In the last month, I've shown dozens of townhouses to clients looking for their next home. One of my clients will be closing on a new townhome next week! I've got a solid perspective on the current market: what's available, where it is, and how much you can expect to pay.
Maybe this is an option you've been considering. If so, you've probably got questions:
How does an HOA work? What do association fees cover? How does insurance work? How can I know the association is being managed well before I purchase a property? What are the pros and cons?
I would welcome the opportunity to meet with you and provide answers to your questions. More importantly, I'd like to know more about your plans and thoughts so I could help you find the BEST home to meet your needs.
Please give me a call or send an email!
IN THE MEANTIME, HERE ARE SOME BASICS TO SPARK YOUR THINKING...
What Is a Townhouse?
A townhouse is a unit within a multi-unit property. These are usually composed of several floors and may include a garage and a small yard.
Residents often share walls and a roof, and there also may be shared common areas like pools, dog-walking areas, and fitness centers.
You’ll pay a monthly fee to the homeowners association to cover the maintenance.
What Are the Benefits of Owning a Townhouse?
Townhouse residents may have access to amenities such as pools, gyms, and dog-walking areas. If the townhouse comes with a yard, you’ll own the land. Even better, the HOA might include landscaping and pest control.
What Are the Drawbacks?
Because you’re sharing walls and backyard space with other neighbors, there’s naturally less privacy compared to most single-family homes.
Townhouse residents typically must follow the rules set forth by the HOA (Homeowner's Association). For instance, you might need to get permission to do major renovations and follow guidelines about decorating the exterior, and you might not be able to have certain pets. These policies can vary a great deal from one association to the next, so you'll want to be sure you review them before finalizing your purchase.
What Type of Mortgage Financing Is Available?
You can use a conventional loan or government-backed mortgage to buy a townhouse, but your lender will have specific concerns and will need to evaluate the financial health of the homeowners association.
Just because the market it crazy (or maybe intense would be a better word), it doesn't mean it's crazy for you to be buying or selling. For some sellers, there are reasons this might be the perfect time to sell. For many buyers it's important to get it now, because even though prices are high now, they are likely to be even higher down the road, and interest rates are still very favorable. Contact me to talk about your specific situation.
Here are some good tips excerpted from an article on downpaymentresource.com.
These six ideas can help you (finally!) score a home of your own.
1. Get your down payment in order.
...Get your home financing plan together so you can act quickly when the right home becomes available.
2. Get your homebuyer education.
...Data shows that homebuyer education and counseling builds successful long term homeowners.
3. Get pre-approved – and shop your loan.
Get pre-approved by your lender of choice — in a fast market, you need more than just pre-qualification. You need to show that you are actually approved for a home loan.
4. Contact a real estate agent.
Buying a home is one of the biggest financial decisions you’ll ever make. You need to be sure you have a good team on your side.
5. Use technology to keep up with inventory.
Technology is your friend — automate that home search. Talk to your agent about setting up alerts so you know as soon as a listing is online.
6. Pack some flexibility.
If you’re a first-time homebuyer, it may be harder to compete against multiple offers in a fast moving market.
CLICK HERE TO READ THE COMPLETE ARTICLE
When buying or selling a home, it's important to understand the market and gain helpful insights to help you achieve the best results.