For years, the general path for homebuyers was to start with a small, single-family home, and gradually move up to bigger and better homes as they could afford more over time. However, rising home costs, inflation, and a low supply of single-family homes in the market have caused buyers to look for alternative options. For first-time buyers, it can be challenging to find single-family houses that are affordable. As a result, some buyers have opted for townhomes or condos instead.

Denis Smykalov, a Miami-based real estate agent with Wolsen Real Estate, sheds some light on the advantages and disadvantages of townhomes and condos as starter homes. He also explains how they differ from single-family homes, and questions buyers should ask when considering the alternatives.

Townhomes Vs. Condos

The main difference between townhomes and condos is the type of ownership. Townhomes are typically owned by the residents, while condos are owned by the building's tenant association. Condo owners only own the space within the walls of their unit, while townhome owners also own the land the unit is built on and can have a yard.

Advantages and Disadvantages of Townhomes and Condos

Townhomes and condos have their advantages and disadvantages compared to single-family homes. "Condos and townhomes are usually more affordable than single-family homes," says Smykalov. "They can be a good option for those who want to live in certain areas but cannot afford single-family homes in those areas."

Condos often come with additional services such as concierge, beach, and pool access, which makes them attractive to vacation home buyers. They can be rented out easily to provide an additional income stream. Smykalov also notes that condos are usually more secure and offer more amenities like movie theaters, yoga, tennis courts, and more entertainment options.

On the other hand, townhomes offer a greater degree of privacy and have neighbors who are easier to get to know. This is ideal for those who want to have pets and step outside, as condo dwellers have to use an elevator. Noise can also be a factor in choosing townhomes or single-family homes. "Some people prefer single-family homes where they have complete privacy, and they don't have to worry about their neighbors hearing music or kids playing," Smykalov said.

Questions for Buyers

When considering the purchase of a starter home, Smykalov suggests that buyers ask several questions, including:

What is the maintenance cost?
How long has a property been on the market?
What is the neighborhood and the schools like?
Is the property new or old, and is it in a good state?
Does the seller have a good reputation?
What is the management company?

Availability and What Agents Suggest

While condos and townhomes have advantages over single-family homes in certain situations, they may not be available in all markets. Smykalov notes that many people interested in Miami's ocean views have purchased condos in the city, and that townhomes are scarce.

If a buyer is having difficulty deciding between townhomes or condos, Smykalov suggests they find a real estate agent who can help them make an informed decision based on their preferences and lifestyle. "The agent will try to match the buyer's budget and requirements to the best availability," Smykalov said.

Conclusion

While single-family homes used to be the go-to starter home for many, rising costs have caused buyers to look at alternatives like townhomes and condos. While townhomes and condos have their advantages, buyers should ask the right questions when considering them as starter homes. Agents like Smykalov can provide valuable insights and help buyers make an informed decision.