What are home assessment fees?

[STI Jaguar]

Lets say that the condo assessment fees is $400. What does this mean?

Is this the amount that you would have to pay on top of your mortgage every month?

[Marquoz]

Originally Posted by STI Jaguar

Lets say that the condo assessment fees is $400. What does this mean?

Is this the amount that you would have to pay on top of your mortgage every month?

Are those the condo assossiation fees? If so, then yes you do. It is usually for the upkeep of the condo. Condos also sometimes have special assessments that are for a limited time for large repairs. So not sure which one the 400$ fee is, if it's a monthly fee, or a limited time fee until they pay off a repair bill.

[STI Jaguar]

Thanks, I've never owned a home so I am only getting used to the terms. I thought that it was interesting and I need to beware of the hidden costs beyond just the selling price. Some condos especially in the downtown area have assessment fees as high as $900, and some others a bit further away are $250. That is a large discrepancy assuming that both condos are of the same price.

[Marquoz]

Originally Posted by STI Jaguar

Thanks, I've never owned a home so I am only getting used to the terms. I thought that it was interesting and I need to beware of the hidden costs beyond just the selling price. Some condos especially in the downtown area have assessment fees as high as $900, and some others a bit further away are $250. That is a large discrepancy assuming that both condos are of the same price.

If they are very high, ask the realtor if they can get ahold of the condo association and get a general break down of where the money goes per month. That will give you an idea if it's worth paying an exorbiant fee for additional services. I currently pay 180$ a month in condo fees, but I don't cut the lawn, the parking lot is always very clean, if somebody parks in my spot it is taken care of and the car is moved/towed, the pool is kept very clean, the locked gates are fixed immediately if there is a problem. So to me, the extra expense is more then worth the price.

[sssick]

Usually the fees are called "assossiation" fees. These are paid monthly.

The "special assessment" fee is in case of a large repair that there is no money in the budget for. The assossiation is allowed by law to charge many thousands of dollars to each homeowner in the case of an emergency or unplanned maintenence. (Hurricane blows roof off, or flood, etc.)

You also have to watch out for fees that they throw out at you during closing. My first property the condo caught me for over $1500 that I didn't plan for.

You need to find out exactly what they mean with those fees you are asking about. $900 a month????? Is that in a Manhattan builing on Park avenue? Does it have a doorman, elevator man?

[Beta Man]

I'd avoid condos, but that's just me. If you like the downtown living though, there's not many ways around it..... Condos certainly do have their perks too.....

I had a condo in Cincinnati (Hyde Park area for those familiar) and of the $575 monthly association fees, it was for the upkeep of the work-out facilities, Valet, doorman/security, and I'm sure some other things.... but since I was one the 18th floor, there was no "yard maintenance" to speak of...

it's a big hustle if you ask me!!!!! It's basically like "BUYING" an apartment.... you pay for it, but rent it to yourself!!!!!

Edit.... A buddy of mine bought a Condo here in CLEVELAND.... which the housing market sucks.... but it's got a lake view, and their Association fees are $800/mo. so $900 for anywhere in NY wouldn't surprise me.

[STI Jaguar]

Yes, it is in Chicago. Almost as expensive as NYC. The $800 condo probably has a doorman as well as a gym and rooftop pool. But that extra $500 is nowhere near worth the cost.