Expert: Jessica Bryan - 7/31/2006

Question
Hi,

We are just beginning our house hunting search and are new to the process.  My question concerns the financial considerations listed under "Property Details" of a home.  I understand that when buying a home you pay taxes on that home, but what does it mean when an "assessments" amount is listed?  Why would a home have an assessment on it?

Thank you!

Answer
Dear Jay;
Many communities these days have homeowners associations and they assess each homeowner for dues, repairs (if there are common area buildings or structures, private roads that might require repair, and common areas that might require upkeep, replanting or special attention that is not covered in the monthly dues.)  This requires special assessments.  Let's take for example a home that might be in a community that was hit by a storm, tornado or hurricane.  With trees down and general debris in the roads and common areas, it might require additional funds to take care of restoring the community to its previous condition.  An assessment would be levied upon each homeowner. If someone decided to sell their home before the assessment was paid it would need to be listed under assessments.  Usually, in a listing, when and if there are assessments there is also an explanation of the purpose of the assessment and if it is a monthly assessment (as in a homeowner's association) or a special one-time assessment for the unexpected repairs.  When you begin to look at homes you will notice that neighborhood amenities  such as parks or pools that are within the neighborhood are very desirable.  Many neighborhoods that don't have those amenities decide to add them and then each home is assessed.  Homeowners are then faced with maintenance assessments as well, so ask lots of questions before buying any home within a neighborhood setting.
Happy house-hunting,
Jessica Bryan