A buyer comparing two condos in Federal Way paused when trying to decide based solely on the sale price. One had low fees but a thick set of association rules, while the other had higher fees but a substantial reserve fund. It was clear that comparing only the sale prices wouldn't provide a complete answer.

So, what do HOA fees include? Basic items typically cover maintenance of the building's exterior and roof, master insurance, operation of common facilities, landscaping and trash collection, some utilities, and contributions to the reserve fund. The national average ranges from $200 to $400 per month, while high-end condos with many amenities can exceed $500 to $1,000. This data is based on information from NAR and realtor.com.

What about the level in the Federal Way area? The median HOA fee in King County, where Federal Way is located, is $495 per month. However, this area is situated at the southern end of King County, adjacent to Pierce County, so there are properties closer to Pierce County's median of $354. There can be significant variations depending on the size, amenities, and year of construction of individual buildings, so it's important to check each property individually.

The most common question is why the reserve fund is important. Washington State has a reserve regulation under the Uniform Common Interest Ownership Act (WUCIOA) (RCW 64.90), which will apply to all associations established under previous laws starting January 1, 2026. Reserve studies must be updated annually and reviewed by a professional at least every three years, and the reserve funds must be kept in a separate account. If reserves are insufficient, special assessments may suddenly arise when repairs are needed for the roof, plumbing, or elevators.

How does this affect loan approval? Fannie Mae's condo project guidelines review the association's delinquency rate, reserve contribution ratio, litigation status, and commercial space ratio together. If these criteria are not met, the property may be classified as non-warrantable, leading to loan denial or unfavorable terms. This means that even if a property appears to have low fees, a lack of reserves could lead to greater burdens down the line.

The practical way to compare these two properties is to obtain resale certificates side by side. According to RCW 64.90.640, the association must provide this document within 10 days of request, which contains financial and legal information on 26 items. The issuance fee cannot exceed $275, and buyers are granted a non-cancelable 5-day right to rescind the contract. This provision will be in effect without a grace period starting January 1, 2026. By comparing the certificates of a building with low fees and one with high fees, you can numerically assess which is actually more stable.

After receiving this document, what should you look for? Before signing a contract, check the association's financial statements, recent reserve study, history of special assessments, and rental and pet-related regulations. If your family is choosing this area based on preferred school districts, be sure to review these items along with the school ratings. School district boundaries change frequently, so it's wise to verify assigned schools by address. Families moving from out of state should also note that property tax and insurance structures may differ from their previous residences. When deliberating between two properties, comparing the differences in reserve contribution ratios in the resale certificates can serve as a more practical basis for decision-making than the difference in sale prices. The buyer introduced at the beginning ultimately chose the property with higher fees after confirming through documentation that the reserves were sufficiently built up, reducing the likelihood of special assessments in the coming years. When two properties have similar sale prices, the contents of these financial documents ultimately become the deciding factor. This article does not constitute investment or legal advice, and consulting a professional before making any contracts is recommended.