Before Buying a New Home See What Housing Options Are Out There
Single Family Home
This option seems pretty self-explanatory but other than the maintenance that goes along with homeownership there are a few things you might want to consider. If the single family home you purchase is in a neighborhood with a homeowners association (HOA), you will have an added expense, rules and deed restrictions you must follow. HOA rules can include everything from what colors you are allowed to paint your house to how many cars you are allowed to have parked at your property.
Site Condos are a little confusing for most people because they are a lot like single family homes. In fact, in order to be considered a site condo a unit must be single-family property that is completely detached from each other and no part of the house, land, or airspace can be considered a common area. Insurance and maintenance costs of the individual unit and property ususlly fall solely on the unit owner just like a single family home. A lot of times builders are able to save money on cost and permits while building a site condo community opposed to individual single family homes. Site Condos HOA fees are usually for amenities that are outside the bounds of the property (so they aren’t going to be cutting your grass for you).
Condominiums are privately owned units within a community of other unit. Each owner received a deed to their unit while they share joint ownership with the common areas of the complex. Condos also have a homeowners association fee. Traditionally condo association fees will cover exterior maintenance and the owner of each unit is responsible for the interior maintenance of their own unit. Condo insurance is normally a little bit less than a single family home because usually the homeowner is only responsible to insure their unit, sometimes referred to as in-wall insurance. Condos tend to be a little harder to sell than traditional single family home because of the niche buyer, however they are becoming more and more popular.
With cooperatives (co-ops) you own a share in the community, much like buying a share of a company. The association often take a mortgage out on the entire complex and then the homeowners buy into a share of the ownership. Traditional financing is often not available making cash king for co-ops. Traditionally the exterior and interior maintenance is the responsibility of the Co-op. Insurance for a coop is often just like you would have as a renter. Every co-op operates different, for some it will cover all maintenance interior and exterior, for others the residents volunteer to be on the Board of Directors and they may even work with the residents to do the maintenance themselves. Co-ops fees can include everything from the water bill to the property taxes. Be sure to check out the financials of the co-op prior to buying as well as having a very good understanding of the rules of the complex. Issues that may come up could include: renting your unit, having a roommate, responsibilities, high HOA fees, and more. Co-ops can be more affordable then renting so they are a good option, just some things to be aware of before buying.
Now that you are a little more informed about the options of homeownership please reach out to me at (248) 342-1174 so I can assist you in the buying process.