Townhome vs. Condo

Off Topic
1

Currently looking @ places here in central MN.

I found a great looking place. 3 bed, 2.5 bath full finished basement. 1740 sq ft.

I was asking the realitor the differance between a townhome and a condo. And I could not make sense of what he was saying.

This place is a condo.

So if someone could explain to me the differance betweena townhome and a condo I would appreciate it.

Thanks

2

Townhome describes a type of building or physical unit, usually one with 2-4 floors (walkup) that can either be used by a family or potentially more than 1 family. Picture a brownstone building (though it needn’t actually be brownstone) in a semi-urban area, like where the Cosby Show was set, and you get the idea.

Condo (condominium) refers to a legal/ownership definition (with coop being the other most common example), NOT to a particular type of physical structure. You can have a condo (or a coop) that’s one apartment in a high-rise that contains hundreds of them, or that’s part of a townhouse, or any other physical structure you can think of.

Condominium:

  1. A building or complex in which units of property, such as apartments, are owned by individuals and common parts of the property, such as the grounds and building structure, are owned jointly by the unit owners.
  2. A unit in such a complex.

Cooperative:

Definition: A co-op is a housing community that is jointly owned and managed by those who live in it. Each member buys shares in this community, attends regular meetings to discuss maintenance, social events, or other community matters, and helps run the co-op. Members can participate in specific committees or be on the board.

If you buy a coop (usually an apartment or unit within a larger building – which can likewise be the physical arrangement with a condo), you often have to get approved by the coop board before you’re allowed to buy into it (so that your financials meet their criteria, maybe your lifestyle and personality meet their criteria, etc.), you have to pay coop dues, you might have to follow certain coop rules (like carpeting at least 80% of your floor area so as to keep noise levels down), etc. In a condo, on the other hand, you pretty much own the thing and make your own rules, unless the building that it’s in happens to have its own set of rules.

But the main difference is that in a coop you’re technically buying a “share” of this cooperative thing (which allows you to live in one unit of the building), like buying stock (shares) in a company, as opposed to buying physical real estate, so to speak. In buying a condo, you are buying a physical unit, technically.

3

So is one better then the other when it comes down to ownership or selling it in the future?

4

[quote]MNguns wrote:
So is one better then the other when it comes down to ownership or selling it in the future?[/quote]

All other things being equal, it is generally preferable to have a townhouse in terms of resale. Condos cover exterior maintenance and sometimes offer amenities like pools and gyms. Some cover utilities as well. For that you pay a monthly condo fee on top of your mortgage payment. Condos are generally lower maintenance.

5

Um . . . you’re comparing apples and corn stalks here. A townhouse can be a condo. Or it can be a coop. Or it can be neither, i.e. its own individual piece of real estate, like any other freestanding house.

As for what’s covered when you buy a condo regarding amenities, maintenance, etc., that aaaaall varies from one situation to the next.

As for resale value between condos and coops, it really will vary a bit from one market to the next, but as a very, very loose generalization, people tend to desire condos slightly more because they offer more freedom and less hassles from your neighbors (coop boards), etc., so condo prices might be SLIGHTLY higher than coop prices for an otherwise equivalent size and quality place.

Some coops might offer more built-in amenities in the deal (regarding maintenance and such), but they also have more restrictions and rules regarding whether or not you’re allowed to rent the place out if you decide to vacate it, who they would allow you to rent it to if anyone, etc., etc.

[quote]nephorm wrote:
MNguns wrote:
So is one better then the other when it comes down to ownership or selling it in the future?

All other things being equal, it is generally preferable to have a townhouse in terms of resale. Condos cover exterior maintenance and sometimes offer amenities like pools and gyms. Some cover utilities as well. For that you pay a monthly condo fee on top of your mortgage payment. Condos are generally lower maintenance. [/quote]

6

[quote]Damici wrote:
Um . . . you’re comparing apples and corn stalks here. A townhouse can be a condo. Or it can be a coop. Or it can be neither, i.e. its own individual piece of real estate, like any other freestanding house.[/quote]

I’m not a real estate agent, but all the agents I know and speak with use the term “townhouse” to mean individual real estate which is distinguished from a single family home only in that it is not freestanding. Perhaps that usage is local.

A condo is referred to as a condo.

Yes.

Homeowners associations can have the same sorts of rules, as bounded by state and local laws. I’m in the DC market while you are in New York… I have never heard anyone talk about coops in the DC area, although that could be my own ignorance.

Condos are also more likely to turn into Section 8 housing, here, which is another reason many people prefer non-condo townhouses and single-family homes.

7

And damici: I just noticed in your above description you only compared condos and coops, and omitted townhouses that are individually owned real-estate. Not trying to give you a hard time, just pointing out the options.

8

I should’ve been clearer then, if I wasn’t, in pointing out that owning a separate piece of real estate (entire townhouse, regular suburban house, etc.) is usually neither a condo nor a coop, but just its own house.

I think, as you suggested, we’re running into local differences in semantics. Here in NYC one would need to specify when talking about a townhouse, as one could buy the ENTIRE townhouse (its own individual piece of real estate) or one unit (which might be one or two floors) WITHIN the townhouse, which would often then be under either a coop or condo arrangement.

But yeah, real estate markets are vastly different around the country. I’m not familiar with DC, but in NYC, especially in Manhattan, coops are actually far, far more abundant than condos.

[quote]nephorm wrote:
And damici: I just noticed in your above description you only compared condos and coops, and omitted townhouses that are individually owned real-estate. Not trying to give you a hard time, just pointing out the options.[/quote]