HOA Budgeting & Finance
Questions to Ask About HOA Reserves Before Buying
Buying into an HOA or condo means inheriting its financial health, and the right questions before you buy can save you from a costly surprise. Sellers and listing agents won't always volunteer reserve problems — so you need to ask. Here are the key questions to ask about reserves before purchasing, organized by who to ask.
Why Asking Matters
An underfunded reserve fund becomes the new owner's problem through future special assessments and dues increases. But reserve weakness isn't always visible — a beautiful unit can sit in a financially troubled association. Asking the right questions surfaces problems that the listing won't mention, letting you negotiate, plan, or walk away with eyes open. This complements the broader reserve health checklist; here the focus is the specific questions to ask. (The true cost of underfunding.)
Questions to Ask the Association (or via the Seller)
1. "Can I see the current reserve study?" The most important request. A current reserve study reveals the community's true reserve picture. No study, or a stale one, is itself an answer.
2. "What is the percent funded?" The key health metric. Percent funded above ~70% is healthy; below ~30% is risky. If they don't know, that's telling.
3. "Have there been special assessments in the past few years?" A pattern of assessments signals chronic underfunding.
4. "Is any special assessment currently planned or being discussed?" A looming assessment is an immediate cost you'd inherit — and one sellers may not volunteer. (Assessments and home sales.)
5. "What major projects are coming in the next few years?" Roof, elevator, structural, or other big-ticket items due soon — and whether reserves cover them.
6. "What percent of dues goes to reserves?" A tiny reserve contribution suggests inadequate saving (reserve percent of budget).
7. "Are dues expected to increase?" Planned increases reveal the board's view of the financial picture.
8. "What's the owner delinquency rate?" High delinquency strains the budget and can affect financing.
9. (Older/coastal buildings) "Have structural or milestone inspections been done, and are the findings funded?" Critical for older and coastal condos — unfunded structural findings are a major risk.
Questions to Ask the Seller
10. "Have you paid any special assessments while owning here?" Their experience reveals the assessment history directly.
11. "Why are you selling?" Not always reserve-related, but occasionally sellers exit ahead of a known looming assessment.
12. "What do you pay in dues, and has it risen much?" Their history shows the trajectory.
Questions to Ask Yourself
13. "Have I actually read the documents, or just skimmed?" The resale/disclosure package, reserve study, budget, and meeting minutes reward careful reading.
14. "Does the visible condition match the financials?" Visible deferred maintenance despite claimed healthy reserves is a contradiction worth probing.
15. "Can I afford a special assessment if one comes?" Even with healthy reserves, understanding your exposure is prudent — especially in smaller communities or high-stakes buildings.
16. "For a layered community, have I checked both levels?" In master-planned communities, check both the sub-association and master reserves.
How to Use the Answers
The answers let you:
- Negotiate — a looming assessment or weak reserves can justify a lower price or seller credit
- Plan — budget for likely future costs
- Walk away — if the reserve picture is alarming and unaddressable
- Proceed with confidence — if the answers reveal a well-funded, well-run association
The goal isn't to avoid every HOA with imperfect reserves — it's to know what you're buying and price it accordingly. (More red flags to watch.)
The Bottom Line
Before buying into an HOA, ask the key reserve questions — see the reserve study, learn the percent funded, ask about past and planned special assessments, upcoming major projects, the reserve contribution, and (for older/coastal buildings) structural inspection status. Ask the seller about their assessment experience, and ask yourself whether you've truly read the documents and can absorb a potential assessment. The buyers who ask these questions buy with open eyes — and avoid inheriting an underfunding surprise. For the full pre-purchase review, see Buying a Condo: A Reserve Health Checklist.