HOA determines the hard costs of things like utilities, landscaping, pool maintenance, administrative costs like attorney fees, billing and postage plus any other required overhead.
HOA fees are based on a variety of things. The management association bidding to run an HOA determines the hard costs of things like utilities, landscaping, pool maintenance, administrative costs like attorney fees, billing and postage plus any other required overhead. They then add on their profit margin for servicing the account. Bryan For condo's: Take the total budgeted income amount (for assessments) for the year and divide by 12 (if you are on a 12-month calendar year, divide by 4 if quarterly) - then divide by the % of ownership for each individual unit to get that owners assessment amount. Be sure the % of ownership equals 100% to ensure you have the correct #'s. For fee simple HOA's divide the total budgeted amount by 12 (12-month calendar year; 4 if quarterly), then divide by the number of units, each unit would pay the same amount. B The % of ownership isn't always necessarily based on square footage. property tax is based on value. Condo and HOA fees are based on a budget that includes the maintenance of the common grounds, management, utilities and insurance of what the condo assoc or HOA owns and the other items they pay for, such as water, cable, etc. The other items vary per association. Other subdivision charge monthly, but they cover exterior maintenance of the home and yards. HOA fees can be a good thing, if there is coverage for items to make the subdivision more desirable, thereby increasing the likelihood of the sale of your home in the future probable. BREAKING DOWN 'Homeowners Association Fee-HOA Fee'. Condo owners almost always pay HOA fees to cover the costs of maintaining the condo building's common areas such as lobbies, patios, landscaping, swimming pools and elevators. If owners of property belonging to a homeowners' association do not pay the required monthly (sometimes annual) fees as well as any special assessments, the homeowners' association can foreclose on the delinquent homeowner. For fee simple HOA's divide the total budgeted amount by 12 (12-month calendar year; 4 if quarterly), then divide by the number of units, each unit would pay the same amount. B. The % of ownership isn't always necessarily based on square footage. Be sure the % of ownership equals 100% to ensure you have the correct #'s. For fee simple HOA's divide the total budgeted amount by 12 (12-month calendar year; 4 if quarterly), then divide by the number of units, each unit would pay the same amount. B To find your total PITI plus homeowners association dues, add up all of the factors. If you add up $3,017.97 mortgage payment, a $390.79 tax payment, a $179.17 condo insurance payment, and a $425 mortgage insurance payment, you will find a total PITI payment of $4,012.93. Taxes. If you live in a community where your taxes are set directly based on your property's sales price, simply multiply your purchase price by your local tax rate and divide by 12 to find your monthly tax payment. The local rate is available from your county assessor. Still, before you commit to the purchase of a condo or townhouse in a managed development it's important to understand how HOA fees are calculated, and what you should expect to get in return for your money.  Why knowing your HOA matters. Of course, the money in the HOA's coffers belongs to those who own units in the condo, and how that money is managed should be just as important to a buyer as the asking price. You see a lot of great deals on condos right now, Winston says.  Hi Janice, I'm in NJ and our HOA fees here are monthly. The monthly HOA charge should be included in the listing. If you don't see it, ask a local Realtor and I'm sure they will be able to help you. If it's a for sale by owner you can ask the owner of the condo or the condo association/management company. Other subdivision charge monthly, but they cover exterior maintenance of the home and yards. HOA fees can be a good thing, if there is coverage for items to make the subdivision more desirable, thereby increasing the likelihood of the sale of your home in the future probable. DEFINITION of 'Homeowners Association Fee-HOA Fee'. An amount of money that must be paid monthly by owners of certain types of residential property to an organization that assists with maintaining and improving that property and others in the same group. If owners of property belonging to a homeowners' association do not pay the required monthly (sometimes annual) fees as well as any special assessments, the homeowners' association can foreclose on the delinquent homeowner.
http://www.answers.com/Q/How_are_HOA_fees_calculated http://www.condoassociation.com/blog/tabid/19257/bid/11830/How-do-you-calculate-HOA-or-condo-association-fees.aspx http://www.trulia.com/voices/popular/q_How+To+Find+Hoa+Fees/ http://www.investopedia.com/terms/h/homeowners-association-fee-hoa.asp http://www.condoassociation.com/blog/tabid/19257/bid/11830/How-do-you-calculate-HOA-or-condo-association-fees.aspx http://homeguides.sfgate.com/calculate-piti-hoa-fees-89429.html http://www.mortgagecalculator.org/helpful-advice/hoa-fees.php http://www.bankrate.com/finance/real-estate/check-out-hoa-finances-before-buying-condo-1.aspx http://www.trulia.com/voices/popular/q_How+To+Find+Hoa+Fees/ http://www.investopedia.com/terms/h/homeowners-association-fee-hoa.asp
how to determine hoa fees