Is A Townhouse Right For You?

Many first time buyers decide to buy because their income is finally stable and sufficient, they have reached a place in life where they’re able to save, or they are tired of throwing away money on rent. When the time comes to buy, many buyers are unsure of what they want – they just know they want to buy. One of the most difficult decisions is deciding what type of home is the best fit for the buyer; often times because budget varies between the styles of homes available in a market area. In Houston, we have three common types of homes: houses, townhouses and condominiums. They all have distinct differences, but there are some overlapping commonalities that can make differentiating the three difficult (even some Realtors will incorrectly label a home style on the MLS (multiple listing service.)) To help clear up some of the confusion, I have put together detailed descriptions about these three styles for future buyers.

Houses
Houses are free standing, single family (1-4) structures of 2 or more bedrooms. They may or may not include a garage – attached or detached. Houses can have any number of floors, but more often are 1 to 2 levels. With a house, the owner also owns the land and the entire property is insured from line to line, inside and out from the ground to the roof. A house is probably the easiest to recognize as we all have spent time in one. Houses range in styles such as bungalows, ranch-style (rancher), traditional, historic, modern and contemporary. According to HAR.com, during the last quarter of 2021, the average sales price of a free standing house in central Houston was $871,933 with the lowest sales price being $265,700 and the highest coming in at $8,400,00.

Townhouses
Townhouses are also single family and may be free standing or attached with their own roof, are usually found in groups, and are at least 2 levels (up to 4 levels) with at least 2 bedrooms. They usually also include an attached garage. Regardless of it being attached or free standing, the owner also owns the land beneath the home, and is also insured from top to bottom, inside and out. Townhouses are found in denser neighborhoods where you’ll also find more walkability. Most townhouses are going to be traditional or modern in style. The community is often gated, but private yards are difficult to find. In cities other than Houston, the term townhouse may also apply to a condominium, but in Houston a condominium is a very different thing. Townhouses are much more affordable than traditional houses with the average sales price in central Houston during the last quarter of 2021 being only $451,511. The low was $92,000 and the highest at $1,450,000.

Condominiums
Condominiums are individual units of a multi-family (5+) mid or high rise with shared walls under only one roof. Most condominiums are only 1 floor, but some may have up to 3 floors. Typically, a condominium will be assigned parking spaces in the shared parking garage or surface lot. However, some condominiums that are 2 or more levels include a private garage or carport. Because multi-floor condominiums with garages resemble townhouses, the two are often confused. The difference lies in that with condominiums the roof and land are shared. With a condo, the owner of the unit does not own the land beneath the building, and his insurance only covers the inside of the unit. All owners are members of a condo association and pay a monthly fee for exterior maintenance and repairs. Condominiums are found in very dense areas such as downtown, but can be found all over the city, too. A condominium may be a luxury building with top notch finishes, concierge, valet and other amenities, could also be modern in style or it could strongly resemble an older-style apartment. Condominiums often have the best sales price, but always come with monthly or annual maintenance fees which could result in costs similar to that of a townhouse. The average sales price of a condominium during the last quarter of 2021 was $231,597 with the lowest being $105,500 and the highest only $450,000.

Your budget may be a major player in determining which style of home is the best purchase for you. However, keep your options open to all types when searching for homes, especially since the similarities they share could result in a townhouse being listed as a condo or a house listed as a townhouse. When you’re ready to buy your first (or next) home, I’ll be here ready to answer questions and guide you through the process.