The housing market in California has been increasingly competitive. In 2017, 60.4% of all homes listed for sale received multiple offers and 32.9% of all sales sold above the asking price. Astonishingly enough, homes were listed on the market for an average of merely 13 days. With Southern California apartment rents expected to rise over the next two years, many prospective homebuyers are weighing their real estate options. Here are a few things to consider before purchasing a condo, townhome, or single-family home.
Purchasing a condo is the best option for homebuyers who are seeking the most hands-off approach to homeownership. A condominium, or condo, is a building or group of buildings in which the units are individually owned. The structure of condos is very similar to that of rental apartments and townhouses. However, condos are often cheaper because they come with no additional exterior space or land. The exterior areas are collectively owned by all of the condo owners in the community. Consequently, condo owners pay monthly HOA fees that cover the cost of maintenance throughout the community. A condo is a good option for prospective homebuyers who are looking for something that is reasonably priced and want to avoid the hassle of constant home maintenance and upkeep.
Like condos, townhomes are communities of conjoined units that are owned by individual tenants. In most townhome communities, the owners own the interior and exterior areas of the unit. Townhomes are architecturally similar to row houses, in which tenants share at least one wall. Most townhomes have two or more stories and are actually very spacious. They are generally less expensive than detached homes, however, townhouse owners pay monthly HOA fees to cover general maintenance and upkeep of communal amenities. A townhome is a good option for homeowners with little homeownership experience and a willingness to abide by HOA restrictions.
Lastly, prospective homeowners should consider their preferences for space, privacy, and community before deciding to purchase a single-family home. Single-family homes are unattached houses that are usually located in suburban areas. They often include larger yards and plenty of storage/garage space. A single-family home also offers more privacy than condos or townhomes, since no walls or floors are shared with neighbors. However, in a single-family detached home, all maintenance and upkeep responsibilities fall on the homeowner and must be paid out of pocket. Nevertheless, a single-family detached home offers numerous freedoms and benefits that condos and townhomes do not provide.
Contact us if you would like additional information on the pros and cons of purchasing a condo, townhome, or detached home. We are more than willing to connect you with an experienced agent to assist you in making the best real estate move!