In lesson one of the mini course, prospective buyers were told that before deciding whether to rent or buy, a prospective home-buyer must examine their motivation and ask several questions before proceeding. They must ask whether they have the employment stability and the financial wherewithal to make the large expenditure required in purchasing a home. Getting advice about the potential purchase of a home will probably prove to be useful. In Washington, the Department of Financial Insitution’s web site has all types of information for first time home-buyers. Lesson two focused on using the resources of the Department of Financial Institution and Department of Housing and Urban Development (HUD) to locate prospective buyer counseling resources. Lesson three focused on the types of mortgages and the advantages of pre-approval of your mortgage. After a prospective buyer has been pre-approved, they are ready to search for properties.
If you were able to get pre-approved for a mortgage that will make the process of purchasing your new home easier and faster. Now, it is time to begin the hunt for the perfect, for you, piece of property. There are several types of property which might make the perfect home for you.
US Real Estate.Com has a description of the different types of residences:
A single-family home is exactly that – a home where one family lives. There are many variations and styles of single-family homes. There is ranch, cottage, cabin to country, colonial and contemporary. These homes may be a single-story or have more than one. …
The owner of a single-family unit generally owns the property above and below the home, which is the air above the house and the soil beneath it….
This is a residence where two or more families live independently of each other. Living quarters are separate and some utilities such as electricity are paid separately. For other utilities one bill may be received and divided amongst the number of residences to figure out how much each one should pay. There may be many different types of multi-family residences.
A condominium or condo as this type of residence is commonly known is a residence that is divided up into units. The owner owns the space and holds title to the space between the walls of the unit. However, all common areas such as entry foyers, hallways and laundry rooms are jointly owned by all unit owners. Condos may have common recreation facilities such as a swimming pool or gym for the residents to use. These common areas and amenities are maintained using association fees the residents pay each month. They are known as condo association fees. Another advantage of owning a condo is that very often the heating, water and other utilities charges may be paid out of the association fees as these utilities are shared. This can also be a drawback. For example, you may not be able to turn the heat on and off when you wish….
A cooperative or co-op as it is commonly known is very similar to a condo. It is difficult to judge from appearances whether a property is a condo or co-op.
When you reside in co-op, you generally own shares in the property and the number of shares you own is based on the unit you live in.
A co-op is managed by a board. The board decides who lives there. Board approval is a prerequisite to living in a unit. …
This is a type of dwelling where the property it attached to other properties which are generally similar in appearance. Unlike a condo, the owner owns the space above and below the residence. There is no association as you own the property outright and it is a single dwelling. These residences also come in all shapes and sizes.
This is where the owners own the home outright and conduct all the maintenance and repairs on the inside and outside of the property. However, there is a common yard area that all owners may use. This area may include various recreation facilities such as a swimming pool. All the homes owners pay a fee for the upkeep and maintenance of this area.
There are also mobile homes, manufactured homes and modular homes, but the types of residences listed above are the principal types of residences.
The primary decision about determining which type of residence is best depends on budget, location and which amenities the buyer finds desirable. There are pros and cons to each type of residence. It is a very individual decision as to which type of residence is best for an individual purchaser.
Understand the different types of residence types.
What amenities are absolutely necessary versus what amenities are desirable.
Decide which type of property is best for your particular situation.
Realistically assess your budget, can you comfortably afford your desired home?
Don’t rush into a particular purchase and don’t let yourself be pressured into a quick sale.
If possible, get pre-approved for a mortgage.
Questions to Ask:
What amenities do I require in a home?
In what neighborhoods or locations do I want to live?
Is the proposed mortgage amount realistic for my budget?
Am I flexible regarding the type of dwelling?
Do I want a ready to move in home or am I willing to move into a fixer?
What is the potential for re-sale if I have to move?
Home Buying Tips
How to Decide Whether to Buy A Condo, Townhouse, or Co-op
Your First Home A Condo or A House
The Pros and Cons of Buying a House v. A Condo
A Choice Between A Condo and A Co-Op
Dr. Wilda may be contacted at [email protected]
To receive updates from the Seattle Public Education Examiner, just click “subscribe” at the top of the story and enter your email address, which will not be shared.
Dr. Wilda says this about that ©