Buying A Single Family Home, Detached Condo or Attached Condo - Know What You Are Getting Into!

Detached Condos

In its most basic, a detached condo is still a single-family home, but it's legally classified as a condominium. Offering the traditional benefits of condominium living, detached condos are typically found clustered together in communities located in cities.  An attached condominium is usually attached to other similar units by a common wall.

Detached condos are a way to buy relatively more home for less money than compared to single-family homes. However, the long-term resale value of detached condos often depends on the quality of their homeowner associations and community maintenance.

The main difference between buying a condo and a single-family home is the type of ownership you receive. With a condo you get the exclusive right to the interior space of your dwelling unit, but the land, walls, grounds, fences and facilities are owned in common with the other owners in the complex. There are HOA rules that everyone has to live by called Bylaws or Covenants, Conditions & Restrictions (CC&Rs) that can limit pets, number of vehicles, even what you can have on your patio.

With a single-family home you are the sole owner of the building and the land it sets on. This is called "fee simple" ownership. However, in some cases depending on the neighborhood detached single family homes may still be part of a Home Owners Association, but the HOA does not maintain the home, only enforces any rules of the neighborhood. Rules for the HOA can be difficult to change so find out what is required to change the rules.  It's also a good idea to review the minutes of six to 12 months of board meetings to understand the current issues that are being discussed. Look over the financial documents such as the budget, reserve study and any assessments and find out how many of the units are non-owner occupied. This may affect your ability to get a loan. Finally, you'll want to know if the association is involved in any litigation. The seller, real estate agent or escrow company will order these documents from the management company for you to examine and approve.

Today's Blog Courtesy of 

Bernita McKinion

Office and Acquisition Manager, Homeland Investment Properties