February 8th, 2021

Which is better – a condo or townhouse? What’ s the difference?

A townhouse or condo is a popular option for a first time home buyer, a second home crash pad or for someone who is ready to downsize and give up the responsibility that comes with owning a single family home. Condos and townhomes are similar in that they are usually attached to multiple units but there are some differences. The main difference between and condo and a townhome is the portion that you own. In a condo, you own “from the studs in”. Simply put, you own the interior of your unit and a homeowner’s association owns the outside of the building and any shared spaces/buildings. A townhouse refers to a type of architecture – multi level with shared walls on one or both sides. With a townhome, you own the interior, exterior and land that your townhome sits on.

Home Owner’s Insurance for Condos and Townhomes

The homeowner’s insurance for your condo only covers the interior of your unit, so it’s much cheaper compared to insurance for a detached single-family home. Aside from your personal homeowner’s insurance for your unit, you’ll also contribute to the building’s insurance in your HOA fee. That covers the shared spaces outside your unit. For instance, if the roof needs repair after a bad hail storm (hello Montana!) the HOA insurances covers that. If you have a fire inside your unit, that would be covered under your individual policy.

Homeowner’s insurance for a townhouse is essentially the same but may also include the exterior of your home and the land it’s own. Because the coverage is for more, the insurance amount may be more than a condo.

What Are the HOA Fees Like for Condos vs. Townhomes?

The Homeowner’s Association is typically made up of residents that live in your building or neighborhood. They hold meetings and vote to make decisions on how to maintain the building and community grounds. Who’s going to pay for new siding or paint in a condo or pay for lawn care/snow removal? Your HOA fee! Your HOA fee can cover exterior upkeep, landscaping, park space, gym space and sometimes water and garbage. HOA fees can vary so before you purchase a townhome or condo, ask for the HOA contact to verify what the fee is and what it covers. Generally speaking, the HOA fee for condos can cost more than townhomes, mainly because it’s covering the upkeep of the exterior of the building and grounds.

When you purchase a condo or townhouse, you’ll want to take a look at the HOA’s finances, history and covenants/bylaws. It’s important that the HOA is healthy with money in reserves.

Financing a condo vs. townhome

Another difference to note in buying a condo vs. townhome is financing.  Put simply, financing a condo looks like qualifying you as an individual as well as the condo association. One of the factors that may affect lending on condos is owner occupancy ratios. Talk to a lender to get prequalified and to talk through the differences in lending on condos and townhomes to decide what options are best for you. Contact us for a list of local lenders that we work with often.

Below are the townhomes on the market in Bozeman between $200,000 and $600,000. If you’re looking for a condo, townhouse or house, give us a call!

$599,900 // Pending Sale 2418 Renee Way, Bozeman 2418 Renee Way
Bozeman, Montana
3 Beds | 3 Baths | 0.0679 Acres
$589,000 // Pending Sale 2358 Renee Way, Bozeman 2358 Renee Way
Bozeman, Montana
3 Beds | 3 Baths | 0.0678 Acres
$579,000 // Pending Sale 448 Meriwether Avenue, Bozeman 448 Meriwether Avenue
Bozeman, Montana
2 Beds | 3 Baths | 0.07 Acres
$579,000 454 Meriwether Avenue, Bozeman 454 Meriwether Avenue
Bozeman, Montana
2 Beds | 3 Baths | 0.07 Acres
$575,000 // Pending Sale 824 Matheson Way, Bozeman 824 Matheson Way
Bozeman, Montana
3 Beds | 3 Baths | 0.081 Acres
$550,000 116 Michael Grove Avenue, Bozeman 116 Michael Grove Avenue
Bozeman, Montana
3 Beds | 2 Baths | 0.1023 Acres
$549,500 // Pending Sale 1079 N Cottonwood Road, Bozeman 1079 N Cottonwood Road
Bozeman, Montana
3 Beds | 2 Baths | 0.095 Acres
$545,000 3650 Potosi Street, Bozeman 3650 Potosi Street
Bozeman, Montana
3 Beds | 3 Baths | 0.0717 Acres
$545,000 4394 Brookside Lane, Bozeman 4394 Brookside Lane
Bozeman, Montana
3 Beds | 3 Baths | 0.069 Acres
$532,000 5610 Sandpiper, Bozeman 5610 Sandpiper
Bozeman, Montana
3 Beds | 3 Baths | 0.0689 Acres
$532,000 5560 Sandpiper, Bozeman 5560 Sandpiper
Bozeman, Montana
3 Beds | 3 Baths | 0.071 Acres
$532,000 5570 Sandpiper, Bozeman 5570 Sandpiper
Bozeman, Montana
3 Beds | 3 Baths | 0.0815 Acres
$532,000 5600 Sandpiper, Bozeman 5600 Sandpiper
Bozeman, Montana
3 Beds | 3 Baths | 0.0797 Acres
$526,000 5561 Sandpiper, Bozeman 5561 Sandpiper
Bozeman, Montana
3 Beds | 3 Baths | 0.0791 Acres
$526,000 // Pending Sale 5601 Sandpiper, Bozeman 5601 Sandpiper
Bozeman, Montana
3 Beds | 3 Baths | 0.0829 Acres
$526,000 // Pending Sale 5611 Sandpiper, Bozeman 5611 Sandpiper
Bozeman, Montana
3 Beds | 3 Baths | 0.0758 Acres
$526,000 5565 Sandpiper, Bozeman 5565 Sandpiper
Bozeman, Montana
3 Beds | 3 Baths | 0.0838 Acres
$520,000 4364 Brookside Lane, Bozeman 4364 Brookside Lane
Bozeman, Montana
3 Beds | 2 Baths | 0.069 Acres
$515,000 // Pending Sale 917 N 15th Avenue, Bozeman 917 N 15th Avenue
Bozeman, Montana
3 Beds | 3 Baths | 0.054 Acres
$500,000 5519 Arnhem Way, Bozeman 5519 Arnhem Way
Bozeman, Montana
2 Beds | 2 Baths | 0.0851 Acres
$500,000 // Pending Sale 55 Michael Grove Ave, Bozeman 55 Michael Grove Ave
Bozeman, Montana
3 Beds | 2 Baths | 0.156 Acres
$479,000 // Pending Sale 4368 Brookside Lane, Bozeman 4368 Brookside Lane
Bozeman, Montana
3 Beds | 2 Baths | 0.0895 Acres
$475,000 // Pending Sale 3610 W Broadwater Street 106, Bozeman 3610 W Broadwater Street 106
Bozeman, Montana
2 Beds | 2 Baths | 0.0449 Acres
$468,000 // Pending Sale 411 Prairie Avenue, Bozeman 411 Prairie Avenue
Bozeman, Montana
3 Beds | 2 Baths | 0.076 Acres
$439,900 // Pending Sale 5575 Arnhem Way, Bozeman 5575 Arnhem Way
Bozeman, Montana
3 Beds | 2 Baths | 0.0551 Acres
$309,900 1120 W Babcock Street 4, Bozeman 1120 W Babcock Street 4
Bozeman, Montana
2 Beds | 1 Bath | 0.055 Acres
$309,500 1120 W Babcock Street 13, Bozeman 1120 W Babcock Street 13
Bozeman, Montana
2 Beds | 1 Bath | 0.051 Acres

 

What our clients are saying:

Jody is FANTASTIC!! We were first time home buyers and she was with us ever step of the way! She never made us feel silly for being new to the process. She definitely knows the area, always kept us up to date on new listings and was just a delight to work with. I would have absolutely zero hesitation recommending her to anyone. Thanks for all the hard-work Jody! We love our house!

K.G.

My wife and I used Jody Savage for the sale of our home in Gallatin Gateway, MT. Jody was exceptional in all phases of our sale. We had multiple offers over asking price and sold our home in two days! Jody uses up to date modern marketing, was extremely professional and knowledgeable regarding our market and addressing our needs. She was great to work with and very responsive to any questions we had. Jody is the best in the business and we highly recommend her services!

G.B.

Jody Savage is knowledgeable, trustworthy and tireless. I purchased a property this spring (2017) near Bozeman; Jody represented me as well as the seller in the transaction. Jody led me through the entire process because this was the first property I had ever purchased. HOA complications and other details made the purchase more difficult. Jody undertook a boat-load of legwork to make the transaction go smoothly. I hope to work with Jody again.

J.D.

Jody is amazing. She knows the market and was able to advise us on all our many concerns. We so appreciated how responsive she was; within minutes of submitting an online request for realtor contact on a house, she had called us. All our communications with her were like that; we never had to wait long to hear back from her. She was patient and always willing to sit down and meet with us. When we found the house we wanted, she worked tirelessly to secure it for us, and she was extremely patient with us. She was easy to communicate with, understand, and a pleasure to work with – I highly recommend Jody!

J.T.

Jody was awesome to work with. We were new to the area and she was helpful and knowledgeable about not only the housing market, but schools, and lenders. She worked with my work schedule for showings. Jody also stayed late to write an offer to meet our schedule. I would recommend Jody to anyone needing a realtor.

M.L.