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Depending on what is covered, particularly if you are buying a condo, the fee could be nearly as high as your mortgage payment.. Bilgi says potential buyers need to carefully study what the HOA fee includes and compare that to what they would pay for similar services outside of an HOA.
Assessment fees are payments the homeowners' association (HOA) collects from owners to cover expenses the HOA is responsible for, but that aren't covered in the regular monthly fees. Take lawn care, for example. At a condominium, HOA fees typically cover the cost of a landscape service to weed, feed and mow the grass. But suppose a tree care service is called in to remove a dying tree. The HOA board of directors may vote to impose an assessment fee to pay for that expense.