Maintenance Upkeep for First Time Home Buyers
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.
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:
Condos: Condos are a very popular choice for first time buyers. Residents of a condominium have shared access to living spaces and facilities. 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 expenses of a building may include a reserve account used for emergencies and this may vary anytime.
Row houses: Townhomes, also known as ‘row houses’, are independently owned homes that typically don’t incur fees beyond your regular expenses. Some MN townhomes reside in a homeowner’s association wherein every member pays a monthly fee. 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: 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. 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: Detached home maintenance costs are typically the responsibility of the homeowner. 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.
Lenders may at times include maintenance fees and other costs in 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.
Any house has maintenance costs attached to it. 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.
