Maintenance fees and costs vary across different types of houses. These costs must be known by first time homebuyers and factored into their buying decision.
Some homes are imposed with special fees such as neighborhood association fees and even additional taxes depending on the town or city government. These fees must be factored in when buying any home especially if you are working on a budget. 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 such, you’ll need to pay fees depending on your stake in 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 building expenses include the building’s emergency reserve account, and the final cost may fluctuate over the course of the year.
Town homes or row houses: The fees associated with town homes are the same as any independently owned homes incur. Some town homes 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. This includes the cost of sewage, water, cable and other utilities. However, some mobile home sites do charge additional fees for renting the land, and every park has its own rules, regulations and requirements.
Single-Family Home: Also known as detached houses, maintenance costs of these houses are solely the responsibility of the homeowners. Single-family homes may also be located inside a community or a village though homeowners will still be responsible for all costs such as maintenance and repairs, lawn upkeep, electricity, water and sewerage services and other utilities.
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 town home or a single-family house, there will be several costs involved with home ownership and maintenance. When you’re searching for the right fit, consider making a checklist or worksheet that lists all of the different home options and related fees. Having a side-by-side comparison of the total costs involved can help you make the most informed decision for your new home purchase.
Tags: Finance, homebuying, real estate, real estate - buying/selling, real estate-housing