Condo vs. Townhome: What's the Big Difference?

If you’re buying a home soon — and you know that you want something other than a traditional single-family home — you’re probably wondering what’s the difference between a condo vs townhome.

Condos and townhomes are similar, but they are two very different types of properties. Buyers looking at listings and comparing condo vs townhome should also know that the purchasing process and homeownership experience can vary greatly between the two property types.

Condo vs Townhome Explained

To help you make an informed buying decision and streamline your shopping process, here is an explanation of the differences between condo vs townhome.

What is a Condo?

A condo, also called a condominium, is a large property that includes multiple units — and each unit is called a condo. Each condo is owned by individual homeowners, so buyers shopping for a condo are purchasing one unit inside of the larger building complex.

The entire property is managed and overseen by a management group, and oftentimes governed by a board of directors and homeowners association. When purchasing a condo, the buyer needs to be approved by the HOA and board of directors in order to move forward with the transaction.

Ownership of a Condo

When you own a condo, you personally own your individual unit. Condo owners have shared ownership of the surrounding property, including shared spaces, floors, walls, and amenities.

As a condo owner, you are only responsible for the care and maintenance of your own unit. The common areas — such as halls, stairwells, and lobbies — are the responsibility of the building management team. Condo owners are responsible for paying a monthly maintenance fee to the building that is used to fund the upkeep of the property.

Special Assessments

In the case that major repairs or renovations are required within the property, condo owners may be asked to pay a special assessment fee. The total cost of the required work is split between the number of condo owners in the building.

For example, if the amount of work done totals $25,000, and there are 30 condo owners on the property, each owner would need to pay about $833 for the special assessment.

What is a Townhome?

A townhome, also called a townhouse, is defined as a property that has at least one shared wall with another adjacent home.

Similar to a traditional single-family home — and unlike a duplex, which has a single owner — each townhome property is individually owned. However, it is not a “detached” home as it shares a wall with another townhome.

The design and orientation of townhouses can vary depending on the neighborhood, but a townhome is typically a two-story home.

Ownership of a Townhome

Unlike a condo — where you only own the interior space of your unit — townhome ownership includes rights to the entire property and land.

This includes the interior of the townhome as well as the exterior of the home and the plot of land that the property is built on. As a result, owning a townhome gives you exclusive ownership of the entire property, similar to that of a traditional detached single-family home. However, the price of a townhome is typically lower than a stand-alone home, making it an affordable option for homebuyers on a budget.

Costs of Care and Upkeep

As the owner of the townhome, you would be responsible for the care and maintenance of the property’s interior, exterior, and land — including the front lawn and the backyard, if included in the property.

As a result, the regular costs of care for the townhome property may be higher than that of a condo. However, townhome owners do not have to worry about sudden special assessment fees that condo owners may be subject to paying upon request of the building management.

You Need The Right Agent

While you’re debating between buying a condo vs townhome, the most important thing to remember is that you need to work with the right agent.

Whether you’re buying a condo or townhome, make sure that you select an agent that has experience in purchasing the property type in your local area. This ensures that the agent fully understands the subtle nuances involved in purchasing each type of home, making them equipt to facilitate a successful deal on your behalf.

If you’re wondering how to find the best agent in your market, look no further than RealEstateAgents.com.

By comparing data from millions of home sales, RealEstateAgents.com rates agents in your target neighborhood by their performance. This makes it easier for you to know which agent would be a good fit for both you and your deal.

To begin browsing the top agents in your community, click here.