What is a Townhome?

No matter what kind of townhome it is or why you choose your particular community, most townhomes are very similar, so what is a townhome? For example, you can expect to find a garage or carport for parking vehicles and a relatively large outdoor space, along with each unit being attached to one another. As far as living space goes, most townhomes have similar layouts as they are built-in uniform rows.

The cost is one of the major benefits and perhaps con of a townhouse. Townhomes are typically less expensive than a house of similar size. This is because they have shared walls, common shared areas and some other features that allow the overall community to either collect an HOA or not.

What is a Townhome?

They're also easier to maintain for an owner due to the fact that they generally charge a home owner association fee. The local HOA will maintain many of the communal areas around the property. Townhouses that are part of a complex may also come with amenities like a shared pool or gym.

However, some people don't like the restrictive nature of the homeowners association, who have some say about what you do with the property. The multi-floor layout with lots of stairs may prove to be a challenge for some homeowners unless you are lucky enough to have an elevator.

Overall, townhomes can be an excellent option for first-time buyers. If you are currently looking to buy a property, get in touch with MortgageQuote.com and we can try to help you get pre-approved for a loan. If you are ready to get things moving as soon as you find the perfect home then reach out to us to further discuss.

Who is a Townhome Suited to?

Looking to get on the property ladder with a private home that also offers community amenities? Find out why a townhome could be the perfect choice today. When purchasing a home, you aren’t only buying a property, You are investing in a new chapter in your life, which is why you must find the right style of property. Townhouse properties have grown in popularity, not least because you can get a different experience for your money at a time when house prices have soared to an average of $423,600 for the 4th quarter of 2021 and 2nd quarter of 2022 and a median of $440,300, while offering a fantastic choice for all demographics. The 2nd quarter of 2020 in comparison the median was $322,600 while Q2 of 2000 was $163,200.

A townhouse seems to combine the benefits of single family home living with the convenience and amenities of condo living. The townhome may provide a good amount of private internal rooms and space, as well as some private outdoor space. Meanwhile, the shared amenities can help promote a healthy and happy lifestyle without worrying about maintenance. The community vibe - while still having privacy inside your property - is another popular feature.

While the HOA can have some influence on the aesthetics, such as what colors are permitted for the exterior, you may or may not own the exterior property and the private land to the front and rear will provide, reach out to the HOA to see if you can have an extra layer of control of your property. That’s whether you buy the property outright in cash or get a mortgage to complete the purchase over the next X number of years.

Townhomes are widely available across the nation as they have benefits and features that people tend to like. Therefore, if this style of property appeals to you, it will not be difficult to find a townhouse that ticks all the boxes in the location where you want to live.

How to buy a Townhome?

Generally speaking, a townhome will offer a more affordable and accessible way to step onto the property ladder without living in an apartment block or condo, keep in mind there are plenty of luxury townhomes , so prices can be in the jumbo loan category. However, any prospective townhouse buyer must know what to expect from the process ahead. Use the following checklist, and you won’t go wrong;

Finding a dream townhome is one thing, but you also need to know that the property is within your budget. While this type of property is usually more affordable than other houses of similar characteristics, it’s imperative that you research your mortgage options. From knowing how much a lender will let you borrow to understanding the debt-to-income ratio and general affordability, Mortgage Quote’s mortgage calculator should provide the clarity you need while also helping you find potential programs for your townhouse purchase. The mortgage calculator can also help you guide you to calculate a mortgage payoff or just simply give you strategies for paying it off.

The other aspects of purchasing a townhome are largely the same as any other property type. You can choose a real estate agent/broker or not, make a bid, arrange surveys if needed, and go through the same general legal procedures to gain ownership of the property via a title agency, roughly the same process as a detached single family home and you will subsequently need to plan for moving day. After that, you’ll be ready to enjoy your new townhouse and start making it a home.

Sources

What is a townhouse?

Should You Buy a Condo, Townhouse, or House?

Average down payment savings in the U.S.

Median Home Price