To summarize, association (HOA) fees are collected to provide a spending account for community expenses, development, and operation. Each complex offers different services and management, so often the communities with low fees provide fewer services. Monthly HOA fees may cover a variety of amenities such as:

- community pool and spa
- clubhouse, rec room and fitness center
- community internet/Wi-Fi
- landscaping and regular gardening maintenance in common areas and/or front yards
- street lighting, landscaping, paving, road maintenance
- exterior building maintenance including painting, landscaping, roof, fences, balconies
- water & garbage utilities
- property liability and casualty insurance covering the grounds and building

If you own a single-family home, all or part of the above would be regular expenditures out of your pocket. With a condo or townhome, the HOA may provide all or part of the same services through association fees. It's good to find out what is covered before you discount the purchase of a particular unit based on "high" HOA fees. Well-maintained complexes with "all" the amenities for a $450 fee may NOT be "too high." After accounting for the monthly costs of utilities and maintenance you won't be responsible for, the HOA dues may be more within your budget than expected.

What's the difference between a condo and a townhouse?

The technical answer is for a condo, you own the airspace of the unit only. With a townhouse, you own an undivided interest in the subdivision.

Usually townhouses will have a small, private yard. Townhouses are more likely to have two to three stories and stairs plus an attached garage, while most condos are single-story (whether on the ground, second, or higher level), and as such often have balconies vs. yards and a shared garage, outside parking or detached garage. There are variations, so single-story, stand-alone townhouses and condos with garages do exist.

Just reduced this morning to $499K! Unbelieveable opportunity to purchase a high-end, energy efficient home effectively 2 years old!

5986 S. Surf Court, San Jose

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Having toured about 20 vacant foreclosures in the past few weeks, here's a gambit of what to expect if you are considering a purchase:

1. Kitchen appliances: Usually anything that could be removed and sold is gone.

2. Winterized properties: Most have all the utilities shut off, so confirming that power, water, and sewer are operational is going to be a chore.

3. Floor coverings: About 9 out of 10 either have thrashed carpet or areas that are bare to the subfloor.

4. Partial remodeling in progress: Aside from the kitchen being appliance-free, many have missing cabinets, missing cabinet doors, missing countertops, mismatched cabinets. Baths can have any number of items removed…or maybe the toilet is in the living room.

5. Sheetrock damage

6. Broken doors: Usually the front door was forced for entry, often side doors or patio doors are boarded from the inside due to being forced. Trim is often missing from door frames.

7. Broken or missing windows

8. Nasty odors: One property had a bedroom that had been converted to a "dog room" complete with wall-to-wall carpet.

9. Landscaping: If you are fortunate to have anything left in the yard other than the prior resident's trash and furniture, it's likely weeds requiring a machete to get through.

10. Mold: If it's not the carpet, likely the bathtub has black grout.

What's the difference between a REO, foreclosure and short sale? I am going to start looking for a home to purchase and would like to know what to target.

An REO is a bank-owned home (Real Estate Owned), basically a foreclosed home. A short sale is still owned by a private party who is trying to sell the home with bank's approval to settle for less than the debt on the home.

Honestly, the best choice for a first-time buyer is a normal sale. The hype involved with getting a "great deal" on a foreclosure is a sales pitch. If you have a contractor in the family or cash to burn, rehabbing one of these REOs may be a good investment. But buying either a bank-owned property or a short sale often limits your ability to inspect the home and obtain background info. Furthermore, the bank will set the terms either way, usually it's as-is without any perks or negotiations in favor of the buyer.

Another item to consider is your lender's requirements. If you are buying with cash, no problem! If you are trying to go with FHA or other lender, many REOs will not qualify due to the poor condition they have been left in.

Look around and compare the overall condition of some foreclosures, short sales, and "normal" sales and make sure you're equipped to take on the possibilities involved before you decide to focus your search.