Understanding Maintenance Fees With Different Kinds of Homes

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. I’ll enumerate the basic fees bundled with some common types of homes.

Condos are a very popular choice for first time buyers. Residents of a condominium have shared access to living spaces and facilities. As a result, you’ll be responsible for paying association fees and maintenance fees that are based on a percentage of ownership of 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’. 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 fees associated with town homes are the same as any independently owned homes incur. Some MN townhomes reside in a homeowner’s association wherein every member pays a monthly fee. These monthly association fees usually comprise of repair and maintenance costs of common exteriors and landscapes.

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. 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 detached homes: Maintenance costs of these houses are solely the responsibility of the homeowners. Single-family homes may also be located inside a community or a village though homeowners will still be responsible for all costs such as maintenance and repairs, lawn upkeep, electricity, water and sewerage services and other utilities. 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.

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, 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 and contrast the costs for each house by pitting them side by side with the use of a simple table or chart. Practicing this will help you arrive at an excellent decision.