When you are considering purchasing a home, but you do not want the full responsibility of a single-family home with a large yard, the next option may be to look for a townhome. With a townhome, you have the benefits of outdoor space with ownership of the home's interior and exterior, but an HOA takes the responsibility of maintaining the grounds, landscaping, and community areas. To help you out in the process, the following provides you with some instructions to help you choose and buy a townhome for your personal residence.
Calculate Your Cash Needs
As a future home buyer, you will need to have some cash saved up for your upcoming purchase. There are going to be a variety of different costs and expenses that you'll need to pay for through the process, beginning with an earnest money deposit when you find the home you want to make an offer on. Once you make an offer that is acceptable to purchase a townhome, you will need to arrange for a home inspection and also an appraisal, which you may need to pay for at the time they are completed. Some costs can be calculated into the home's closing costs, but consult with your realtor and the title company handling the transaction to find out the specific details.
Also, look to have a good down payment for your home purchase. The more you can put down on your home purchase, the less you will need to finance, and this can save you a lot more money through the process. Some loans will require a down payment of anywhere three to twenty percent of the home's price, so be prepared for this.
Check Into the HOA
When you are shopping for a townhome, you will need to be aware of the HOA that manages the property. The HOA manages the property and its maintenance and regulations. If you buy a townhome, it will likely have an HOA that manages the property to make sure the residents follow specific rules in upkeeping the property and the ways they can improve and change the property exterior. The HOA keeps these regulations on the property for the residents that live there as a means to protect the property's investment. If, for example, your neighbor wants to paint the exterior of their unit a bright yellow color when it is already a palette of neutral tones, it may be prohibited because it would detract from the exterior of the building.
Check out the townhome's HOA rules and regulations to find out what is allowed and what is prohibited. This will include using the community areas that come along with your resident status, such as a pool, tennis courts, and a gym, which would be maintained and cleaned by the HOA fees that you pay each month. Other types of restrictions may include not parking vehicles on the street but only parking within your own driveway, carport, or garage.
For more information about townhomes, contact a local realtor near you.