What do I need to know and what are the things I need before I buy a townhome? (FIRST TIME BUYER)?

Question

Any records?

Any additional payment other than the monthly payment itself?

What do you guys usually do step by step before buying a townhome?

Is it very similar to buying a home?

Answer 1

You mean townhouse not town-home?

You will pay monthly maintenance fees around $800 + 1st year worth of  property taxes upfront. If you are putting less than 20% down you will pay PMI (Private Mortgage Insurance) It will be added to your monthly payments + utilities. You will also pay closing costs, lawyer fees, survey fees which can be as much as $10K.  Buying a house, townhouse or a condo is sooooo

expensive. When taking all these things in consideration + the interest on the 30 year mortgage you will end up paying about 3 times more than the value of the house.

With the property values dropping or remaining stagnant buying a house is not a very good investment at this point.

Only buy if you have a family and if renting is very expensive and you have a lot to put down.

Answer 2

I like Weimereiner Mom's answer.  Yes, be sure to read the governing documents that tell what you can and can't do.  Also, make sure that you understand that you will have to pay monthly fees to the HOA.  Find out how much they are and what these fees do and don't cover.  Many HOAs, for example, provide some level of insurance coverage on the building, but require owners to insure the contents.  You'll want to know what you're getting in return for those monthly fees.

Also, ask about the Association's reserves.  HOAs typically take care of the maintenance and replacement of such things as roofs, siding, etc.  If the HOA has been well run, they will have reserve funds set aside for these big projects.  If not, you could be on the hook for a big "special assessment" when the next big project comes due, and the HOA hasn't set aside the funds.  When this happens, owners can be asked to pay several thousand dollars each to fund the project.

If possible, see when the HOA Board meets and try to attend a meeting.  That way, you might get some sense of how tough or how lenient the HOA is.  Unfortunately, some HOAs can be very intrusive, nitpicking about things like the color of flower pots you can have on the porch, etc.  Others are not too concerned about what individual owners do, and there is not much in the way of enforcement.    You'll want to ask around to see what the "culture" of that particular HOA is, and see whether it fits your lifestyle.  Good luck!

Answer 3

It's the easiest thing in the world.  The seller signs a deed and you pay the money.  When you swap the deed and money, you own the house and he has his money.  The biggest problem is that you will be living close to your neighbors in a townhome.  Do some homework.  Do the other people like living there.  Is the next unit rented to noisy people who have a party every weeknight.  Does the HOA have any money in reserve or might they tell you "Sorry, the monthly dues are $500 extra because money is so tight".  

After you buy it you live happily ever after.

Answer 4

Yes and No.  Is the Townhome run by an HOA?  If yes then before you consider buying read the condo docs.  Make sure there aren't any limitations or rules that you cannot adhere to, i.e. no dogs allowed over 25lbs, no aggressive breeds, no dogs/pets allowed etc.  You dont' want to put in an offer and find out that you can't bring your pets (if any) with you.

If there is an HOA find out what they cover, water, sewer, outside electricity, pool, trash removal, landscaping, roofing, roads, exterior painting, etc.  Some HOA's pay water so you don't, some don't cover the exterior or the roof and that's your cost some cover landscaping some don't.  Most HOA's charge a monthly assessment fee, find out what yours will be, this is not included in your Mortgage, in fact they are two different items and kept completely separate.

The purchase of a townhome is no different from purchasing a house, cept most townhomes are run by Home Owners Associations that has a property management company to oversee everything and they that charge a monthly fee, and definately have condo documents (rules & Regulations) that you must read before buying, unlike a home that has an HOA but usually your cost to the HOA is yearly and it's very minimal and they come with not a lot of rules.  

Make sure you have all the facts before making an offer.