Gulf South Real Estate Information Network

TOPICS: Getting Started with the Home Purchase Process

Financial Considerations • Your Credit Report • Type of Home
Size of Home • New Home • Existing Home • Using an Agent

Basic Steps in the Home Purchase Process

Find an Agent • Find a Home • Understand Contract • Make an Offer
Conduct a Home Inspection • Obtain Financing • Go to Settlement

How should I decide between purchasing a house, a townhouse, or a condominium? Your decision depends on how much responsibility you want to take on, as well as personal lifestyle preferences. Below are descriptions and/or the pluses and minuses of each type of home or type of ownership.

House

Pluses	Minuses
Provides most living space Offers greatest amount of ownership & control Do not need permission for changes Most often maintains its market value well	Most expensive option Requires time and money to upkeep
Condominium

Pluses	Minuses
Less expensive option Condo association oversees common expenses and external upkeep	Slower to rise in value Need permission to make changes

Cooperative

Shareholders in a cooperative (or co-op for short) own shares in a corporation. The corporation holds title to the complex, and the shareholder has the right to live in a particular unit. Cooperatives are more common in big cities, where there is a shortage of housing.

Because a corporation owns cooperative buildings, and the people who live in it are shareholders, they tend to be the most selective of all of the housing options. By living in a cooperative, you are agreeing to live by the rules of the corporation -- these cover everything from maintenance of the building to loud parties. The selectivity, however, can be an advantage.

Townhouse

Townhouses are individually owned, but are physically attached to other units. They are usually two or three stories, and may have a small yard attached.

Townhouses are usually less expensive than houses, but have less privacy. Because one or more walls are shared, noise can seep in from neighbors. When looking at townhouses, check the noise level by visiting the place when neighbors are home and active. A townhouse can follow the condominium or co-op management models.

Information deemed reliable but not guaranteed.

Copyright Š 2008 New Orleans Metropolitan Association of REALTORSŽ, Inc. All rights reserved. Information deemed reliable, but not verified or guaranteed. Users are responsible for checking the accuracy, completeness, currency, and status of all information.

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