Hello, dear readers, and welcome to the Real Estate Whisperer, where I tackle the ins and outs of 92101 living with a pinch of humor and a dash of reality. Today’s hot topic? The ever-dreaded HOA assessment increases. Yes, I can almost hear the collective groans from here. But before we hoist the pitchforks and light the torches, let’s dive a little deeper into what’s really going on behind those notices that make our wallets tremble.

Now, I’ve been around the block a few times—43 years in real estate, to be exact and I’ve sold over 7300 houses, an average of 170 houses per year—and I’ve heard all manner of tales about HOA dues, from the boastful (“My dues haven’t gone up in 5 years!”) to the downright terrifying (“Our special assessment was how much?!”). But here’s the rub: steady dues might sound great, but they’re often the ominous calm before a financial storm.

You see, our HOA Boards aren’t just sitting atop a pile of our hard-earned cash, cackling maniacally. They’re actually quite busy bees, juggling the ever-increasing costs of water, electricity, insurance, and wages—remember when minimum wage in California was a mere $8 an hour? Feels like a lifetime ago, doesn’t it? Now, we’re looking at $16, and that’s just the tip of the iceberg.

So, what’s the magic number for a healthy HOA reserve, you ask? Experts suggest somewhere between 35% to 70%. Anything less should have us all biting our nails. Without a decent cushion, our communities can’t handle the unexpected twists and turns of homeownership, from emergency repairs to the normal wear and tear that comes with time.

And let’s not even talk about those special assessments that can pop up like unwelcome guests, demanding anywhere from $25,000 to $125,000 per unit—or more. It’s enough to make your bank account weep, especially for our neighbors on fixed incomes or just starting their journeys.

Now, don’t get me wrong, I’m not a fan of shelling out more each month any more than the next person. But between you and me, I’d much rather stomach a small, steady increase than get blindsided by a financial heavyweight.

As our beloved communities age, so do their needs. Everything from the paint on our walls to the pipes under our feet calls for attention and, yes, money. Maintenance is the name of the game if we want to keep our little slices of paradise, well, paradisiacal. Just like we do as we age it cost more to maintain

And for those of you thinking about selling, take heed: underfunded reserves are about as appealing to lenders as a termite infestation. It could mean the difference between a “Sold!” sign and a “Sorry, try again.”

So, what’s the moral of our story today? It’s time to give our HOA Boards a bit of grace. They’re making the tough calls to protect our homes and our investments. And perhaps, just perhaps, it’s better to face a small increase today than a financial tsunami tomorrow.

Until next time, keep those community spirits high and those assessments in perspective. After all, it’s not just about the numbers; it’s about ensuring our homes remain the havens they’re meant to be.