What Home Buyers Should Know About HOA Fees
By The McGrath Team Realtors
When you’re searching for a home—especially in the St. Louis or St. Charles metro areas—you’ll often come across properties in communities with a Homeowners Association (HOA). While HOAs can offer great benefits and sometimes amenities, it’s important to fully understand what those monthly or annual fees cover before you make an offer.
Here’s what every home buyer should know:
💡 What Are HOA Fees?
HOA fees are dues paid to the neighborhood association that helps maintain common ground, shares spaces and amenities. These can range anywhere from $100 to over $1,000 a month or only be yearly fees depending on the community, location, and services provided.
🏘️ What Do HOA Fees Typically Cover?
This varies by community, but HOA fees often include:
Lawn care and landscaping of common areas
Snow removal and street maintenance
Trash and recycling services
Amenities like a clubhouse, pool, playgrounds, or fitness center
Exterior building maintenance (in condos or townhomes)
Monthly fees can cover lawn and landscaping specific to the dwelling
Insurance for shared structures or ground.
Always ask for a copy of the HOA financials and rules (also called CC&Rs—Covenants, Conditions & Restrictions) before you finalize your purchase if the HOA dues are monthly dues. If the dues are yearly it can be a good idea to review the CC&Rs.
🧾 Will HOA Fees Go Up?
Yes, HOA fees can increase over time—and how often they do depends entirely on the specific HOA. In our area, we see the most frequent increases in condo, villa and townhome communities, especially those with monthly fees that cover exterior maintenance like roofs and siding.
One major reason for increases or special assessments (extra charges outside of the regular dues) is storm damage. With the number of storms we’ve had locally, many HOAs are facing rising insurance deductibles or are dealing with aging roofs that aren’t covered by insurance. If the HOA doesn’t have enough in reserves, those costs often get passed along to the homeowners.
We’ve also seen special assessments for safety-related upgrades, like replacing outdated aluminum wiring with copper—something that can affect the HOA’s ability to maintain insurance coverage. Another common expense in our area? Repairs and updates to subdivision pools, which can result in one-time fees or annual increases.
The seller’s disclosure form here in Missouri does ask about the HOA, including any recent or proposed fee increases. When we review that together, we’ll help you decide whether to make your offer contingent on reviewing the HOA’s financials and governing documents. For condos, villas, and townhomes in particular, we always recommend reviewing the HOA’s budget and reserve fund. A well-managed HOA should have enough in reserves to cover major repairs—without blindsiding owners with surprise fees.
🧠 Things to Ask Before Buying in an HOA:
How much are the current monthly/annual dues?
What services are included?
How often have fees increased in the last 5 years?
Are there any pending or recent special assessments?
Are rentals allowed? (Important if you're buying an investment property)
Can I make exterior changes to the home?
Are there restrictions on parking, pets, or guests?
🔍 Our Advice as Local Experts:
We've seen buyers fall in love with a home—only to be caught off guard by unexpected HOA rules or fees. That’s why our team always helps clients do a deep dive into the HOA documents before closing. We want you to feel confident not just about the home—but about the community and its costs, too.
If you’re thinking about buying a home and aren’t sure how to navigate HOA fees, let’s talk. We’re here to guide you through it, every step of the way.
