So you’ve saved for months or years, and you’ve finally got enough money for the down payment on a new home. Before you start looking at listings, discuss with your real estate agent what type of property would be best for you. Here’s a brief overview of the types of properties you might consider.
Build Your Own
Some families like to work with a builder to design their dream home. This offers several advantages in that the home is fully customizable, and unlike with many previously owned homes, there will be no hidden issues or damage. This is a good option for families with lots of free time and sufficient finances, as building a home is an expensive and time intensive process.
Newly Constructed Homes
Families who don’t have time to build their own home may consider a newly constructed home built by a developer. There’s not as much customization, but buyers will avoid potential issues associated with older homes. New construction homes may cost significantly more than pre-owned homes, but your real estate agent may be able to help you negotiate a better price with the developer.
Most families buy a pre-owned home because they are more affordable than new homes, and there’s often the opportunity to work with your real estate agent in negotiating a better deal. Older homes often have large rooms, extra character, and unique features reflective of the time it was constructed. Pre-owned homes must be thoroughly inspected before purchase because they could have major problems that aren’t immediately noticeable.
Condo & Townhomes
Condos and townhomes are both options for people who want ownership of a property but don’t want the responsibility of extensive maintenance and upkeep. A condo may have units above, below, or on each side of the unit. A townhome is connected on at least one side to another home, but there are no units above or below it. In both cases, owners share responsibility for common areas like swimming pools and hallways. There’s usually a monthly association fee, in addition to the mortgage that covers building management, maintenance, and landscaping. Before you purchase a condo or townhome, be sure you agree to all the association’s rules, particularly when it comes to pets, visitors, outside decor, etc.
Now that you have a better understanding of the different types of properties available for you talk to your real estate agent about viewing homes in your area. Happy house hunting!