What are the Best Tips for Buying a Townhouse?

Real Estate GTA Real Estate Market Townhouse

Before getting on to the significant tips for buying a townhouse, let us learn what a townhouse is at first. 

What is a Townhouse? 

Townhouses are personally owned, usually multi-story dwellings, sharing one or two exterior walls with the neighboring real estate property. Townhouses are typically single-family homes connected by a row of similar houses with shared walls, creating a unique architectural feature for nearby streets.  They generally appear in suburban and urban areas with limited space and can be built down to zero plotlines.

Comparatively, townhouses are more affordable than detached houses. Besides, there are many potential benefits of owning a townhome, such as privacy, independence, and your assets are likely to appreciate at resale value. However, townhouses generally operate as apartments, with management agencies such as homeowners associations, and charge expensive monthly or annual fees. 

What are the best tips for buying a townhouse? 

Now let us learn about the best tips for townhouse hunting. Once you clearly get them, you might want to read about what is the difference between condos and townhouses in order to have a clear insight on where your preference should lie. 

1. Hire a professional real estate agent 

Real estate agents can act as sole guides and advocates when buying a home. Your agent can enlighten you with crucial information about buying townhomes in your local market, negotiating on your behalf, and completing all the forms and disclosures necessary to successfully complete the purchasing process. It is important to remember that agents will receive commissions for their work.

Ask in advance about their commissions to create the best possible home-buying budget. Hiring a professional real estate agent is one of the best tips for buying a townhouse. 

2. Find out the average cost of townhouses in your locality 

Before thinking of buying a townhouse, one must always dissolve into in-depth research of the local market. Knowing the average cost of a townhome in your area can help you decide what's the ideal home-buying price in your area and whether it goes hand-in-hand with your designated budget. It is important to note that this is one of the best tips for buying a townhouse and one must always keep it in their checklist.

The average buying price of a townhouse will differ from localities and cities. You may want to carry out the research all by yourself or rely upon your real agent for the same. Read this blog to know the Future of Real Estate in GTA.

3. Get details of the HOA community 

Before deciding on a townhouse, make sure to check the details of the homeowners association; what rates they charge, and what they cover. Several experts believe that HOA fees should be considered throughout the purchasing process.

This is why we include this in our checklist of tips for buying a townhouse as we highly recommend reviewing the HOA rules, regulations, current financial statements, and files for all development projects before purchasing.  The buyers should make their purchase contracts solely after reviewing this information. 

4. Hunt for the best mortgages 

Before fixing any deal, it is important to compare mortgage interest rates with at least three different lenders. We believe this is one of the most significant tips for buying a townhouse and should not be neglected as getting low-interest rates will save you thousands of dollars over the life of the loan.

Always remember that the best interest rate will be for those with the best credit and the lowest debt as a percentage of income. 

5. Get pre-approved for finance 

Many industry experts believe that all home-buyers should get their financing pre-approved before actually buying a townhouse. Getting pre-approved offers many benefits of its own; it can give you a better understanding of what you can afford and can help you compete with other buyers as well.

In addition, it can also help you determine if the HOA rate for a particular townhouse is too high. Due to such wide-ranging benefits, having pre-approved financing is considered one of the most significant tips for buying a townhouse. 

Is buying a townhouse the best option for you? 

Several first-time homebuyers living in the densely populated metro market may find townhouses to be an efficient and reasonably priced option. Townhouses might also be a good option for those who are interested in a low-maintenance lifestyle and want to close and leave the property frequently due to work or other commitments.

In general, if you don't want external homeownership maintenance, but still want to own the accumulation of wealth, then buying a townhouse under HOA is worth the money.

Anot Group
Nov 29, 2021