The process of buying a newly built townhome is almost identical to the process of buying a new construction detached home.
The process of buying a newly built townhome is almost identical to the process of buying a new construction detached home.
If you’re shopping for a townhome, here are a few differences that you should know about before you pull the trigger on buying one.
Your Builder Determines the Exterior Aesthetic
One huge difference is that, with a townhouse, you won’t be able to buy your own lot and contract with a custom home builder to design and build a home specifically for you. Custom-built detached homes are, well, detached from other residences; townhomes are not. When you buy a townhome, you’ll select a location where you want to live and a builder that you like that has built or plans to build townhomes that fit your needs at that location.
“A builder will own the units as a whole as they are all attached by one, if not two, adjoining common walls. Due to this reason, you won’t have a choice of builder as much as you will choose a location.”
—Kurtis Forster, Real Estate Agent and Team Leader at Nu-Vista Premier Realty
If you purchase a new home, you’ll have a say in your home’s exterior architecture and design. That’s usually not the case if you buy a townhome. Since a townhome builder builds all the townhome units in a community at once, because of the shared walls, homeowners do not get to decide how they want to design the outside of their specific unit.
“The builder will have preset the design of the exterior of the buildings down to color and siding options. This is intended to provide a uniform and aesthetically pleasing building.”
—Kurtis Forster
Interior Design Can Be Flexible
When you buy a townhome, you may have more choices for the interior than you will for the exterior, but again, your choices won’t be unlimited.
“There may be slight variations available; however, the majority of the rooms and layouts will be standard to each townhouse. The majority of the options available will be aesthetic only.”
—Kurtis Forster
Limited options may make buying and building a new townhouse easier and more affordable than buying a detached new-build home. Even though you have fewer choices during the construction process, you still get to personalize the interior of a townhome. Homeowners often have control of their paint colors, flooring, window coverings, finishes, and fixtures.
What You Need to Know About Townhouse HOAs
Most townhomes are part of a homeowner’s association (HOA), which collects monthly dues from the homeowners in return for managing shared walls, community amenities, and exterior maintenance. An HOA also creates and enforces rules for the community and its homeowners.
Understanding CC&Rs
Some community bylaws aim to create a pleasing uniformity of homes in a community, the way similar HOA rules operate in new home communities. These rules are called covenants, conditions and restrictions, or CC&Rs. If you purchase a townhome with these types of rules, you may be limited in your ability to remodel your home’s exterior, interior, or both, even after you buy it. In some communities, you may have to submit your plans to a design review board and get their permission before you remodel your residence.
“Typically, condo townhomes offer a more affordable path to homeownership; however, homeowners need to keep in mind the maintenance fees that come along with them and budget accordingly for this monthly expense.”
—Angat Saini, Principal Lawyer at Accord Law
Townhomes can be more affordable and come with less responsibility for maintenance. The tradeoff is that you have to accept the builder’s choices for your home’s design and be willing to follow the HOA rules when you want to remodel.
If that sounds like a good arrangement to you and you’re comfortable with these differences in the home-buying process, a newly built townhome may be the perfect housing choice for you.
