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 homes 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.
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’. This cost also includes a payment for a building’s emergency reserve fund, which varies over time.
Townhouses: The maintenance fees of a townhouse will not go beyond what you would expect of a regular, exclusively owned home. But some townhouses are part of a neighborhood or homeowner’s association. 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: These are pre-fabricated houses built on factories and are then taken to the build site. Normally, mobile home owners are solely responsible for their own maintenance expenses that include electricity, water service, and sewage and garbage disposal. 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 House: 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; 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. 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.
Any house, whether it is a single-family home, a condo or a mobile home, has several implicit ownership and maintenance costs. 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.