So many, many HOAs and condo assocs. are poorly managed and have no capital plans (I even had a condo once where the agreement prohibited a capital fund!).

Two points - first to yours on it being more difficult to sell. In fact, it can be the opposite. To get a mortgage these days it often requires the hoa/condo to have at least 10% of the annual budget in reserves. While often not the case, buyers should also be comparing the relative reserve states too and realize low reserves means specials

The second point is that failure to reserve the majority of the cost of expected capital needs can result in a situation of liens and foreclosures (to get a paying owner in) and the HOA going cup in hand to a bank who may or may not loan the shortfall at a terrible interest rate. Or the project is put on hold and the cost may rise because of inflation or further deterioration of whatever was being renovated.

When homeowners gripe about the dues and 'look how much is in reserves' I always ask: so when the roof needs to be replaced, you'll be good to cut a $5 or 10K check within 30 days? No? That is why the HOA reserves the vast majority of the cost.