First time homebuyers should understand the fact that each kind of home has different maintenance costs associated with them. Knowing what these costs are can certainly help buyers make an informed decision.
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. Here is a basic breakdown of maintenance costs associated with different types of homes:
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 such, you’ll need to pay fees depending on your stake in the building.
The total expenses of the building is divided by a resident’s percent of ownership to arrive at the maintenance cost for each resident, explains Ilyce Glink, author of the book ‘100 Questions Every First-Time Home Buyer Should Ask’. The total building expenses include the building’s emergency reserve account, and the final cost may fluctuate over the course of the year.
Townhomes: The fees associated with town homes are the same as any independently owned homes incur. Some MN townhomes reside in a homeowner’s association wherein every member pays a monthly fee. These monthly association fees usually comprise of repair and maintenance costs of common exteriors and landscapes.
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. Mobile houses can also be located in mobile parks. Some parks charge homeowners for a fee to lease the land they locate in.
Single-Family Home: Maintenance costs of these houses are solely the responsibility of the homeowners. 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.
Keep in mind that some lenders may roll in your condo association fees or other fees involved with home ownership based on your loan package. 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.
Whether you’re interested in a townhome or a single-family house, there will be several costs involved with home ownership and maintenance. 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.