What are the differences between a condominium, a townhouse and a co-op?

A townhouse is a style of construction, whereas condominium and co-op are types of ownership. A townhouse is basically a building or unit that shares a common wall with the building or unit next door. The walls are usually straight and entry is usually from the ground floor. Townhouses usually have two or more stories. A townhouse can be a style of condominium

A condo is where you own the actual structure of the building jointly with the other members of the association, along with common areas such as swimming pools, tennis courts or other common areas. Individually, you own the airspace and interior of the structure, but not the building itself. You and the other members of the association own the structure together.

A co-op is where you own shares of a corporation or organization that owns the larger structure, and ownership of those shares gives you the right to occupy a specific unit or apartment.

What's the difference between an appraisal and a comparative market analysis?

An appraiser, who should be certified, will appraise your house based upon an analytical approach of where the market came from for similar houses in the neighborhood. Usually appraisers are hired by the lender/bank you are getting your loan from to make sure, in the event of default, the bank has some ability to recoup its investment.

Always get an appraisal upon time of death for tax purposes if you inherit property. Also, if transferring property amongst family members, get an appraisal as well. It's helpful to have a static number as opposed to a range you might get with a CMA.

A comparative market analysis, CMA, is typically done by a REALTOR and is both a snapshot of where the market came from but also, includes an opinion of what the house could sell for based upon where the market is headed. In moving markets, this could be significant one way or the other. REALTORS have a pulse on market subtleties usually better than an appraiser.

Sellers should use a CMA over an appraisal to assist in determining list price, unless a house is so unique to require an appraisal, as ultimately it is the buyer who determines sale price. This is one place a seller can and should save money. The buyer can use CMAs to help negotiate the sales price of a house especially in markets with less movement. However, with financed property a buyer will be responsible for paying the appraiser whether out-of-pocket or incorporated into the loan.

I'm an all cash offer. Should I still get title insurance?

Title insurance is always required by a lender for your loans, but not necessarily for a cash sale. I say why do this? It's like driving a car without car insurance. You don't need it until you need it. Title insurance covers you in the event someone (relative who didn't know Aunt Millie died but has a letter from Aunt Millie stating she will receive a portion of her house as inheritance or an old Bank of America note from 1963-which I have seen) suddenly appears out of the blue and makes a claim on title. Without title insurance, you are fair game with no title company representation to spread the risk protection. This is a case of pound foolish and penny wise. Always get title insurance!

How can I figure out exactly what my costs as a buyer or my profits as a seller are going to be above and beyond the purchase price?

There are so many variables in closing costs that range from how many people need to be paid off (costs incurred include courier/wiring/notary); square footage of the house (buyers won't know that until they make the offer)--that it is often difficult to be completely precise with closing costs. Start with either an estimated net proceeds statement from the title company as a seller or an estimated cost statement from both the title company and the lender as a buyer; and know that it is an estimate. My experience is such that there could be a couple of hundred dollars in fees (either way) that show up on final estimated statements. Always check your final HUD statement against your estimted statement to check for differences and call me as your advocate and the title company or lender who is responsible for those differences. However, buyers should roughly plan on about 1% of the purchase price for closing costs.

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