Nobody likes surprises late in the game
Condominium and HOA transactions are more complicated than freestanding home sales and purchases. They can also be riskier, and buyers face a lot of unknown. It is nearly impossible for buyers to do a home inspection for an entire building or neighborhood. It isn't easy to tell how well roofs, clubhouses, balconies, parking structures, HVAC and paving have been maintained. It also isn't easy to tell whether the association has invested enough in reserve fund savings over the years to pay for expected capital repairs and replacements.
What do they have to worry about? Expensive surprises that result in unexpected special assessments! These are mandatory extra fees that HOAs and condos charge homeowners when they don't have enough saved to pay for necessary things.
More than 80% of HOAs have special assessments
Home buyers are right to be worried. Special assessments are fairly common, and are usually needed by most HOAs every five years or so to fund larger maintenance items. It is no secret that buildings and communities need maintenance, and that homeowners are reluctant to pay more to their HOA than is absolutely necessary to keep the lights on. The average special assessment costs more than $5,000!
Feesible provides inexpensive peace of mind. It is like a home warranty for a buyer's wallet
When HOA buyers are close to the finish line you never want them to be concerned about the risks that might be hiding in the community's walls or in its financial statements. California buyers can now remove worries about bad surprises in their HOAs and condos with simple, inexpensive insurance protection through Feesible. The unique coverage reimburses homeowners for special assessments due to all sorts of needs and projects, from roof replacements, pool renovations, paving projects, balcony repairs, painting, etc. You name it! More than 90% of special assessments are covered, up to $25,000. What assessments aren't covered? Check our our detail here
With HOA homes, buyers are buying a home AND a share of the community's assets and liabilities
Hopefully those assets are greater than those liabilities, but it is usually hard to tell and might not be known for years. Homebuyers are often fearful, risk averse, and usually aren't very confident about what they are getting into. Don't let HOA worries bog you or your deals down. Let Feesible take the risk. Your deals will get done with fewer headaches, and buyers will thank you!