…fees, fees and yes more fees when you buy or sell real estate. I just got had a closing on the Gilbert Flip Home yesterday and I was shocked that the HOA (Home Owner’s Association) is committing highway robbery by charging me $917.29!
That Gilbert home was purchased in foreclosure, which means all the liens were wiped clean, including the unpaid HOA fees. Since these HOA’s are struggling with a large number of delinquent accounts due to foreclosures, they are trying to recoup their losses by increasing the transfer fees and disclosure fees when you buy or sell the home.
The result?.. what would normally cost $300-$400 to sell a propery is now more than double. I see this as a trend in 2009 with HOA’s in the Phoenix Metro Area. I guess this gives me (and you) more insight into putting more emphasis on whom pays the HOA transfer fee when negotiating a real estate contract.
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That’s nothing. I live in Lincoln Place in Scottsdale, an HOA which is charging .3% of the sales price of a home which they collect at close of escrow. This is IN ADDITION to the normal $300 transfer fee for the property manager! That’s $3,000 to $4,000 even in these times (it use to be $4,500 but house prices have fallen). More importantly, it is not recorded and was never voted on. The Board justifies it as a means to avoid raising owner dues.
I am looking to buy a home in the phoenix area but i will not buy a home with hoa fees. The hoa system has become nothing but a big rip off there are homes with no hoa fees buy them let the hoa system die a sad death. someone is making a lot of money of the hoa system and its not for cutting grass.