Maintenace Fees for First Time Home Buyers
By emily
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 MN homes for sale 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. Here is a basic breakdown of maintenance costs associated with different types of homes:
An increasingly popular choice for first-time homebuyers, living in a condo means you have access to shared living spaces and amenities. As such, you’ll need to pay fees depending on your stake in the building.
Ilyce Glink, who is the author of the book ’100 Questions Every First-Time Home Buyer Should Ask’ says that each owner must pay maintenance fee equal to his total share of ownership in the condominium. This is calculated by first getting the total expenses in operating the building and dividing this to an owner’s percentage of ownership. This cost also includes a payment for a building’s emergency reserve fund, which varies over time.
Townhomes: The maintenance fees of a townhouse will not go beyond what you would expect of a regular, exclusively owned home. However, some MN townhomes are part of a homeowner’s association, in which case you will need to pay a monthly fee for maintenance. This fee typically covers the cost of painting the exterior and landscaping common areas.
Mobile Homes: Normally, mobile home owners are solely responsible for their own maintenance expenses. 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: 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; check with the realtor and a financial advisor to get an estimate on what this may be.
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. I advise that you first talk with your realtor and determine the maintenance costs for the house you’re interested in. Only then should you deal with a lender so that you can get the best possible loan package that is within your budget.
Whether you’re interested in a townhome or a single-family house, there will be several costs involved with home ownership and maintenance. When you are comparing homes you are interested in, always understand what the financial implications are for owning each 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.
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