There is a family that only read the HOA regulations in detail after signing a contract for a condo. This family was looking for their first home in Palm Springs. The community prohibited short-term rentals, but they had plans to rent it out as a second home later. They found out about the regulations only after signing the contract.

Looking at the market in Palm Springs, the median sale price as of February 2026 is $660,000, which is a decrease of 0.68% compared to the previous year. According to Redfin, the three-month average median price until May was $659,000, and the average market exposure time as of June was 67 days. While this is shorter than the previous year's 77 days, it is still relatively comfortable compared to Los Angeles or Pasadena.

Palm Springs has a high proportion of condos and townhomes. Many communities have HOAs, and the regulations can vary significantly from one community to another. The level of management fees also varies, and restrictions on short-term rentals, pet policies, and exterior modifications are set differently for each community. If these regulations are not checked before signing a contract, it can lead to unexpected monthly management fees and disrupt future plans for use.

It is common to calculate the mortgage principal and interest without considering HOA management fees when budgeting. Some communities have management fees in the hundreds of dollars per month, so overlooking this can lead to actual monthly expenses being much higher than expected. Property taxes should also be taken into account. In California, the base tax rate is 1%, and when local bonds are added, the effective tax rate often rises to between 1.1% and 1.3%.

Inspections can also be an easily overlooked item. For condos, it is important to check not only the condition of individual units but also the state of common facilities. If the status of the HOA's reserve fund is not verified, there is a risk of missing future special assessments. It is necessary to request and review HOA financial documents before signing a contract.

Closing costs are another item that can be easily missed. They are typically reported to be between 2% and 5% of the sale price, so for a home in the $660,000 range, at least $13,000 to as much as $33,000 or more may be needed at closing. If it is a condo, HOA transfer fees may also be added, so it is advisable to obtain a closing cost estimate in advance.

Managing credit scores and debt ratios is also important. Condo loans can have stricter approval criteria than single-family home loans, so it is beneficial to delay large expenditures before closing and compare estimates from multiple lenders.

It is also important not to overlook reserves. After preparing for the down payment, closing costs, and HOA transfer fees, it is common to have little extra money left. It is safe to set aside an amount equivalent to at least three to four months of living expenses.

Going to see properties without pre-approval is also a common mistake. While the market exposure time in Palm Springs appears to be more relaxed at just over two months compared to Los Angeles, competition for listings tends to increase during the winter snowbird season. Having pre-approval in advance allows for accurate planning of overall funding, including closing costs.

If purchasing as a second home, it is wise to consider the potential for long-term conversion to primary residence or resale timing. Rather than emotionally choosing a community that you like first, it is more logical to check whether the HOA regulations align with your intended use.

During the hot summer months, cooling costs can significantly increase in Palm Springs. If management fees or utility costs are not included in the budget, actual living expenses may be higher than expected. Requesting recent months' electricity bills from the seller before signing a contract can also be a good strategy.

In areas like Palm Springs, where purchases for second homes or investment purposes are mixed, it is advisable to first confirm whether long-term usage plans align with the regulations. If there are rental plans, it is essential to check whether short-term rentals are allowed. For families considering school districts, it is recommended to verify the GreatSchools ratings and assigned schools based on the address. This article is not investment or legal advice, and it is recommended to review HOA documents with a real estate professional before signing a contract.