Condos, apartments, and townhouses might seem interchangeable at first glance, but the differences are crucial when deciding which one is right for you.
Whether you’re drawn to the low-maintenance lifestyle of a condo, the rental flexibility of an apartment, or the houselike perks of a townhouse, understanding what sets them apart can help you make the smartest choice for your needs.
Let’s look into the details of each so you can narrow down your options and feel confident about your next move.
What is a condo?
Short for “condominium,” a condo is a private residence within a larger building or complex.
The first condo in the United States was built in Salt Lake City in 1960, according to Matthew Gordon Lasner, author of “High Life: Condo Living in the Suburban Century.” Since then, this residence style has truly taken off.
Often a good option for first-time buyers or those looking to downsize, condos might look like a lot of other types of real estate you may have heard of—like apartments or co-ops—but condos have their own distinct features, rules, pros, and cons.
Condominium rules and regulations
Since a condo is part of a larger residential structure (although “detached condominiums” also exist), condo residents typically share certain common areas and amenities with their neighbors.
This means you and your neighbors might park in a common parking lot or garage. You might also use the same rec room or roof deck, or bump into one another at the condo complex’s swimming pool or gym.
Furthermore, all condo members enjoy these shared areas and amenities without the need to maintain them on their own. Instead, condo owners pay dues to a board (typically made up of elected condominium owners) that then handles the hiring of landscapers, pool cleaners, and other professionals for anything that must be maintained or fixed.
How much is the condo fee per month?
Average condo fees range from around $100 to $700 a month. However, these fees can go much higher based on the amenities they cover. If the condo complex has high-end shared features such as a swimming pool, gym, and spa, fees can be several thousand dollars per month.
We totally get why people buy condos: They’re cheaper and require less maintenance than a traditional house (no mowing the lawn). Plus, they’re often stacked with cool common amenities from pools to gyms. What’s not to love? Yet, while condo living might seem carefree, buying one is not necessarily a simple task.
Here’s how to buy a condo, how it differs from buying a house, and a few insider tips to pave the way to ownership.
Consider your unit’s surroundings
While the condo unit itself is a key consideration, it’s also important to carefully check out the environment around it—particularly when it comes to noise. Remember, you’ll be sharing walls with your neighbors and perhaps even ceilings and floors.
“I always suggest my buyers book a showing during typically ‘louder’ times of the day, such as dinnertime when kids are home, to see how well the walls actually dampen the noise,” says David Nelson with the Imperial Home Team in Minneapolis.
He also recommends asking a few of the neighbors about general property noise, such as how loud the traffic and surrounding neighborhood are, and if they can hear their neighbors through the walls.
The unit you choose can play a large role as well.
“End units share fewer walls than those in the middle, which can lessen neighbor noise,” says Nelson. Of course, that’s also one of the reasons why end and top-floor units are more coveted—and often pricier—but if you’re sensitive to noise, that could be money well spent.
Check out the condo board and association
When you buy a condo, you’re buying into the entire community—including its rules on everything from when and where it’s OK to let your dogs off the leash to whether RVs are allowed in your driveway. Most states will have a designated rescission period to peruse relevant documents. During this period, you’ll want to carefully read through the CC&Rs, as well as the penalties for not following them.
“When a buyer agrees to the association documents, he or she is automatically bound to the condo board’s rules,” says Nelson. These typically entail parking space allowances, regulations related to pets, and homeowner responsibilities for repairs and maintenance.
“If there is something in the association bylaws that you as a buyer don’t agree with, and it is still within the rescission period, you can back out of the home purchase and usually get a full refund of any earnest money,” says Nelson.
Prospective condo buyers should also do their due diligence on the condo association’s finances because this will affect your odds of getting a loan (more on that next).
Secure condo financing
In some cases, it can be trickier to secure a mortgage for a condo than a traditional home because the condo development’s financial health depends on multiple owners paying their bills.
Your mortgage lender is apt to conduct a thorough review of the condo complex as a whole, including documents relating to the overall health of the building and the condo association. The good news is that you can consider this an extra layer of due diligence to protect your investment.
