5 Questions To Ask When Buying A Townhome
Buying a townhome is like buying a single-family house, yet it is somewhat different. A townhouse is a multi-family unit, whereas a single-family house is a structure with only one home. If you never owned or lived in a townhome, here are five vital questions to ask when buying one.
1. What Do The CC&Rs Say?
One thing that you might not be familiar with is CC&Rs, which stands for covenants, conditions, and restrictions. The CC&Rs of a community is a list of rules that you must follow if you own a property within the community. Some facilities have relaxed and lenient rules, while others have strict guidelines. Before you buy a townhouse, read through this document to find out what rules they have there.
2. How Much Is The HOA Fee And What Is The HOA's Condition?
The second question to ask is about the HOA. An HOA is a management firm that controls the community. HOA stands for Homeowner's Association, and the HOA also has rules. Additionally, living in a community controlled by an HOA requires monthly dues. You pay these dues monthly, and the HOA provides services in return. You might want to ask about the services they offer and the monthly price you must pay.
3. What Type Of Insurance Does The HOA Provide?
You can also ask about the homeowner's insurance the HOA provides. When you buy a townhouse, the HOA might provide some of the home insurance coverage you need. If so, you will need less coverage.
4. What Is The Rate Of Owner-Occupied Units?
Next, you might want to ask about the owner-occupied rate within the community. This rate tells you how many people own the townhomes they live in versus how many are renting. Knowing this rate is vital as banks often have a difficult time approving loans when the rate is too low.
5. How Much Are The Property Taxes?
Finally, you should ask about the property taxes. While owning a townhouse is different than owning a single-family home, you must still pay property taxes. Knowing the amount is vital, as it helps you determine if you can afford the home. You might be able to find out this amount by viewing the property listing. If not, ask your realtor.
Asking these questions can help you make the right choice when buying a townhome. If you are ready to start searching for one to buy, talk to a local realtor today.