There are many aspects of homeownership to consider, especially for first-time homebuyers. "Homeownership is the biggest financial move you can make and also the most rewarding, but purchasing a home is not a quick and easy decision, especially if you are a first-time homebuyer," says Jim Hamilton, president of the Silicon Valley Association of Realtors. "Along with budget and location, your lifestyle and future life plans are also factors to consider when buying a home.
As Mary Beth Storjohann writes in HouseLogic.com, the consumer website of the National Association of Realtors, depending on your budget, lifestyle, and the responsibilities that you are prepared to take on, you will need to decide on what type of home to purchase, a single-family home or a condo.
Here are some factors Storjohann suggests to consider:
Space
How much space do you need now and do you anticipate needing over the three to five years? A two-bedroom condo could be prefect today, but if you foresee growing your family, working from home, or having frequent guests, a single-family home might be better suited for you.
Homeowners Associations
Like a condo, a single-family home may come with homeowners association (HOA) dues. Look into what the dues cover, how often they are adjusted and by what percentage. Ask about special assessments. Expect annual increases.
Pets
Before you purchase a condo, check on HOA rules, as some HOAs have strict rules about pets. Limitations, pet fees and regulations could make or break the deal.
Maintenance
Single-family homes require more attention than condominiums. There is yard work and regular care and home maintenance in a single-family home. A condo or townhome may be better suited for homebuyers who have limited time to spend on home maintenance.
Location
If you like city living and want to be within walking distance to a variety of dining options and activities, a condo would probably be a good option. If you prefer a quiet setting and wide spaces, you may want to consider a single-family home.
Parking
If you would rather have a private garage to keep your vehicle rather than an underground structure or parking on the street or in the open, a single-family home may better suit your needs.
Privacy
Depending on how the condominium is built, it is possible you would hear your neighbors through the wall and vice versa. You'll also meet them on the elevator or hallway. If you are a private person and prefer a backyard with a shared fence, you may prefer a single-family home rather than a condo.
Type of Mortgage
If you plan to put less than 20% down on your new home, when it comes to purchasing a condo unit with an FHA loan, both the lender and the condo community must be FHA-approved for FHA-backed loans.
A Realtor Can Help
To add to these considerations, Hamilton strongly advises buyers to enlist the help of a Realtor to represent their interests. "With today's market challenges, buyers and sellers need to know that their real estate professional is someone they can trust," says Hamilton. "Some consumers think all real estate agents are Realtors and interchange these terms, not realizing that not every real estate agent can legally use the title of Realtor."
Hamilton explains Realtor is a trademarked term and used by agents who are members of the National Association of Realtors. "Realtors are held to an even higher standard of conduct than other real estate professionals because Realtors subscribe to a strict code of ethics. As Realtors we are expected to maintain a higher level of knowledge of the process of buying and selling real estate and are committed to treat all parties to a transaction honestly."
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.