Hale, Chief Economist at Realtor.com, explains:
“When considering a home with an HOA, buyers should work to understand what benefits it provides like maintenance, security, or communal amenities, and how the HOA fees factor into their overall budget.”
Boston Condos for Sale and the Bottom Line
it’s a good idea to review the rules and fees so you know exactly what’s included, how that fits into your overall budget, and what restrictions may apply.
Uncover Hidden Costs in Condo Fees Financials Before You Buy
Not everyone is able to understand the financials within HOA documents, but a lot of buyers certainly wish they had!
When buying a condo, you’ll get a thick stack of papers covering everything from the annual budget to reserve studies. These documents are key to getting a clear picture of the building’s financial health.
So, what should you be looking out for?
- Special assessments: The building might need significant repairs, like a new roof or exterior maintenance. Sometimes, there isn’t enough money in reserves for this, so the HOA may issue a special assessment. This is a one-time fee that owners must pay to cover the costs.
- Upcoming repairs: Also, check for any planned repairs that could increase your expenses in the future. Say, if a major roof repair is needed, you’ll want to know whether there’s enough in the reserves to cover it or if you’ll be on the hook for a costly assessment.
Make sure you go over these documents with your agent! They will help you understand if the building is well-maintained and whether there are any financial red flags to be aware of
Byline – John Ford Boston Beacon Hill Condo Broker 137 Charles St. Boston, MA 02114
When buying a Boston condo view the condo fees
Condominium association (HOA) dues in downtown Boston are at record highs, making Boston condo for sale purchases harder for buyers already grappling with the highest interest rates we’ve seen in 20 years.
Boston condo fees are at a record high
It’s no secret that Boston condo fees have been steadily rising, with a big uptick happening during the pandemic. Let’s face it, everyone working from home drove up operating costs like water use, property management, and of course, recycling all that cardboard and package material from deliveries. We can also more recently add escalating building insurance into the mix. Boston condo dues typically cover all these costs (and more). This is especially affecting in larger buildings, but even smaller ones are feeling the strain of keeping up with basic operating costs.
High Boston condo fees seriously drive up buyer’s monthly payments.
How are Boston condo fees determined
It’s worth mentioning that property dues are also based on a unit’s square footage. Boston condo buyers looking for spacious condos in large buildings will be paying upwards of $1,000/month, and closer to $2,000/month for ultra-luxe buildings, especially if they’re newer construction.
Granted, buyers in the luxury condominium price ranges may not be as sensitive to the condominium dues. But everyone is looking for a deal these days, and high monthly fees don’t convince buyers they’re getting a deal.
So how do we keep the Boston condo for sale market moving for properties that have high monthly dues? Here are some pro tips:
Boston Condo Buyers:
Factor in condominium dues when you get preapproved for a loan , and be realistic about the dues range based on the type of property and location you want. Watch out for additional monthly costs that may cover other amenities like parking. (Some condo buildings have separate parking HOAs that carry a fee in addition to the regular HOA dues.) Work with your Realtor ahead of your property search to target buildings and neighborhoods with dues that will be affordable for you.
Consider sweetening the pot by crediting one or two years’ worth of condo fees to the buyer. That can help you stand out from the pack, particularly if your condo has been on the market for 30 days or more.
Updated: Boston condos for sale website 2023
What do Boston condo fees cover?
Among the reasons condo fees vary from one Boston condo building to another are the size and age of the development as well as the amenities and features covered by the fee.
Large developments that pay a management company can have higher fees than a small self-managed building. However, splitting costs between just four or six units can mean condo fees are a bit higher than a building with 10 or 15 units.
Older condos often have higher fees than newer buildings because they need to factor in repair and replacement of common-area heating and air conditioning systems, an elevator or a surface parking lot.
When examining condo fees, it is important to realize you are not making a dollar-for-dollar comparison. While condo association fees typically cover a reserve fund for major repairs, a master insurance policy for the community, maintenance of the development and trash and snow removal, various other things may or may not be covered.
What is an appropriate Boston condo fee?
When comparing Boston condos, you will need to evaluate your budget and determine how much you can afford to pay in fees. Next, you will need to determine whether a low or high condo fee is justified by the condo’s condition and amenities.
A low fee may look good to you, but if it covers very little and is an older condo with deferred maintenance, you can expect to pay a higher fee or even a special assessment in the future. A high fee may seem unappealing, but if it pays for a lot of amenities and/or your utilities, it may be more affordable that you think.
Boston Real Estate and the Bottom Line
It is also important to remember that the association isn’t a “they” or a “them” it is you. you are the association.
For more information please contact one of our on-call agents at 617-595-3712.
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For more information please contact one of our on-call agents at 617-595-3712.
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