What are specials or special assesments in Fargo Moohead
Here at Modern Market REALTORS®, we’re often asked about special assessments—known locally as “specials.” These fees can surprise many newcomers since most other regions don’t assess them like we do in the Fargo-Moorhead area. If you grew up around here, you’ve likely heard of specials. For everyone else, it might feel quite foreign at first.
Special Assessments: A Unique Method of Funding Neighborhood Improvements
These special assessments essentially help cities raise money for the additional infrastructure needed when new neighborhoods are built—or if older neighborhoods require upgrades. While many other cities nationwide rely on local or state taxes to fund projects like roads, sidewalks, or utilities, cities in the FM area (Fargo-Moorhead) adopt a “specials” system.
Read more about why existing homes might be more appealing in Fargo ND.
Think of Specials as Another Form of Taxes
Because these charges fund local improvements, you can avoid higher specials by purchasing in an older, established neighborhood. Newer homes in freshly developed areas tend to carry steep special assessments to cover all the brand-new projects. If you want to keep special assessment costs down, consider an older home that’s already gone through this funding cycle.
How Special Assessment Districts Work in Fargo and Moorhead
In Fargo, ND and Moorhead, MN, the cities cover costs for streets, sidewalks, ponds, bike paths, and sewer work via a loan—then homeowners pay back that loan over 5 to 25 years through a Special Assessment district. For a new development, the city shoulders the initial bill, and homeowners pay monthly or annually (if there’s no mortgage). In some cases, if a homeowner neglects yard care or snow removal on city sidewalks, the city does the work and adds those charges to the resident’s special assessments.
Not all cities use this system. For example, Williston, ND requires developers to pay for roads, sewers, and other infrastructure costs upfront—then developers recoup that investment through higher lot prices. However, cities like Fargo, Bismarck, and Mandan still use special assessment districts, which can lower upfront lot prices but add recurring costs.
An empty lot might cost $35,000 with an additional $14,000 to $25,000 in specials—translating to roughly $100–$200 per month on your mortgage. If no specials exist, that same lot might be double the price, but the trade-off is no monthly specials payment.
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The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity SM Program of the Regional Multiple Listing Service of Minnesota, Inc. The information provided is deemed reliable but not guaranteed. Properties subject to prior sale, change or withdrawal. ©2024 Regional Multiple Listing Service of Minnesota, Inc All rights reserved.
How Do You Avoid Special Assessments? According to Shannon Barnum of Modern Market REALTORS®, “Either way you pay—whether with a cheaper lot plus specials or an expensive lot with no specials. If you want to lower that additional expense, buy a home that’s at least 10 to 15 years old.”
New construction or younger homes come with the advantage of modern amenities but often carry a “new home smell” premium, plus those higher specials. If you’re just starting out, buying an older home gives you time to learn the ropes of homeownership before taking on larger payments and hefty specials. Then, when you’re more established, you can confidently build or buy a newer property and handle the higher fees more comfortably.
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