Single-Family Homes

A single-family home is probably the most common dream for prospective home owners. If this is the type of house you're looking for, you have a choice of buying a newly constructed house, or an older home in an already established neighborhood. Both new construction and older homes offer advantages to the first-time home buyer. Older homes may be roomier and more affordable, and may offer better location. On the other hand, a new home likely has a more efficient heating system, better insulation, and lower maintenance costs, probably for several years, since everything is brand new.

If you are buying an older home, you may be able to negotiate the sales price if the property is in need of repair. But remember, you take on the responsibility for those repairs, which could require significant investments of your time and money.

Condominiums

A condominium is a single-unit in a multi-unit property. Pluses for condo ownership are low maintenance and the benefit of homeownership with the freedom of apartment living. Keep in mind that though you will have your own private space with a condo, you will also share common areas with the owners of other condominiums in your property.

As a condo owner, you may be asked or may wish to serve on the condo association board. This involves overseeing the collection of fees, upkeep of the grounds, maintaining cash reserves, and managing both emergency and scheduled repairs.

Two- to Four-Family Homes (Multi-Family)

Purchasing a 2- to 4-unit (Multi-Family) property provides you with both an investment property and a personal residence. Along with the possible tax and income advantages of multi-family properties come the numerous added responsibilities you take on as landlord. These responsibilities include tenant search and selection, leases, security deposit procedures, possible evictions, and emergency repairs.

Fixer-Uppers (The Handyman Special)

During your search for a home, you are sure to find many houses that can be described as fixer uppers (often referred to as the handyman's special). Fixer-uppers are generally older homes in need of updating and repair. These homes are often in older—and thus more established— neighborhoods, but have suffered from neglect over a long period of time.

If you decide that a fixer-upper is for you, be prepared for the numerous costs involved in doing the rehabilitation work. Once work begins, you may uncover significant structural or design defects. Suddenly, your out-of-pocket costs for rehabilitation could rise significantly, as could the amount of time needed to get the house in good working order.

If you decide on a fixer-upper, MassHousing recommends that you have a contractor or home inspector detail the full extent of the rehabilitation work, and estimate the costs involved. You should do this before you make your offer to purchase. The amount it will cost to repair the fixer-upper will directly impact the price you pay for the house.