You’re ready to dive into San Francisco’s condo market, and the first step on your to-do list is getting preapproved for a loan. You’ve factored in your potential mortgage and property taxes, but your lender throws in another key piece of the puzzle—homeowners association (HOA) dues.
That’s where your real estate agent comes in. A good agent can give you a ballpark estimate of typical HOA dues based on the neighborhoods and types of buildings you’re considering. This gives you a much clearer picture of your monthly costs and helps you to be a smart shopper.
HOA dues are monthly fees that go toward shared expenses like water, trash, common area utilities, building insurance, property maintenance and amenities like a gym or doorman. The amount you’ll pay depends on the size of the building and the level of services and amenities it offers. These dues have crept upward over the past few years; blame it on rising utility costs and more people working from home. Insurance premiums for buildings have also gone up, which gets passed down in the form of higher monthly dues.
If you have your heart set on a smaller, self-managed building, the HOA dues will most likely be in the $400-$600 range. However, if you’re aiming to move into a larger building with a door person, gym, and property management, dues will be in the $800-$1,000+.
Once you know your HOA budget, you can focus your condo search and skip listings with dues outside your range.