That Smaller Home Has a Big HOA Fee. Does the Math Still Work?

That Smaller Home Has a Big HOA Fee. Does the Math Still Work?

You’re ready to trade the extra bedrooms, pool chores, and weekend yard work for something easier. Then you spot the monthly fee.

$850. Every month.

Suddenly, that smaller home doesn’t feel like such a small expense.

Before you cross it off your list, look at what that fee replaces. And before you fall in love with the clubhouse, look at what you’ll still have to pay.

A smaller home with a high association fee can still make financial sense. The key is whether the total cost fits your budget, the fee covers useful services, and the association has a sound plan for future repairs.

The asking price alone won’t tell you that.

What Are You Getting for That Fee?

Across Broward County, two communities with the same monthly fee can cover very different things.

Depending on the community, dues may help pay for:

• Lawn care and landscaping

• A community pool and shared spaces

• Water, cable, or internet

• Security or gate services

• Building insurance

• Certain exterior repairs

• Money set aside for future work

Ask for a written list. “Maintenance included” leaves too much room for guessing.

Also, find out whether the property belongs to a homeowners association or a condominium association. A home called a “villa” could have either setup. The documents help explain who handles repairs and who pays.

Insurance needs its own review. Condo owners still need their own coverage, even when the association insures the building. Have an insurance agent explain the gaps and provide a quote before you commit.

Compare the Whole Monthly Budget

Your current house may have no HOA fee. That doesn’t mean it has no upkeep costs.

Pull out your bills. Include insurance, taxes, lawn care, pool service, utilities, and money for repairs. Divide yearly costs by 12.

Then do the same for the smaller home.

Here’s a simple example for two homes owned without a mortgage. These are made-up numbers, not Broward averages or insurance quotes.

In this example, the home with the $850 fee costs $150 less per month, or $1,800 less per year.

That may feel surprising. Some of the bills have simply moved into the association payment.

Notice that the condo owner still sets money aside for repairs. Appliances, air conditioning, and other items may remain the owner’s job.

If either home has a mortgage, add principal and interest. Count taxes and insurance only once if they’re already part of your payment.

Three Things That Can Change the Math

1. Extra Charges Beyond Regular Dues

A special assessment is an extra bill from the association. It may help cover major repairs or another expense that regular dues and savings cannot fully cover.

A $12,000 assessment paid over two years adds $500 a month during that time. That would more than erase the savings in our example.

Ask about approved assessments, major projects being discussed, and who would owe any remaining payments after the sale. Have the purchase contract address those payments clearly.

2. The Association’s Savings and Repair Plans

Reserves are funds the association sets aside for major work.

A low monthly fee can look great until you learn that needed repairs have been put off. A higher fee alone doesn’t prove the community has enough saved, either.

Request the current budget, recent financial reports, reserve information, and meeting minutes. For a condo, also review applicable building inspection reports and the Structural Integrity Reserve Study, which helps identify certain major repair needs and how to fund them. Florida DBPR provides guidance on these records and requirements.

You want to understand what work is coming and how the association plans to pay for it.

3. Your Future Property Taxes

Don’t build your budget around the seller’s tax bill.

Your exemptions and tax benefits may differ. Eligible Florida homeowners may be able to transfer some of their Save Our Homes benefit through portability, but that takes an application and depends on their situation. Ask the county property appraiser for help estimating your taxes.

A smaller home does not automatically bring a smaller tax bill.

Include What It Costs to Move

Selling costs, purchase closing costs, moving, and updates all belong in the calculation.

If the move saves $150 a month, that’s $9,000 over five years before costs change. Compare that with what you’ll spend to make the move.

Also estimate how much cash you’ll keep after selling your current home, paying off any loan, buying the next property, and covering those expenses.

That money may be a big part of your reason for downsizing. You deserve a clear estimate before making plans for it.

Leave Yourself Some Breathing Room

Association fees can rise.

Try a simple budget check: if an $850 fee became $1,020, would you still feel comfortable? That’s a 20% increase used to test your budget, not a prediction.

If the home works only when every expense stays exactly the same, the budget may be too tight.

Your time has value, too. Fewer chores, easier travel, and less space to clean may be worth paying for. Just know what that freedom will cost.

The goal is a home that feels easier to live in and easier to afford.

Let’s See How Your Next Home Fits Your Life

At The Chriz Tokar Team, we help you put your current home and your next home side by side, so you can see what the move could mean for your budget and your daily life.

We can prepare an estimated seller net sheet, compare condos, villas, and smaller houses, help gather association documents, and flag questions for the association, insurance agent, lender, or attorney. We’ll help you look beyond the clubhouse to the costs and responsibilities that come with the keys.

Whether you’re leaving a long-time Plantation home or considering a simpler place elsewhere in Broward, we’ll help you work through the details before you make the leap.

It's all part of the TLC - The Tokar Level of Care.

Have a smaller home in mind with a fee that makes you pause? Let’s put the numbers on paper and see how it fits the life you want.

For More Information contact:

Chriz Tokar and Bruce Field – 954-600-7427

The Chriz Tokar Team

RE/MAX Advance Realty

Common Questions About Downsizing and HOA Fees

Is downsizing worth it if the HOA fee is high?

It can be. Compare the full cost of both homes, including taxes, insurance, dues, maintenance, and any mortgage payment. Then consider repair risks, cash left after the move, and the time you’ll get back.

Does an HOA fee cover all home repairs?

No. Coverage depends on the community’s documents. You may still be responsible for air conditioning, appliances, interior repairs, and other items.

Can I get a special assessment even with high monthly dues?

Yes. High dues don’t guarantee there will be no extra charges. Review the association’s finances, repair plans, and assessment notices before buying.

Will a smaller Florida home automatically have lower property taxes?

No. The property’s assessment, your exemptions, and any eligible portability benefit affect the bill. Get an estimate for the home you plan to buy.

What should I review before buying a home with association fees?

Start with the budget, financial reports, reserves, insurance information, meeting minutes, and assessment notices. For condos, add applicable inspection reports and reserve studies. Confirm all dues, including any separate master association fee.