In its most simple form, the process of buying a home is little more than a series of decisions-a sort of Real Estate "what, where, when and how." One of the first decisions (and usually one of the easiest) is the "what." Housing falls into several different categories, most notably: Single family homes, townhouses, or condominiums. Each brings its own set of advantages and disadvantages. One type may be much better suited to your budget and lifestyle than another. Depending on your location, you may find more choices of one particular type of home than others.
Single Family Homes
By far the most common form of housing in North America is the single family detached home-ranging from 600 square foot bungalows to 6000 (or more) square foot sprawling mansions. The most important distinguishing factors that determine a single family dwelling are that it sits on its own piece of land (which is sold part and parcel with the home) and it is not attached to anyone else's residence. With single family homes, your home pretty much is your castle. Subject to neighborhood and subdivision regulations and ordinances, you can do with it as you wish. Want a different exterior color? Usually you can accomplish that (taking into account the fact that the neighbors may not be receptive to a purple house with ecru trim). Need more room and want to add on? Subject to the codes of your jurisdiction, you may be able to expand your living space.
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You will probably have a yard of some sort-from "postage stamp" size up through multiple acres, and your ownership will include all of it. In effect, when you buy a single family home your purchase will be of a parcel of land (your lot) on which sits a structure (your house).
Advantages
n To a large degree, "your space" is your own. You can modify or improve it as you wish.
Re-sale value is generally the highest on single family detached homes.
If you need more room, you can usually add on to the existing house.
n Generally there are no property management fees as there are in condominiums and many townhouses.
Disadvantages
All maintenance and repair costs-interior, exterior and everything in between-are yours.
Lack of amenities (for example, pools, playgrounds, etc.) that you may find in other types of housing.
You are responsible for landscaping and lawn upkeep costs.
In most areas, single family homes are more expensive than townhouses or condominiums.
Is a Single Family Home
for You?
You like your "space." The idea of
apartment living gives you the willies.
The prospect of cutting the lawn, trimming the bushes and shoveling snow excite you (or at least don't send you headed for the nearest bridge.)
You like the idea of modifying your home-changing the color, the appearance, the size. Having someone tell you that you couldn't do that would bother you.
If you like, you are able to build a single family home (building a townhouse or condominium community gets a little expensive!) See the section on building a house.
Townhouses
Townhouses often can make an excellent "middle ground" between a detached single family home and a full fledged condominium because, to some degree, they offer attributes of both.
For purposes of definition, we will describe a townhouse as a home that is attached to one or more other houses, but which sits directly on a parcel of land that you also own (if you don't own the land, it is a condominium). For this discussion, townhouses can ranges from duplexes and triplexes all the way through huge townhouse communities consisting of hundreds of similar homes.
There is a good degree of variance in the way townhouse communities are structured. It may be a simple agreement (as is often the case of duplexes and triplexes) that each parcel of land and the home that sits on it is separately owned. In the case of larger townhouse communities, you will generally have an additional shared ownership in the common areas of the complex as well as any amenities such as swimming pools, park areas, etc. This ownership you will share jointly with all other townhouse owners in the complex.
In any townhouse purchase that involves an Homeowners' Association, it is vitally important to get as much information as you can, since the association can have a considerable impact on your ownership experience!
Advantages
May have less exterior maintenance and repairs to be responsible for.
Having a neighbor's home attached to yours may bring a higher level of security.
There may be amenities in the community (for example, pools, tennis courts, playgrounds and the like).
Disadvantages
You will be responsible for payment of Home Owner's Association fees.
You give up privacy when compared to single family homes.
n Your options for changing the exterior look of your house will be limited.
Is a Townhouse for You?
You like the idea of your "space" but not having to deal with most exterior maintenance has even more appeal.
more TYPES OF HOMES page 30
from TYPES OF HOMES page 29
A small backyard "retreat" or deck is just about all the yard you need.
n The idea of having neighbors close doesn't really bother you-you just don't want them above and below as well as next to you!
Condominiums
The easiest way to understand the concept of condominium ownership is to see at as an apartment you own (in fact, many condominiums are apartments that have been converted over the years). Your ownership extends inward from your interior walls, floors and ceilings. In addition, you are a partner, with all of the other owners in the complex, of the exterior structure (the foundation, exterior walls and roof) as well as any common areas and amenities (for example, swimming pools, clubhouses, tennis courts, play areas, etc.)
One of the requirements of condominium ownership is the payment of a monthly condo fee, which covers general repairs and maintenance to the common areas of the complex as well as (hopefully) build up a cash reserve for future needs. In general, all exterior maintenance and repairs are the responsibility of the condominium association, although you will be charged for them, either through your association dues or a special assessment (a one time charge assessed to all owners for, as an example, a new roof). The normal day-to-day maintenance of the grounds (some examples are cutting the grass, shoveling snow and maintaining the pool) are also the responsibility of the association. Interior maintenance and repairs (for example, replacing a dishwasher) are the responsibility of the individual owner.
In some areas, a condominium may be the only consideration that fits within your budget. The reason for this is simple. In general, the same square footage will cost less in a condo setting than it will in a single family home or townhouse, due mainly to land cost-you can build many more condos than you can single family homes on the same amount of land.
Advantages
n You will be responsible for little or no exterior maintenance or repairs.
Many condominium communities offer amenities (pools, play areas, tennis courts, etc.) you may otherwise not be able to afford.
Condominiums are often located in locations convenient to centers of employment and shopping.
Condominiums are often more reasonably priced than other forms of housing.
Disadvantages
You will be responsible for payment of Condominium Association fees.
You give up more privacy when compared to single family homes as well as townhouses.
You only own from your interior walls inward. The rest of the structure and all of the land is owned in common with the other condominium owners.
When it is time to sell, it can often take longer to sell a condominium.
Is a Condominium for You?
You want absolutely nothing to do with exterior maintenance and repairs.
n You like the idea of amenities (swimming pools, tennis courts and the like) but you don't like the idea of having to pay for them on your own.
You like the safety of numerous and nearby neighbors.
