All Forum Posts by: Avery Lee

I'm an agent in the area and I've seen this in a few communities in the area. There are going to be a few speed bumps if you sell. First one being if the community is FHA approved once the lender sees that the HOA reserves are low they can demand a 10% down payment which I've seen kill a few deals instantly. The other issue is that you will have to disclose the proposed assessment since you've received notice and it will be a term that needs to be negotiated which you might have to cover as part of the transaction depending on how negotiations go. Failure to disclose could result in a decent lawsuit.

I'd weigh out the best and worst scenarios for selling and holding and then determine the most likely course of events and move forward.

Hello Avery! This is a tricky question, I think it will depend on the numbers. If you bought it last year, it is possible that you would lose money on the sale (especially after closing costs). After the hike in the HOA fee and accounting for the shady fees that the HOA is slapping on to make some money, are you still cash flowing well? Additionally, is this an area/market you have faith in and is likely to appreciate? If it is a strong market and you are cash flowing it might be worth it to hold, especially if selling would lose you a bunch of money. However, if you are no longer cash flowing it is probably not an asset you want to hold on to. Take the one time hit on the sale rather than the recurring hit when the HOA continues to raise their fee and slap on other fees. I hope this is helpful!