What to Know & Do When Shopping for a New Townhome

Townhome vs. Condo: What’s right for you?

Short answer: Townhomes offer the sweet spot between condos and single-family homes and might be exactly what you're looking for.

What is a townhome?

• Style and ownership: A townhome (aka townhouse or rowhouse) shares walls but not ceilings/floors and typically includes front/back yard space.

• You own the land: Unlike a condo, you own the ground it’s built on.

• More responsibility: That also means you're on the hook for lawn care, exterior upkeep, and more.

The upside: Enjoy lower cost than single-family homes and lower HOA fees than condos.

HOA: Know the rules before you buy

Townhomes = fewer services from the HOA.

• Fees are typically lower.

• Handle your own lawn, exterior, and possibly roof.

Read the fine print: Dive into the HOA’s Covenants, Conditions & Restrictions (CC&Rs). What do they cover? What’s off-limits?

“I’ve seen HOAs that don’t allow storage sheds in the backyard, solar panels, or private fences,” says Craig Reger, a real estate broker in Portland.

Know before you sign.

Know your builder

New townhome? You can’t check its track record, but you can check the builder’s.

• Are they financially solid?

• Do their past homes stand the test of time?

Do your homework

• Check with the Better Business Bureau.

• Visit previous developments.

• Talk to homeowners and subcontractors.

• Search the TrustBuilder, a rating and review database, on NewHomeSource.com.

Red flag: Builders with liens filed against them. (Yes, you can check at the courthouse.)

Must-have features for new builds

Control the look of your townhome, but be in-the-know.

• Determine what comes standard? What is a standard feature and what is an upgrade?

• What does it cost? Model homes show everything. Avoid additional costs as it's not all included.

• Ask for a feature sheet: Question anything that seems unclear to ensure you don’t go over budget.

Pro tip: Builder-installed upgrades go into your mortgage which might be cheaper than DIYing them later. Always compare.

Financing and incentives

Most builders won’t haggle on price, but they will offer perks:

• Help on closing costs

• Free upgrades

• Better warranty coverage (increases with use of their lender)

Be prepared for additional expenses beyond the mortgage:

• HOA fees

• Utilities

• Insurance (HOA covers some items)

• Landscaping

• Furnishings and window treatments

Check the fine print on what’s covered by the builder vs. the HOA.

Warranties matter

Most new homes come with warranties:

• 1-year workmanship warranty

• 10-year structural warranty

• Appliance/roof manufacturer warranties

Make sure everything’s in writing especially coverage limits and how to file a claim.

Design and layout tips

Who and what is on the other side of those shared walls? Ask about:

• Soundproofing: Insulation + wall thickness equates to peace and quiet.

• Natural light: Townhomes have windows front and back. Consider skylights (if allowed).

• Views matter: Ask what’s planned for the land behind/next to your unit.

Your future view might be a lake… or another building. Know the zoning and builder’s plans.

Ready to find your new townhome?

Start here: NewHomeSource.com lets you filter for townhomes only in your desired area. Find your perfect option from the many locations and homebuilders.

Townhomes offer a smart, flexible path to homeownership. Just go in with clear eyes and the right questions.