For the first-time home buyer, the process can be overwhelming. There are many things to consider, many decisions to make. One of those big decisions is whether to buy a house, condo or townhouse. Purchase price is usually a deciding factor between a single family home and a condo or townhouse, but there are also fees and responsibilities to be aware of and take into consideration.

Added Fees

When you purchase a condominium or townhouse, you become part of the community, or association, which shares some of the costs of the development. Typical association fees can include:

• Lawn maintenance

• Building exterior and interior care

• Sanitation

• Insurance to cover the building exterior

If you are considering a condo, you may find extra fees in addition to what is listed above. Condo fees may also include:

• Security

• Heating

• Amenity maintenance like pool and rec room

• Cable

• Air conditioning

Outside Management

Another thing to consider when looking at a condo or a townhouse is the management. Communities like these are often managed by an outside property management company. While it takes some of the responsibility and pressure off you, there will be certain rules you have to abide by.

Before buying, ask the association:

• How do they pay for major repairs and improvements? Do they dip into reserves or raise the association and management fees of their owners?

• What is the turnover rate of the building? This will give you an idea of residents are typically happy there or not.

• What are the rules on pets? This is especially important if you are a dog or cat lover.

• Are there limitations on renovation and adding on to the townhouse?

• What is the ratio of owners to renters? Again, this will give you an idea of the stay-ability of the residents.

• What is the annual inflation like on the fees? Apartment boards and associations should raise their amounts a fraction each year to stay in line with utility inflation and other rising costs. But their fee raising should be reasonable, and in line with others in the same area.

What About Houses?

All this talk about fees and rules may seem like a house is definite the way to go. But not so fast!

As a house owner, all the maintenance and repair bills are your responsibility. Also, starting prices of single-family homes are typically higher than that of a condo or townhouse.

When buying your first home, there are a lot of decisions to make. Home buyers look at many factors like location, space and price; and have to decide which type of home is best for them. When shopping for your first home, take a look at the pros and cons of buying a house, condo or a townhouse and decide which has the most benefits for you.