Maintenance Upkeep for First Time Home Buyers
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.
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:
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.
Row houses: 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. 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 houses: Normally, mobile home owners are solely responsible for their own maintenance expenses. 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: 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.
If you are considering to get a loan, remember that some lenders might package some of these maintenance fees into your loan. Give all the information you got from your realtor to your loan officer and inform him/her of your budget to acquire a loan that will fit your needs.
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.
