Thanks to Ryan Lundquist for providing these YTD stats below. More on Ryan below here (scroll down). He and his knowledge are such a treasure. You can visit his own site (see site below the grid). Also read on for my HOA related news and a link to Ryan’s recent HOA rant which dove tails into todays subject of HOA’s.

I am a  huge fan of Ryan Lundquist who is a well known appraiser in the Sacramento region but he is so much more than just an appraiser. His view of real estate in our area, indeed the entire state and US, is awe inspiring. Smart, smart, smart. You can read his stats and opinions and info on condo and HOA’s. Believe me, his newsletter is ALWAYS worth reading. Click here to read that https://sacramentoappraisalblog.com/2026/09/29/hes-a-10-but-his-monthly-hoa-fee-is-huge/?utm_source=rss&utm_medium=rss&utm_campaign=hes-a-10-but-his-monthly-hoa-fee-is-huge

HOA’s and what you need to know before you buy: 

I went to a class last week hosted by Remax, specifically on the topic of HOA’s (Home Owner Associations). In an attempt to put an hour of information in a nutshell, I’ve given you bulleted lists below here. From a Realtor and buyer standpoint, this is extremely important information. HOA’s usually, but not always,  work through a management company that is required to provide a  huge stack of information that you and I are supposed to read through and understand during your investigation contingency window. I don’t know about you, but I’m not a trained HOA expert. What we are looking for mainly, so that you know exactly what you are buying into is:

• Rules and regulations of living in the HOA.
• Current financials (reserves, delinquent home owners, planned expenses).
• Minutes from board meetings, at least a year back is best, so you can learn about new issues and ongoing problems.
• Master insurance policy and understanding what it covers and what it doesn’t. You should also have our own.
• Pending, planned or expected litigation.
• Pending, planned or expected dues increases .
• Pending, planned or expected assessments (and if the subject homeowner owes any).

Points made during the class:

• Many HOA’s keep dues low while failing to charge enough to cover reserves.
• Was an HOA reserve study done? They should have one in the stack.
• Does the HOA have enough reserves? Minimum of 50% is recommended. If not, upcoming big expenses like roofs, roads, upgrades to the clubhouse and unforeseen issues can become the each owners problem as an assessment can happen (cost of the repair or upgrade divided by how many units are in the HOA).
• If an HOA reserve is underfunded, future buyers may not be able to get a loan and current owners may not be able to refinance. Currently lenders are requiring 50% of recommended reserves being funded in order for units to be loanable.
• Deferred maintenance exists in approximately 35% of HOA’s.
• Have balcony inspections been done? They were mandated in 2025 and need to be redone every few years. If these aren’t done as required, board members can be sued personally.

Solutions:

There is a company by the name of HOA Snapshot. For a fee of $149, in a 2 day turnaround, they will review the entire huge stack of documents, then via AI they will create a summary. Knowing AI is not perfect, a human then reviews it all to make sure you have the best understanding possible. Point taken – always cycle through HOA Snapshot for clarity and transparency of what you are getting yourself aligned with. I would write the Snapshot fee of $149 into the purchase contract as a seller expense.

That’s it for today. Let me know if I can help you in any way.

NOT written by or with the assistance of AI.