For anyone shopping for a condo in the Coachella Valley, the purchase price is only part of the cost.
Once buyers calculate their down payment and mortgage, there is another monthly expense to consider: the homeowners association fee.
Across the Coachella Valley, the typical HOA fee is about $394 a month. In Palm Springs, the average is about $448, followed by Rancho Mirage at $436, La Quinta at $413 and Palm Desert at $367.
But some communities have significantly higher monthly charges.
Published figures discussed on the Roggin Report include about $1,357 a month at Big Horn in Palm Desert.
At Desert Island in Rancho Mirage, published HOA figures have been reported as high as $1,735 a month, although current listings vary depending on the unit and what is included.
At The Springs Club in Rancho Mirage, mandatory community and social charges total roughly $1,826 a month before golf.
Marrakesh Country Club in Palm Desert has published monthly charges of around $1,860.
And at The Lakes in Palm Desert, mandatory monthly charges are about $1,887, or $22,644 a year, before a mortgage, property taxes and golf. Golf dues are additional.
Those fees can cover considerably more than landscaping.
Depending on the community, HOA charges can include landscaping, security, roads, pools, building maintenance, reserves, cable, internet, insurance, fitness facilities and social amenities. Country club communities can also include extensive recreational facilities.
That means a high HOA fee is not necessarily paying for a single service. The more important question for buyers is what is included and how the monthly charge affects the overall cost of ownership.
Consider a $400,000 condo with an $1,800 monthly community charge. The HOA would add $21,600 a year to the cost of ownership.
Over five years, that is $108,000. Over 10 years, it would total $216,000, assuming the dues never increase.
That last point is important for buyers. A 30-year fixed mortgage can remain fixed, but HOA fees can change.
Insurance costs can rise. Labor and maintenance costs can increase. Reserves have to be funded, older communities can require repairs, and special assessments can add costs on top of regular monthly dues.
The Valley-wide average provides some perspective. A database tracking hundreds of Coachella Valley communities puts the typical HOA fee at about $394 a month and shows only a small number of communities with fees of $1,000 or more.
For contributors Stephanie Green, CEO of FG Creative, and DJ and promoter Aaron Aldarizio, the value of a high HOA depends in part on what the fee covers.
Aldarizio said an $1,800 HOA on a $400,000 condo would make the property difficult for him to consider, while also noting that buyers should calculate expenses they might otherwise pay separately, such as gardening, pool maintenance and pest control.
Green said prospective buyers should look beyond the monthly fee and examine the HOA itself before purchasing.
She recommended attending an HOA meeting to see how the board operates and whether homeowners are satisfied with the community.
For buyers comparing condos priced at $300,000, $400,000 or $500,000, the listing price may therefore be only one part of the financial picture.
In some Coachella Valley communities, the HOA can become a second major monthly payment, making it important for buyers to understand exactly what they are paying for before making an offer.
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