🏡 Buying a Home with an HOA in San Diego County? Here's What You MUST Know About the Financials

By Gina Mancuso | Director of Luxury, Battiata Real Estate Group | eXp Luxury | San Diego County

Why HOA Financials Are Just as Important as Location

In San Diego County, it's easy to fall in love with a property. Maybe it's a beachside condo in La Jolla, a charming Encinitas townhome, or a luxury estate tucked behind the gates of Rancho Santa Fe. But when that property is part of a Homeowners Association (HOA), you’re not just buying the home — you’re buying into the financial health of the entire community.

I’ve helped hundreds of clients across San Diego successfully purchase HOA properties. One of the most common mistakes I see is buyers focusing only on the HOA dues, without digging deeper into the quality of the HOA’s financials.

What Happens if the HOA Isn't Financially Healthy?

• ⚠️ Expect special assessments
• ⚠️ Deferred maintenance
• ⚠️ Higher dues later
• ⚠️ Potential headaches when you go to sell or refinance

✨ The Exact Items I Review for My Clients During HOA Due Diligence

• 📅 Reserve Study — Was it completed within the last 3 years?
• 💰 Reserve Funding Level — Is the reserve fund at least 70% funded?
• 📊 Annual Budget — Is the HOA operating on a balanced budget?
• 🏦 Reserve Contributions — Are contributions in line with reserve study recommendations?
• 🧾 Delinquency Rate — Less than 5% of homeowners behind on dues.
• ❌ Special Assessments — None in the past 5 years and none on the horizon.
• 💳 HOA Loans — Are there any loans?
• 🛠 Operating Fund — Are daily expenses covered without dipping into reserves?
• 🛡 Insurance Coverage — Is coverage sufficient and up-to-date?
• 🤝 Board Practices — Is the board proactive, transparent, and acting on the reserve study?

🔍 Smart Questions You Should Always Ask (Before Falling in Love with the Home)

1. When was the last reserve study completed?
2. What is the current reserve fund balance and funding percentage?
3. Have there been recent or upcoming special assessments?
4. What's the delinquency rate?
5. Are major capital improvements planned?
6. Are dues increasing gradually (a good sign) or artificially flat (a warning sign)?
7. Are there any outstanding loans?
8. Is there a detailed maintenance and capital improvement plan?

💡 Gina's Luxury Buyer Tip

In San Diego County, especially in luxury and coastal markets, I recommend prioritizing financial strength over just low dues. Low dues may sound appealing but could be hiding underfunded reserves or deferred maintenance — which almost always costs homeowners later.

Why It Matters for Your Investment

In a market like San Diego County, where HOAs are common, understanding these financials is critical. When I advise clients, my role is to go beyond the MLS listing and make sure the numbers behind the scenes match the picture-perfect neighborhood.

When you buy with me, you're not just buying a home — you're making a smart, protected investment.

✅ Work With an Agent Who Checks the Details

If you’re considering buying a home in an HOA, let’s make sure you’re fully protected. I’d love to walk you through the financials, the documents, and the big picture.

Connect with me:
Gina Mancuso | Director of Luxury, Battiata Real Estate Group | eXp Luxury