People who long to become homeowners but do not want to pay the price for a house will often turn to townhomes. Townhomes are homes that are part of multi-family house communities, but they are as close to a single-family family home as you can get. They are priced lower, though, and that is the reason so many people love these types of homes. If you are thinking about buying a townhome, here are several tips to help you buy the right one.
Understand what it is
Before you buy a townhome, it is important to understand what you are buying. A townhome is likely going to be connected to at least a couple other units, and it is highly likely to have two floors in it. The unit might have two bedrooms or three, and it might be on the smaller side or it might be bigger. Most townhomes come with at least one garage space for you to use, and they may offer a small yard too. With a townhome, you will have to pay a monthly fee to the homeowner's association (HOA) that controls the community.
Learn more about the HOA
Choosing a townhome based on its size, location, and condition is important, but factoring in the HOA of the community is also very important. The HOA will play a role in what you can and cannot do at the home, and it will cost you money. Every month you will have a fee you must pay, so before you buy a townhome, find out the fee amount. You should also ask for a list of rules to learn more about your rights and responsibilities with this particular home.
Evaluate the HOA's finances
You should also ask for information about the financial standings of the HOA, as these can affect your loan. One aspect of the HOA's finances is the delinquency rate, which is a rate that tells you how many homeowners are past-due on their monthly HOA payments. If this rate is high, you might want to avoid buying this home. You should also ask about the number of units that are owner-occupied compared to the number of units that are lived in by tenants. Both of these numbers are factors your lender will want to know, and they could affect your ability to get a loan to buy this home.
There are a lot of other things you should analyze as you search for a townhome to buy, and you can learn more by hiring a real estate agent for help.
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