Should I Buy a Condo or a Townhouse?

Buying a Condo vs. a Townhouse - What's The Difference?

In real estate, there are numerous housing choices. Many of these housing selections have some pretty significant differences. Some have differences, but they are less noticeable.

One such example is comparing a condo vs. a townhouse. Many home buyers and even real estate agents confuse these two housing structures. There are quite a few crucial differences.

Differences include the fees you have to pay, maintenance responsibilities, and simply the property's appearance. You might find differences between these types of homes mean that one will suit your lifestyle more than the other.

So which is right for you?

We'll take a look at the difference between condos and townhouses to make it easier to judge which is best for you.

Townhouse vs. Condo Structures

One of the essential differences between townhouses and condos is the structure. A condo will typically be part of a larger building that contains multiple units.

A condo will be a private residence, with each unit individually owned instead of by a management company or an investment firm like in apartments.

Condos will usually share walls with their neighbors, and there may be other units above and below them. A homeowners’ association will probably manage some community areas and facilities.

If you're leaning towards a condo, here are some of the things to know before making a purchase.

Townhouses are generally built in a row with at least two floors. They might share walls on one or both sides of the home with their neighbors.

A townhouse will contain the typical features you would expect from a detached single-family home. The layout in the house will be similar as well, with a living room and kitchen on the first floor and bedrooms upstairs.

While a townhouse might have two, or more floors, a condo will usually be on one level. However, the condo could be on any floor within a large building, which could put some people off.

The lower floor of a townhouse will typically be on the ground, but there could be a lot of stairs to access the rest of the building.

Whichever type of home you choose, you'll need to be comfortable with these fundamental differences and ensure that they are suitable for your lifestyle.

Ownership Differences Between Townhouses and Condos

With a condo, only the interior is owned by the homeowner. The HOA owns the building, though all condo owners are members of the association.

When someone owns a townhouse, they will own both the interior and exterior of the building, including yard space. This will mean more responsibility for maintenance with a townhouse.

Both types of property can be rented as well as purchased.

Following the Rules

Since you will be living close to your neighbors when you own a condo, the HOA will have a set of rules you need to follow. These are referred to as covenants, conditions, and restrictions and exist to make sure the community is a nicer place to live in.

While these rules should work in the community's best interests as a whole, you could find them overly restrictive. These covenants might prevent you from having the pets you want, for example. There could also be rules about noise, parking, garbage, and other things affecting residents.

Townhouse owners are typically less restricted, even within an HOA. However, townhouse owners are less likely to be in an HOA.

Privacy

Townhouses offer more privacy than condos. With a townhouse, you can only have neighbors on either side of you. With condos, you could also have neighbors on either side of you as well as above and below.

You will also meet your neighbors more frequently when you live in a condo building when you enter or leave.

Fees

If your home is within an HOA, you will have to pay fees to them, and these are typically going to be more expensive for condos, however.

The expenses are higher with condos is because they often have more facilities. In addition, with townhouses, owners often maintain the land around their unit, including mowing the grass, snow plowing, and any landscaping maintenance.

Both condos and townhouses could have special assessments, so it is vital to research this before buying into a community. A special assessment is an added expense that could be very costly.

Home Insurance

In general, condos cost less to insure compared to townhouses. There is more coverage needed with townhouses because the exterior of the properties is included instead of just the interior.

Resale Value

Townhouses are more likely to appreciate more quickly than condos. Buyers often prefer the additional privacy available in a townhouse and the exterior space they offer.

Community Facilities

Condos have more shared spaces in the building, which usually means more facilities. There could be a swimming pool or gym available to condo owners, which is less likely if you're in a townhouse.

Final Thoughts

In comparing townhouse vs. condo, you need to know what you want in a home to make your choice easier. If you like the idea of having community facilities, a condominium could be better, though different developments will offer different levels of facilities and fees.

Hopefully, you now have a much better understanding of the differences between a condo and a townhome.

Bill Gassett is a thirty-two year veteran to the real estate industry. He enjoys providing helpful information to buyers, sellers and fellow real estate agents to make sound decisions. His work has been featured on RIS Media, National Association of Realtors, Inman News, Placester, RESAAS, Credit Sesame and others.