Minnesota Houses for Sale's website

Buying a Home and Maintenance Costs - What You Need to Know

Maintenance fees and costs vary across different types of houses. These costs must be known by first time homebuyers and factored into their buying decision.

Certain types of MN homes for sale incur neighborhood association fees or extra taxes and fees imposed by the town or city government; knowing what these fees are in the early stages of your new home search can help you make the best decision given your budget requirements or limitations. I'll enumerate the basic fees bundled with some common types of homes.

Condos: Condos are a very popular choice for first time buyers. Residents of a condominium have shared access to living spaces and facilities. As a result, you'll be responsible for paying association fees and maintenance fees that are based on a percentage of ownership of the building.

Ilyce Glink, who is the author of the book '100 Questions Every First-Time Home Buyer Should Ask' says that each owner must pay maintenance fee equal to his total share of ownership in the condominium. This is calculated by first getting the total expenses in operating the building and dividing this to an owner's percentage of ownership. The total building expenses include the building's emergency reserve account, and the final cost may fluctuate over the course of the year.

Townhouses: The maintenance fees of a townhouse will not go beyond what you would expect of a regular, exclusively owned home. Some MN townhomes reside in a homeowner's association wherein every member pays a monthly fee. These monthly association fees usually comprise of repair and maintenance costs of common exteriors and landscapes.

Mobile Homes: Homeowners of mobile and pre-fabricated homes shoulder all fees in operating and maintaining their homes. This includes the cost of sewage, water, cable and other utilities. Mobile houses can also be located in mobile parks. Some parks charge homeowners for a fee to lease the land they locate in.

Single-family detached homes: Maintenance costs of these houses are solely the responsibility of the homeowners. Typical maintenance costs come from yard upkeep, house repairs, water, and other utilities. You will also be responsible for all real estate taxes and government fees.

Keep in mind that some lenders may roll in your condo association fees or other fees involved with home ownership based on your loan package. I advise that you first talk with your realtor and determine the maintenance costs for the house you're interested in. Only then should you deal with a lender so that you can get the best possible loan package that is within your budget.

Any house has maintenance costs attached to it. It is better to know more about these costs while you are still searching rather than be surprised by every fee you have to pay after you bought the house. Having a side-by-side comparison of the total costs involved can help you make the most informed decision for your new home purchase.