When you're considering what type of home to purchase as a first time home buyer, understanding the total maintenance costs may be a key factor in your decision making process.
Certain types of MN homes for sale incur neighborhood association fees or extra taxes and fees imposed by the town or city government; knowing what these fees are in the early stages of your new home search can help you make the best decision given your budget requirements or limitations. I'll enumerate the basic fees bundled with some common types of homes.
Condominiums: Condos or flats are increasingly becoming popular for first time house buyers. Condominiums are a form of real property wherein individual units in a multi-unit complex or building may be owned but each owner has access to common facilities such as hallways, main entrances, stairs and elevators. As a result, you'll be responsible for paying association fees and maintenance fees that are based on a percentage of ownership of the building.
Ilyce Glink, author of the book '100 Questions Every First-Time Home Buyer Should Ask' explains that condo fees are calculated by taking the total building's expense and dividing that by the percentage of ownership. The total expenses of a building may include a reserve account used for emergencies and this may vary anytime.
Townhouses: The fees associated with town homes are the same as any independently owned homes incur. But some MN townhomes are part of a neighborhood or homeowner's association. Being part of an association requires an owner to pay monthly association fees for the overall maintenance expense of the association including taking care of common yards and shared areas.
Mobile Homes and Pre-Fabricated Homes: Mobile home owners and pre-fabricated homeowners are usually responsible for all fees involved with maintaining and operating their home. These fees are comprised of, but not limited to, water, sewage and garbage, electricity, cable and other services. But some mobile home parks do charge a fee for renting land space. In addition, each park has specific requirements and rules that a homeowner must first agree to.
Single-Family Home: Owners of single-family houses are the only ones responsible for their houses' operating and maintenance costs. Even if the home is within a community setting, the homeowner will be responsible for maintenance and upkeep, landscaping, lawn services and other fees associated with maintaining a home. You will also be responsible for all real estate taxes and government fees.
If you are considering to get a loan, remember that some lenders might package some of these maintenance fees into your loan. Make sure you have an accurate assessment of total costs from the realtor and then approach your loan officer with all of the details to make the most of your loan and pay for only what you can afford.
Any house, whether it is a single-family home, a condo or a mobile home, has several implicit ownership and maintenance costs. It is better to know more about these costs while you are still searching rather than be surprised by every fee you have to pay after you bought the house. Compare the total costs for each house you are interested in next to each other by using simple spreadsheets or checklists. In this way, you are making an informed choice that you are less likely to regret.
