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There’s no question that the housing market has been challenging for both homebuyers and sellers in recent years. High mortgage rates, soaring home prices, and low inventory have made the road to homeownership tricky for buyers—but for sellers, the story has been all about concessions.
The biggest of which are price cuts, which “have emerged as a key trend in this spring’s housing market,” according to a recent Realtor.com® report.
It’s no surprise then that the report notes that most sellers are opting to delist their home, rather than cut into their profits.
But for sellers of condos or townhouses, there are other avenues to sweeten the transaction deal—like offering to cover one of the biggest unforeseen costs of living in a homeowners association.
What is a special assessment—and why is it becoming more common
Special assessments are a one-time charge levied by an HOA for expenses such as major repairs, unexpected structural issues, or code-compliance upgrades.
Common triggers include roof restoration, building improvements, or weather-related repairs.
Geoff Braboy, a South Florida luxury real estate agent at Compass, explains that a special assessment is essentially a fee condo owners must pay when the association needs to fund a major repair or improvement—and the board or owners decide to impose the charge because they either lack sufficient reserves or choose not to deplete existing reserve funds.
“Across the country, these are becoming more common as condominiums and townhome communities age, routine upkeep is delayed, and extreme weather events strike with increasing frequency,” says Stacie Staub, CEO and co-founder of real estate brokerage firm West + Main Homes.
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Who pays the special assessment when a unit is sold?
Legally, responsibility depends on several factors such as when the special assessment was approved, when it is due, and what the purchase agreement outlines.
Generally, if the special assessment is decided before the buyer owns the home, the seller is responsible for paying it. However, the special assessment might not be officially decided on before the buyer becomes the owner. Even if the HOA is discussing the matter, if it has voted on the assessment before the time of sale, once the buyer owns the unit, the buyer must pay—even though the issue existed before the buyer moved in.
However, it’s important to note that in many cases, it’s negotiable.
Braboy says that if a seller wants to be competitive, especially at a luxury price range, covering the assessment can absolutely tip the scales.
“I have a listing right now in Boca Raton that’s been on the market for a little over 200 days at around $2.4 million, and the seller offered to cover the entire special assessment—well over $100,000—to help sweeten the deal for the right buyer,” he says.
Braboy adds that buyers are more cautious in this market, and assessments can be a red flag.
“I often advise my seller clients that, if they want a clean transaction and to generate more interest, remove the assessment objection before it becomes one. Cover the assessment upfront, and then market that as a benefit,” he says.
On the flip side, savvy buyers might see an opportunity to negotiate.
“Either way, it becomes a negotiation lever—and one experienced agents can use to keep deals moving forward,” he adds.
Yet, this can also become a sticking point in negotiations as buyers might be asked to assume that potential future cost. Many will push back without some form of seller concession, says Staub.
She adds that when the dollar amount ranges from $10,000 to $30,000, we see sellers use a mix of creative strategies, including the following:
- Paying the full amount of the assessment at closing to remove uncertainty and buyer hesitation.
- Offering a seller credit to help the buyer cover the cost post-closing.
- Adjusting the purchase price to reflect the financial burden.
Negotiating strategies for sellers
Disclose early
Staub recommends getting ahead of the concern by disclosing the assessment as soon as possible, ideally in the listing description or during initial buyer inquiries.
“Buyers value transparency and are more likely to engage seriously when there are no surprises,” she says.
Messaging is key
Staub adds that if you’re planning to pay the full assessment at closing, frame it as a benefit.
“Clarifying that your home comes with no hidden HOA costs helps position the property as turnkey and worry-free,” she notes.
Offer flexibility
If paying off the special assessment isn’t feasible, offer an alternative. For instance, you could offer to cover the first 12 months of payments or structure a seller credit to offset the cost, she says.
“Flexibility often keeps deals moving forward, especially in markets where buyers are being more mindful of spending,” Staub adds.
Just pay it
Jeremy Smith, a real estate agent with Engel & Völkers Atlanta, also offers another option: Don’t panic—leverage it.
“In a condo market where inventory is climbing, this can absolutely help your listing stand out. Price it right, pay off the assessment, and boom—you’re at the top of the buyer’s list,” he says.
Negotiating strategies for buyers
Ask better questions, sooner
According to Staub, don’t stop at asking whether there’s a special assessment: Dig deeper by asking the seller whether the HOA has discussed, proposed, or voted on an assessment recently.
“Early conversations with your agent and even asking for a review of HOA minutes can reveal what’s coming down the pipeline even if it hasn’t been levied yet,” she says.
Lock terms into the contract
She also stresses that verbal assurances are not enough. If you agree to take on an assessment, confirm that the HOA allows it and ensure the arrangement is documented in the purchase agreement.
“Crystal-clear clarity protects both sides and avoids surprises at closing,” Staub says.
Think beyond the numbers
Finally, she notes that if the assessment funds something meaningful, like a new roof, updated fire safety systems, or exterior repairs, it could boost property value over time.
“In some cases, absorbing part of that cost may be a worthwhile investment for peace of mind in the long run,” she adds.