I Was Afraid My House Wouldn't Sell for One Simple Reason

Recently, I listed my home for sale. 

I want to buy a new house, but I had to sell my existing property first. I was eager to sell because I wanted to get the money from the sale to use as a down payment so I could qualify for a mortgage when I find a new house I love. But, I was also concerned I wouldn't find a buyer for my property.

There's a very simple reason why I was concerned my house would get stuck on the market for a long time -- and why I feared finding an interested buyer would be a big challenge.

This issue can be a dealbreaker for many buyers

The biggest concern I had when listing my house was that the monthly homeowners association dues were extremely high.

When I bought the house, I knew there were HOA dues. But, in the 18 months that I lived in the property, the dues went up significantly after a change in management companies and some budget shortfalls.

By the time I was ready to sell the house, we were paying three different sets of HOA dues that collectively added up to more than $650 per month. That is a lot of money for a potential buyer to commit to paying -- especially since having such high dues would likely affect the amount they were allowed to borrow from a mortgage lender. Many lenders include HOA dues when determining if someone is within the allowable debt-to-income ratio to purchase a home. 

In addition to being concerned that buyers might shy away from committing to such huge monthly dues, I was also concerned about the recent spike in HOA dues.

I was worried that potential buyers would see the costs had gone up and fear the price would continue to rise, which would obviously be a major deterrent. I was also afraid a ton of my neighbors would soon be listing their properties because they might not want to make these substantial monthly payments either. 

Here's how I overcame the challenge 

The good news was, while there were justifiable reasons for my concern about the high dues, I was still able to sell my house pretty quickly. And I think the big reason for that is because I focused a lot on what the HOA dues buy.

Rather than trying to downplay the HOA fees or hope that buyers would not notice, I devoted an entire section in my MLS description to explaining that the monthly fee covered lawn service, high-speed internet, and even a $75 per month food credit at the local on-site restaurant. I also included some pictures of neighborhood amenities, like a swimming pool with a lazy river.

By showing people this money actually bought them items of value, I was able to put buyers at ease even when they saw the high HOA fees. While there was still some sticker shock, ultimately it wasn't as big of an obstacle as it could have been. Still, the lesson I learned is that HOA dues can increase a lot in a short time, so it's important to look at the neighborhood's history and the bylaws before moving into a neighborhood where you must pay a fee to live there.