Purchasing Your First Townhome -- Costs to Consider

Real Estate GTA Buying Tips and Advice

A townhouse is often seen as a more affordable option for homeownership, especially when looking at the cost of single-family homes of similar size. For that reason, they financially make sense for those hoping to save a bit of money on the purchase of their home. Before you purchase your first townhome, consider the following costs you’ll be facing when the property closes.

Know the Average Cost of a Townhouse

If you’re trying to determine whether the asking price for your unit is a decent price, don’t be afraid of doing some research into neighboring areas. Most real estate agents will offer to show you comparable homes in the area, meaning you’ll be able to determine if the asking price is high or on point with the rest of the community. Have a look at this Townhouse for sale Vaughan listings.

Understand a Seller’s Market

A seller’s market means there are more buyers in the area than there are homes for sale, meaning the pricing power is given to the seller. Another aspect of a seller’s market is the commonality of bidding wars. 

A bidding war is when multiple offers are given for a property, often above the asking price. The offers continue to climb until the seller accepts an offer (or no higher offers come in). Essentially, it puts two individuals in competition with each other for a property. 

Always Get a Home Inspection

Purchasing a home is a major investment. A home inspection works to have the interior and exterior of the unit evaluated by an outside, unbiased individual. Although owners are responsible for the interior maintenance of the unit, many times townhouses have a property management company that is responsible for maintaining the exterior of the townhouse.

A home inspection will bring any problems or repairs to light, which can impact the overall asking price of the unit. Pay attention to any adjoining properties as well. If these units seem to be in poor repair, it will impact your home upon resell.  

Pay Attention to the type of Ownership and Fees

While the overall price of a townhouse is lower than a single-home detached house, maintenance, land, and condo fees can greatly influence the monthly cost of your payment. A freehold townhouse is maintaining ownership of both the interior and exterior of the house. A condominium townhouse, on the other hand, would have the owner keeping only the interior of the unit. A condo townhouse has the corporation maintaining the exterior and common areas, meaning you don’t own the exterior, but often comes with a monthly maintenance fee. Read this comprehensive guide to know about buying a home checklist.

Purchasing a townhouse is often considered an affordable option for first-time homeowners because of the reduced asking prices. It offers a sense of community, making it perfect for those wanting to buy a home but remain close to neighbors.   

Making an informed decision starts with knowing what type of property you’d like to purchase, understanding the value of living within a townhome, and feeling confident in the condition of your potential property.

Anot Group
Feb 13, 2021