"If you don't have good management on-site or adequate [financial HOA reserves], the probability is, if something small happens, they will overlook it. It might be landscaping or a small crack, but if you overlook those things, greater problems will tend to occur," says Maurice Veissi, a regional vice president for the National Association of Realtors and the president of Veissi & Associates in Miami. "That will detract from your condo's value."
Take a good look at the condo association's budget, because this will help determine the services you will receive, and the special HOA assessments you will be charged. Assessments are generally mandatory and collected monthly, quarterly or annually. If you don't pay these fees, a HOA lien may be placed against your property. Find out what the HOA assessments cover and don't cover (for example, maintenance of common areas and trash collection), and see how these assessments compare with similar condo associations in your area. The condo budget should have a reserve fund for major expenditures. If not, condo owners may be hit with special HOA assessments for major repairs.
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