Condo, Townhome or Single Family Home

Condominiums and townhouses have been a significant part of the real estate market for the last 20 years. In fact about one-third of all residential real estate transactions are condos and townhomes. Lofts and flats have many of the same strengths, weaknesses and special considerations. However, as a rule, when it comes to resale townhomes sell more easily than comparable condos. Probably because a condo has more the feel of an apartment, whereas a townhome feels a little more like a house, as you do own the land under it.

Condos and Townhomes

In both instances owners of condos and houses have title of ownership and tax responsibilities and can rent and sell the property they own. In general, condos and townhomes tend to cost less than single family homes which appeals to many first time home buyers, young professionals and some "empty nesters" also like leaving larger houses for the convenience and increased safety and amenities of a condo.  The benefit of most condo and townhome associations, is that the exterior work-such as lawn maintenance-is taken care of for you through your home owner association fees. There is no cutting the lawn, trimming hedges, painting the exterior of the building, shoveling snow, etc. Many condos also have common amenities such as pools, work out rooms, tennis courts, even golf courses.  If you like your free time to be truly free, this may be a great solution for you!

Because condo and townhome owners share ownership for common areas and because of the close proximity of residences, a condo (townhome) owners association establishes by-laws to set certain rules and manage the overall property. A condo or townhome association (group of owners within the condo) is formed to enforce and change by-laws. Usually the board is elected annually. By-laws are usually very extensive and typically cover areas such as noise, pets, common area usage, exterior decoration restrictions, interior renovations, etc. Not too different from a regular home owners association for single family residents.

In addition, the common areas need to be maintained, cleaned and repaired. Financial responsibility for common areas is shared by the owners. Typically there is a portion of the monthly association fee that is set aside to in a fund to cover maintenance, repairs and cleaning. Generally this monthly fee takes into account extended repairs needed in the future. For unforeseen expenses, the association may call for a special assessment for a particular project (a one time fee).

Condo and townhome fees vary greatly and should be considered in determining affordability of a property. These monthly fees are also used to calculate how much home you can afford, so you should have those available to you when speaking with a lender to make sure you can qualify for the purchase. 

Single Family Homes

Everything about a single family home is yours. You have no association rules and no association fees. There is also a tendency for single family homes to appreciate in value more quickly than a condo of comparable size, accommodations and community. With a single family home you enjoy more privacy and more control and have sole responsibility for the property.