Purpose: Connect mismanagement to resale pain.
The one-line truth
High monthly fees = lower sale price.
Every extra $100/month in condo fees can cut what a typical buyer can borrow by roughly $15k–$21k (25-yr mortgage, 4–6% rates). Fewer qualified buyers → smaller offers.
Buyer math (the part that hurts)
- +$100/mo fees ≈ $15k–$21k less price room
- +$250/mo fees ≈ $38k–$52k less price room
- +$500/mo fees ≈ $77k–$104k less price room
(Range reflects interest rates. The bank cares about monthly carrying cost, not your opinion of value.)
Example
Two similar units:
- Unit A fees: $600/mo
- Unit B fees: $1,000/mo
Difference: $400/mo → buyer capacity shrinks by ~$60k–$84k.
Expect lower bids on B—even if the wallpaper is nicer.
Why fees climb (mismanagement edition)
- No competitive bidding → inflated contracts, automatic renewals
- Change-order chaos → loose scopes, mid-project surprises, budget blowouts.
- Over-lawyering → using counsel where process/communication would do.
- Deferred maintenance → “savings” today become emergency premiums tomorrow.
- Opaque decisions → owners can’t catch bad ideas early, so fixes cost more later.
What spooks buyers (red flags in a status certificate)
- Frequent special assessments or talk of another one.
- Underfunded reserve fund or no clear project roadmap.
