We recently listed a 2-story condo and found that many agents and buyers were referring to the home as a townhome, instead of a condo because of its 2-story layout. While this condo may have been townhome style, it was in fact a condo and not a townhome. We took a quick poll around the office and asked “what’s the difference between a townhome and a condo?” What we found is that many people don’t know the answer so we’re here to give it to you. So, what’s the difference? Read on to find out.
In general, condos are part of a larger building, often indistinguishable from apartment buildings. In fact, developers sometimes build buildings intending for them to be condos to sell, and end up deciding to make it an apartment building instead and rent out all of the units. Condos can be on the first floor or the 30th (and beyond), and will always have at least 2 shared walls (including the floor and ceiling). This makes them easily identifiable from townhomes which appear more like single family homes except that they have at least one shared wall with a neighboring townhome. Townhomes are generally mutli-level structures and do not have other units above or below them like condos frequently do.
While each development is different, in general, when you own a condo, you own only the interior of the unit. With townhomes, you own the land your home sits on as well as the land around your unit as well (front and back yard, patio, etc). This also means that as a townhome owner, you are responsible for the maintenance and repairs of these areas. Condo owners are generally not responsible for these things as the property does not belong to them.
Both townhomes and condos will have Home Owner’s Associations (HOAs) and these HOAs, and their dues, will vary for each specific property. Some provide security, insurance, and common area maintenance for the home owners. In general, condo HOA dues are higher in order to cover the maintenance and repair of things such as roof, elevators, and common areas. Both townhome and condos may offer things like gyms, pools, recreation rooms, etc. and these features will affect the HOA dues as well.
Townhome ownership is a great stepping point before owning you first single family home. You are still responsible for the maintenance of your entire property, but you do not have to maintain (or pay taxes on) a large piece of property.
Whether you’re looking to buy a condo or townhome, the Chernov Team is here to help you find your dream home!