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Buying a Single Family Home Vs. in a Condominium

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buying in a condo vs a single family

Condos are often priced lower than single-family homes and can be a significant proportion of for-sale listings. Condos require less effort to maintain because you aren’t responsible for exterior maintenance like mowing, painting, etc (You will, of course, pay for this maintenance in your HOA fee).

Condo insurance costs are normally lower than homeowners insurance, since you’re mainly insuring your possessions because the Condo must cover the properties with a “Master Insurance”

The cons of a condo are lack of privacy compared with a house (Single Family), HOA fees will increase your monthly costs above your mortgage payment and if you will probably need to put more down payment if the HOA isn’t well managed, has litigations, etc. For this reason something people think they need to put down 20% but that is not true, it will depends if the Condo is well managed and if you are buying your first property, a second home or an investment property.

Normally, banks have an internal Condominium Department where they evaluate each condominium to make sure it is well managed and thus know that the property will be able to maintain its value over time. This is beneficial not only for the bank but also for you who are buying because you will know that the property will not decrease in price and in the future if you need to sell it, you can sell it at a good market value.

In relation to the Single Family, most of them have no association and normally their market price is higher. In this type of property, it is much easier to qualify with only 3 or 3.5% down payment if you are a first time home buyer (as long as your income is enough to qualify)

If you have any concern of want to get Pre-Approved, don’t hesitate to contact us!