WEBVTT - How does residential real estate work?

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<v Speaker 1>stuff works dot com where smart happens. Hi Am Marshall

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<v Speaker 1>Brain with today's question, what is the difference between a house,

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<v Speaker 1>a mobile home, a condominium, a co op and a

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<v Speaker 1>town house. The world of residential real estate is huge,

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<v Speaker 1>and if you're in the market to buy a home,

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<v Speaker 1>it can get a bit confusing because there's so many

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<v Speaker 1>different ways to buy a home. Let's take a look

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<v Speaker 1>at the five main forms that a non rental home

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<v Speaker 1>may take and try to sort out the differences. First,

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<v Speaker 1>you have a house. When most of us talk about

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<v Speaker 1>a house, we're referring to a free standing single family residents.

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<v Speaker 1>There's also such a thing as a duplex that the

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<v Speaker 1>free standing structure divided into two connected single family units.

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<v Speaker 1>The main defining characteristic of a house, besides its free

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<v Speaker 1>standing nature, is the breadth of ownership responsibility taken on

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<v Speaker 1>by the buyer. The owner of a house owns the

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<v Speaker 1>building itself as well as the land, and it is

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<v Speaker 1>therefore responsible for all upkeep associated with those areas, including

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<v Speaker 1>lawn and landscape maintenance, painting repairs, redoing, the roof and appliances,

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<v Speaker 1>the real estate taxes, and everything else. Sometimes houses may

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<v Speaker 1>be grouped together in a definite community or subdivision that

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<v Speaker 1>has shared spaces, such as a pool or a playground.

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<v Speaker 1>In these communities, homeowners pay a fee to a homeowners association,

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<v Speaker 1>which maintains the shared spaces and may provide such services

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<v Speaker 1>as lawn care, landscaping, and security. The homeowners association sets

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<v Speaker 1>rules and regulations for the community, some even pertaining to

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<v Speaker 1>the aesthetic appearance of the houses, so you might not

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<v Speaker 1>be able to paint your house a certain color because

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<v Speaker 1>the homeowners association doesn't let you. A town house is

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<v Speaker 1>like a house and that the owner owns both the

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<v Speaker 1>structure and the land on which it sits, but it's

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<v Speaker 1>not free standing, so the land on which it sits

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<v Speaker 1>is usually limited to the front and back yards. Town

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<v Speaker 1>Houses are connected to one another in a row and

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<v Speaker 1>are usually two or three stories tall. They share many

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<v Speaker 1>of the characteristics of a condominium. A condominium is like

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<v Speaker 1>a townhouse in that the units are attached to each other,

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<v Speaker 1>but if you own a condo, you do not own

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<v Speaker 1>any land. A condo owner owns only the unit itself,

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<v Speaker 1>which is taxed as an individual entity, and sometimes a

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<v Speaker 1>percentage of the common areas of the community. Condo communities

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<v Speaker 1>may provide such shared facilities as a pool, a gym,

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<v Speaker 1>tennis courts, a clubhouse, all maintained by the condo association,

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<v Speaker 1>which also takes care of all the day to day

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<v Speaker 1>management tasks. This is one of the advantages of condo living.

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<v Speaker 1>It's all the joy of using the amenities, but none

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<v Speaker 1>of the hassles of maintaining them. Condo owners pay a

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<v Speaker 1>monthly fee to the condo association, which also sets the

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<v Speaker 1>rules for the community. Then there's the cooperative or the

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<v Speaker 1>co op. The main difference between condos and co ops

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<v Speaker 1>lies in the specifics of ownership. If you own a

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<v Speaker 1>co op, you don't own the unit itself. Instead, you

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<v Speaker 1>own a share in the cooperative corporation. This share gives

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<v Speaker 1>you the sole right to your living space, but it

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<v Speaker 1>doesn't give you ownership of it. For this reason, your

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<v Speaker 1>real estate taxes maybe covered by your co op membership

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<v Speaker 1>because the building is taxed as a whole. Co Op

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<v Speaker 1>members pay a monthly fee of the corporation, which, like

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<v Speaker 1>the condo association, maintains the building and all shared spaces

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<v Speaker 1>and handles daily management tasks. A co op is generally

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<v Speaker 1>stricter about screening perspective buyers and has more say in

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<v Speaker 1>the handling of your own unit. Also, a co op

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<v Speaker 1>maybe more difficult to finance than a condo, because co

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<v Speaker 1>op corporations may deal only with certain banks. And finally,

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<v Speaker 1>there's the mobile home. The clear distinguishing characteristic of a

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<v Speaker 1>mobile home is that it's mobile. It can have wheels,

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<v Speaker 1>and it goes down the road when it's being installed.

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<v Speaker 1>Mobile homes are sometimes called manufactured homes. Buying a mobile

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<v Speaker 1>home is similar to buying a car. Sales tax applies

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<v Speaker 1>and you receive a title of ownership. Mobile homes, unlike

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<v Speaker 1>other forms of housing, depreciated value as cars do. You

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<v Speaker 1>can put a mobile home on your own piece of

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<v Speaker 1>land where it acts a lot like a house, or

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<v Speaker 1>you can put it in a mobile home park. Land.

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<v Speaker 1>Own ownership is handled differently in different parks. In some

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<v Speaker 1>you must buy the lot for your home, and others

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<v Speaker 1>you lease it instead of buying it, and in others

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<v Speaker 1>you don't buy the land at all, but instead purchase

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<v Speaker 1>a share in a corporation, much like a co op.

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<v Speaker 1>Property taxes are handled in various ways depending on these distinctions,

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<v Speaker 1>like condo communities, co op buildings, and town homes. Mobile

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<v Speaker 1>home parks have rules that must be followed by the residents.

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<v Speaker 1>For more on this and thousands of other topics. Because

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<v Speaker 1>at house staff works dot com, streaming TV shows and

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<v Speaker 1>movies directly to your home is a breeze with Netflix.

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<v Speaker 1>As a Netflix member, you can instantly watch TV and

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<v Speaker 1>movies on your PC, Mac, mobile device, or right on

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<v Speaker 1>today