When HOA dues increase, I want to know what changed before recommending a listing price. A higher payment can reduce what a buyer can comfortably spend on the condo. It can also pay for necessary work, stronger reserves or services that would cost the owner separately elsewhere. Those details belong in the comparison.
My advice to sellers is to price against the alternatives buyers can purchase today. A neighbor’s sale before a material dues increase may still be useful, but it does not automatically support the same price now.
Buyers compare payments as well as prices
Consider this hypothetical comparison. Two condos are listed at the same price. One has monthly dues of $500 and the other $800. Assuming the other costs of owning are equal, the second condo requires another $300 a month, or $3,600 a year. Over five years that is $18,000 before any further change in dues.
That does not mean the second condo is worth exactly $18,000 less. The homes may have different amenities, insurance arrangements, maintenance responsibilities, reserves and physical condition. It means the buyer must find room for the extra payment, accept a different budget or choose another property.
That is why I look at the complete competing purchase, not just price per square foot. A beautifully presented condo can still lose a buyer to a less expensive monthly payment.
First, explain the increase accurately
I would establish whether the increase is adopted or merely proposed, when it starts, and whether it is a permanent dues change or a separate temporary assessment. I also want to know what caused it.
An insurance renewal, a reserve contribution and an operating shortfall are different explanations. If the increase is funding identified repairs, we should understand the project’s scope, funding and status. A documented plan gives buyers something they can evaluate; a vague assurance that everything is being handled does not.
I discussed this tension between current affordability and future HOA costs in the Daily Mail’s California HOA feature. For a seller, the job is to explain what is really happening with the association, then price and present the property to match.
How I would use comparable sales
I begin with the closest useful evidence: similar units in the same community, followed by genuinely competing properties elsewhere. I compare layout, condition, floor level, view, parking and outdoor space. Then I look at the association costs and what the buyer receives for them.
Verify the parking and storage arrangement before using it in that comparison, particularly when a second stall is separately rented or has been swapped with a neighbor.
The timing matters. Did a closed sale go under contract before the dues increase was announced? Did the seller pay an assessment or give a substantial concession? Is an active competing listing priced attractively but sitting unsold? Those facts affect what the comparison tells us.
A pending sale can show where buyers are acting, although its final price and terms may not yet be available. A closed sale is firmer evidence, but it reflects an earlier negotiation. I use both with today’s active competition rather than selecting only the highest historical sales.
If your dues include services the competing property’s owner pays separately, that deserves a clear explanation. If higher dues fund a better-supported maintenance plan, that may matter to a buyer. Neither point makes the monthly payment irrelevant; both improve the accuracy of the comparison.
Why two units in the same building can sell for different prices
A sale in your building is a useful starting point because the homes share an association. It is not automatically a match for your unit. I would separate the property’s features from the negotiated terms and the information buyers had when they agreed on a price.
Consider these two hypothetical sales in the same building, with similar square footage and the same current monthly dues:
- Unit A closed at $730,000 with a $10,000 seller credit. It has an upper-floor open view, an updated kitchen and two side-by-side parking spaces. Its contract was signed four months ago, before the association announced a dues increase.
- Unit B closed at $700,000 without a seller credit. It has a lower-floor courtyard outlook, an original kitchen and one parking space. Its contract was signed last month, after the increase was announced.
The recorded prices differ by $30,000. After subtracting only Unit A’s $10,000 credit, that comparison becomes $720,000 versus $700,000—a $20,000 difference. This isolates one concession; neither figure is the seller’s net proceeds after all selling costs.
That remaining difference does not tell us how much buyers paid for the view, kitchen or extra parking, or how much the dues announcement affected their offers. Several relevant facts differ between these sales. Assigning the whole gap to any one feature would turn a reasonable comparison into an adjustment the evidence does not support.
For your unit, I would look for additional sales and current alternatives that help separate those differences. I would also confirm the credit’s actual terms and the dates buyers negotiated, rather than relying only on the recorded closing dates. If a comparable already reflects buyers knowing about the higher dues, we should not automatically subtract a second allowance for the same change.
Lower the price or offer a credit?
I start by identifying the buyer’s actual obstacle. A lower price, a credit toward allowable closing costs and an association’s solution to an underlying problem serve different purposes.
Consider an illustrative negotiation at $650,000. A $10,000 price reduction gives a purchase price of $640,000. A $10,000 seller credit keeps the contract price at $650,000 but may help the buyer pay eligible costs. Before other differences in closing expenses, the seller gives up $10,000 either way. They are not interchangeable for the buyer’s cash requirement, monthly payment or appraisal.
The lender must confirm whether the proposed credit is usable under that buyer’s loan. Fannie Mae, for example, limits interested-party contributions and does not allow them to supply the borrower’s down payment or required reserves. Fannie Mae contribution rules.
I would not advertise a credit as though it permanently lowers the HOA payment. Nor would I assume the biggest advertised credit produces the strongest offer. The right structure is the one that addresses the buyer’s constraint while protecting your expected net proceeds.
What to change when the market responds
If buyers tour but repeatedly raise the same dues objection, I want to know whether they misunderstand what the payment includes or are choosing a better overall alternative. The first issue may call for clearer information. The second may call for a price or terms adjustment.
At Blum Realty Group, I use that feedback alongside the comparable sales and current competition. I do not advise my clients to keep defending an unsupported price while a listing loses its initial attention. We should know what would justify an adjustment and when we will review the result.
Questions sellers ask
Should I disclose an adopted dues increase if it has not started yet?
Yes. Provide the applicable notices and accurate information through the sale’s disclosure process. A buyer budgeting from an outdated dues figure is likely to raise the issue later, when it can disrupt the transaction.
Are low dues always easier to sell?
Low monthly costs can attract buyers, but the association’s condition and funding still matter. I would explain both the current payment and the known obligations behind it.
How do I know what price the market will support?
Start with a property-specific comparison of recent sales, current competition, condition, dues and concessions. That is the basis for my listing recommendation, not an automatic discount for crossing a particular HOA payment threshold.