HOA Dues: 7 Questions to Ask Before Buying a Home
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Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
When you find a home you love, HOA dues can be easy to view as just another number on the listing. But before you make an offer, it’s worth looking beyond the monthly fee.
What do those dues actually pay for? Have they been increasing? Could you face additional costs after you move in? The answers can affect both your monthly budget and what you ultimately pay to live in the community.
We spoke with Cassie Scramlin, a top real estate agent in Battle Creek, Michigan, to explain what buyers should investigate before purchasing a home with HOA dues.
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1. What exactly do my HOA dues cover?
HOA dues are recurring fees paid by homeowners to help cover the costs of maintaining and operating their community. Depending on the association, you might pay them monthly, quarterly, or annually.
For buyers, Scramlin points out that the value of what you receive in return can vary considerably.
“It’s always good to ask for a copy of the HOA CC&Rs (Covenants, Conditions, and Restrictions) and handbook,” she explains, adding that this is where some buyers don’t take a close enough look, which can lead to surprises after closing.
HOA dues may help pay for shared community expenses such as:
- Common-area landscaping and maintenance
- Pools, clubhouses, fitness centers, and other shared amenities
- Common-area utilities
- Security
- Trash or snow removal
- Roads or parking areas
- HOA management and staff
- Insurance for common property
- Contributions to reserve funds
Before buying, find out exactly what your dues cover and what expenses will remain your responsibility. For example, one HOA might include certain utilities or exterior maintenance, while another with similar dues may not.
Scramlin cautions that even if you’ve owned a home with an HOA in the past, your new HOA terms can be very different.
The amenities matter, too. A community with a pool, staffed gate, clubhouse, and extensive landscaping will have different operating expenses than one with few shared amenities.
If you’re trying to determine whether the amount you’re being charged is reasonable, compare both the dues and what’s included with similar communities in the area. You can also read our guide explaining why HOA fees can be high and what factors influence their cost.
2. How often have the HOA dues increased?
Knowing today’s HOA dues is important, but it doesn’t tell you what you might be paying several years from now.
Before buying, ask about the association’s history of dues increases. Reviewing several years of information can give you a better sense of whether fees have remained relatively consistent or have been changing frequently.
It’s also worth checking the HOA’s governing documents, which spell out how the association operates and which rules apply to increases. Again, Scramlin warns that the process can vary depending on the association and state law, so avoid assuming that today’s payment will remain unchanged.
An increase isn’t necessarily a sign that something is wrong. HOA expenses can rise as insurance, utilities, maintenance, labor, and other operating costs increase. Associations may also need to collect more to adequately fund reserves for future repairs and replacements.
Instead, look at increases in context. Ask why dues have changed, what additional money is being used for, and whether another increase is anticipated.
That leads to another important question: Are your regular dues likely to be your only HOA expense, or could an additional bill be coming?
3. Are there any special assessments I should know about?
Your regular HOA dues may not be the only association expense you’ll encounter as a homeowner.
A special assessment is an additional charge an HOA may levy to help pay for a major project or other expense beyond its regular operating costs. Depending on the community, that could include a major roof replacement, structural repairs, paving, plumbing work, or another significant or costly project.
Before buying, ask whether the HOA has recently levied any special assessments and whether another assessment is pending or being discussed. It’s also worth finding out whether owners are still making payments on an existing assessment.
The amount matters, but so does the reason behind it. A special assessment can provide useful information about the property’s condition, upcoming projects, and the association’s ability to prepare for major expenses.
A recent example: $26,000 per condo owner
In September 2026, homeowners at the 198-unit Villa Moura condominium complex in San Clemente, California, said they were hit with an emergency HOA assessment of more than $26,000 per unit for roof replacements. Some residents are challenging the assessment, arguing that the roof work involved deferred maintenance rather than an unforeseen emergency.
The case illustrates just how significant a special assessment can be. Before buying into an HOA community, ask about upcoming major projects, previous and pending assessments, and how the association plans to pay for large repairs.
4. Is the HOA financially prepared for major expenses?
A low monthly HOA fee isn’t necessarily a bargain if the association isn’t setting aside enough money for future repairs.
Many associations maintain reserve funds for major expenses that don’t occur every year, such as replacing the community center roof, resurfacing parking areas, repairing or replacing fencing, fixing an elevator, or updating other shared components like a pool and playground.
That’s why it’s worth asking how the HOA is preparing for long-term expenses, particularly when you’re buying a condo or another property where owners share responsibility for major building components.
In particular, if you’re buying a condo, Fannie Mae recommends asking how much money is in the association’s reserve fund for future repairs, as well as whether special assessments could affect the cost of owning the unit.
If available, review the HOA’s budget, reserve information, and any reserve study or documentation about upcoming capital projects. You don’t necessarily need to become an expert in HOA accounting. Instead, look for signs that the association is planning for foreseeable repairs rather than relying entirely on owners to cover large expenses as they arise.
5. How will HOA dues affect what I can afford?
When deciding how much home you can afford, Scramlin advises her clients to look beyond the mortgage payment. HOA dues are another recurring housing expense that needs to fit into your monthly budget.
Even a fee that seems manageable can add up. For example, $400 per month in HOA dues equals $4,800 per year, in addition to your mortgage principal and interest, property taxes, homeowners insurance, and other homeownership expenses.
HOA dues can also affect how much home you can afford or qualify to finance, so make sure your lender knows about the fee associated with the property you’re considering.
And remember that today’s dues aren’t necessarily permanent. When considering a home, leave room in your budget for the possibility that regular dues could increase or that you could face a special assessment later.
In a recent HomeLight survey of mortgage loan officers nationwide, one of their top recommendations for buyers was to plan for cash reserves after closing rather than putting every available dollar into the purchase. That cushion can be especially useful when homeownership costs change unexpectedly.
6. What happens if I don’t pay my HOA dues?
If you buy a home in a community with a mandatory HOA, paying the required dues isn’t optional. By purchasing the property, you take on the obligation to pay the association’s required fees.
Falling behind can have more serious consequences than simply losing access to the community pool or clubhouse. Depending on your HOA’s governing documents and state law, unpaid dues can lead to late fees, collection efforts, and a lien against your property. In some circumstances, an HOA may even be able to pursue foreclosure.
That’s another reason to look closely at HOA dues before buying. Make sure the current payment fits within your budget without squeezing you financially each month. Additionally, as Scramlin points out, consider the possibility of future increases or special assessments.
7. What HOA documents should I review before buying?
The monthly dues listed with a home can tell you what you’ll pay today. The HOA documents can tell you much more about what you’re signing up for.
Depending on what’s available and required in your state, important documents to request may include:
- Covenants, conditions, and restrictions (CC&Rs)
- Bylaws and community rules
- The current HOA budget
- Reserve fund information or a reserve study
- Recent board or association meeting minutes
- Information about current or pending special assessments
- Available financial statements
- HOA insurance information
- Information about pending litigation or major insurance claims
These documents can help you answer many of the questions we’ve covered in this guide: What do your dues pay for? Have they been increasing? Is a major project coming? Has the association been setting aside money for future repairs?
Scramlin reiterates that it’s best to request the HOA’s governing documents early rather than waiting until you’re close to closing.
She also notes that some associations may request information from a prospective buyer before closing. “Sometimes the association wants the buyer’s information ahead of time so they can approve them,” Scramlin says. That’s another reason to review the HOA documents early and ask your agent whether the association has any buyer application or approval requirements.
Your agent can help you determine which documents are available, when you can review them, and whether your purchase agreement provides a period for doing so.
For many buyers, a review of the rules may focus on much-talked-about topics like pets, parking, rentals, or paint colors. But Scramlin suggests you look at the association’s finances, too:
- A budget can show how dues are being spent.
- A reserve study may identify major repairs the association expects in the future.
- Meeting minutes can also reveal projects or assessments being discussed.
If something in the documents concerns you or you don’t understand the financial or legal implications, ask your real estate agent, lender, real estate attorney, or another appropriate professional for guidance before moving forward.
Look beyond the monthly HOA dues
HOA dues are only one part of the financial commitment you make when buying into an association.
Before making an offer, find out what the dues cover, how they’ve changed, whether special assessments are possible, and how well the association appears to be preparing for major expenses. Then factor those costs into your overall homebuying budget.
An experienced buyer’s agent can also help you ask the right questions and obtain available HOA information before you commit to a home.
If you’re still looking for an agent, HomeLight’s free Agent Match can connect you with top-performing buyer’s agents in your area based on your needs and location.
To learn more about homebuying, visit HomeLight’s Homebuyer Resource Center, where you can search for answers to all your homebuying questions.
Writer Summer Rylander contributed to the original draft of this post.
Header Image Source: (Ar. Md. Afnan Hossain/ Unsplash)
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