In this blog, we will cover buying townhouse versus single-family homes. Buying a townhouse has its advantages over purchasing a single-family home for certain homebuyers. For homebuyers who travel a lot or want to live in a home community where they do not want to worry too much about maintenance, a townhouse or condominium may be a better fit. For folks who want privacy and a larger yard, a single-family home may be a better option.
Do All Townhomes Have HOA Fees?
One of the first things that come to mind for first-time homebuyers who want to purchase a starter home with a lower monthly mortgage payment is to purchase a townhouse versus a single-family home. First-time homebuyers thinking a townhome will cost them less in monthly housing payments need to reconsider the cost of a townhome versus single-family home ownership. Almost all townhome communities will have homeowners association dues. HOA fees vary from community to community.
How Much Are HOA Fees In Townhouse Community?
There are townhome communities where the HOA dues can be higher than the PITI. Depends on the amenities and the services that come with living in the particular townhome complex. In the following paragraphs, we will lay out the benefits and cons of buying townhouse versus single-family homes.
Is Buying a House Now a Good Idea?
Home prices have been skyrocketing in the past several years. Just in the past 12 months, home prices have jumped 14% percent. 14% increase in home prices in just one year? Will this trend continue? Will there be another housing bubble? Many homebuyers are being priced out of the housing market. One frequently asked question from our viewers and homebuyers that gets asked daily is whether buying a home right now is a good idea. Ronda Butts, a licensed real estate agent who is also a licensed mortgage loan originator said the following:
There are townhomes and condominiums that are still priced affordably. Townhomes and condos are becoming increasingly popular in today’s booming housing market. In this article, we will discuss the benefits of buying a townhouse versus a single-family home.

Comparing The Benefits Of Buying A Townhouse Versus A Single-Family Home
http://www.youtube.com/watch?v=QIGZ05KL1kM&ab_channel=Gustan Cho Associates-MortgageBankers
Buying Townhouse Versus Single-Family Homes is one of the main decisions homebuyers face. There are pros and cons to Buying Townhouse Versus Single-Family Homes. Some questions are how long are you planning on living in your new home?
Is privacy a concern? How much are the monthly payment differences when Buying Townhouse Versus Single-Family Homes? What life changes will your new home purchase have to accommodate in the near future? Homebuyers need to compare the pros and cons when deciding on Buying Townhouse Versus Single-Family Homes.
Do Townhomes Appreciate In Value Like Single-Family Homes?
Many prefer buying a single-family home but think it is cheaper to buy a townhouse. This is not true. Most condos and townhomes belong to a homeowners association. Monthly HOA fees can average more than $400 per month. $400 per month housing payment towards HOA fees is equivalent to an $80,000 mortgage loan balance.
Features When Buying Townhouse Versus Single-Family Homes
There are structural differences when Buying Townhouse Versus Single-Family Homes. Townhouses are attached to one another. It shares common walls from one unit to another. Single-Family Homes are detached properties. Single-Family Homes do not have shared walls and sit on their own lot. Owners of single-family homes have front and back yard space. Townhomes are limited to outdoor space.
Townhomes are built within a common development community. There is a homeowners association. Townhome owners get charged homeowners association dues. HOA can vary anywhere between $100 to $1,000 or more depending on the townhome community. The HOA sets rules and enforces the by-laws of the association. The HOA contracts with third-party vendors such as maintenance, landscaping, plowing, scavenger services, and other third-party services. The cost of these services is included in homeowners association dues.
What Are The Pros and Cons of Living In Townhomes
Ronda Butts points out a few disadvantages of buying townhouses versus single-family homes. Here is what she said about buying townhouse versus single-family homes in a recent seminar she held in Orlando, Florida:
Townhouse owners cannot pick and choose the color of their exterior. The homeowners association has strict rules on what color the walls can be painted. Many HOAs do not allow owners to rent their townhomes. Need to check with the homeowners association whether or not owners can keep their townhouses as rentals if they decide to purchase another home. Another restriction that is placed by HOA is the type of pets they can have. HOA can dictate that pet owners cannot have a dog heavier than 35 pounds. Trucks and RVs are often not allowed in townhome communities.
Cost Differences Buying Townhouse Versus Single-Family Homes
Many first-time homebuyers are more inclined to Buying Townhouse Versus Single-Family Homes because they believe townhomes are cheaper. This is not necessarily the case. Detached homes do not have homeowners association dues. Townhouses do. Average HOA Fees on townhouses are $400. A $400 monthly payment is equivalent to $80,000 in buying power.
Whether a home buyer purchases a $100,000 townhome with $400 HOA Dues or a $180,000 detached home, their monthly mortgage payment will be the same. When comparing housing costs on townhomes versus detached homes, make sure to compare HOA dues versus no HOA dues. There are many factors to consider when deciding to purchase a townhouse or detached home. Talk to family, friends, and especially your realtor.
Townhouses are normally built in urban areas and are smaller than homes. Folks who do not want to be very close to their neighbors would benefit from single-family homes versus townhomes. Illinois Realtor Karry Razik, a very popular experienced veteran with Remax First Class in Orland Park, Illinois, issued the following statement:
Communities In Townhouses Versus Detached Homes
Townhomes are built within a common development community. There is a homeowners association. Townhome owners get charged homeowners association dues. HOA can vary anywhere between $100 to $1,000 or more depending on the townhome community. The HOA sets rules and enforces the by-laws of the association. The HOA contracts with third-party vendors such as maintenance, landscaping, plowing, scavenger services, and other third-party services. The cost of these services is included in homeowners association dues.
What Are The Pros and Cons of Living In Townhomes
Ronda Butts points out a few disadvantages of buying townhouses versus single-family homes. Here is what she said about buying townhouse versus single-family homes in a recent seminar she held in Orlando, Florida:
Townhouse owners cannot pick and choose the color of their exterior. The homeowners association has strict rules on what color the walls can be painted. Many HOAs do not allow owners to rent their townhomes. Need to check with the homeowners association whether or not owners can keep their townhouses as rentals if they decide to purchase another home. Another restriction that is placed by HOA is the type of pets they can have. HOA can dictate that pet owners cannot have a dog heavier than 35 pounds. Trucks and RVs are often not allowed in townhome communities.
Cost Differences Buying Townhouse Versus Single-Family Homes
Many first-time homebuyers are more inclined to Buying Townhouse Versus Single-Family Homes because they believe townhomes are cheaper. This is not necessarily the case. Detached homes do not have homeowners association dues. Townhouses do. Average HOA Fees on townhouses are $400. A $400 monthly payment is equivalent to $80,000 in buying power.
Whether a home buyer purchases a $100,000 townhome with $400 HOA Dues or a $180,000 detached home, their monthly mortgage payment will be the same. When comparing housing costs on townhomes versus detached homes, make sure to compare HOA dues versus no HOA dues. There are many factors to consider when deciding to purchase a townhouse or detached home. Talk to family, friends, and especially your realtor.
October 6, 2022 - 4 min read