By Dayv Morgan
When it’s time to put a home on the market, many sellers don’t think about the impact high fees will have on resale. It is important to keep in mind what buyers in the area will consider when shopping for a home in Maricopa, including homeowners association fees.
HOA monthly dues
Acacia Crossings $71.50
Cobblestone Farms $92.82
Desert Cedars $66.00
Desert Passage $99.00
Homestead North $48.50
Homestead South $85.15
Maricopa Meadows $73.10
Palo Brea $55.00
Province (detached homes) $220.00
Province (villas) $286.52
Rancho El Dorado $42.63
Rancho El Dorado Phase III (Lakes) $62.92
Rancho Mirage $91.67
Santa Rosa Springs $68.00
Villages at Rancho El Dorado $83
It’s also important for buyers to research costs associated with nearby HOAs and how that may affect their purchasing power.
Let’s take a look at an example: At a 4.5 percent interest rate over 30 years, $50 a month in HOA fees equates to about $10,000 in purchasing power. We’ll say that a buyer is qualified for up to a maximum of $160,000 and the lender estimated the HOA at $50 per month. The buyer could make a purchase in Homestead North, where the HOA is $48.50 a month at $160,000. But, if he purchases in Desert Passage where the HOA fee is almost double that of Homestead, he will only be able to afford a home up to $150,000, assuming taxes and interest are the same.
Another cost often overlooked is HOA fees that must be paid at closing. Palo Brea, for example, has over $1,500 in disclosure and capital improvement fees, compared to Rancho El Dorado’s $400 disclosure and transfer fees. While these are often paid by the sellers, the fees could be negotiated to be paid by the buyer. However, the buyer will likely want a lower price in return.
Even worse, the buyer could walk away altogether at the thought of having to pay the HOA over $1,500 in the future.
Dayv Morgan, HomeSmart Success
This column appears in the December issue of InMaricopa.