Townhouse versus Condominium Comparables

[Ariba]

Yes, I know there is a legal difference in ownership. A townhome is usually owned in fee simple. The owner of a townhome has property rights that extend to the yard around the townhome and the air above it. By contrast, a condominium owner's property rights only extend to the walls of the structure.

However, is there an appropriate time and place when you could use and mix them in an appraisal report?

I have an 2,000/SF condominium in a 12 unit 3 story age restricted building. No sale in the past 3 years. No age restricted communities or anything approaching 2,000/SF within a reasonable distance. However, there are some age restricted townhouse communities within 2 miles of the subject that have similar SF. They both have Homeowner Associations, the amenities are similar tennis court, swimming pool, common area maintenance, etc. Would you use them and explain, explain!

Also, exactly what is the impact to the average homeowner in condominium versus townhouse ownership?

 

[Tim The Enchanter]

Yes, I know there is a legal difference in ownership.

Not in CA. Townhouse is just a style. Same as Penthouse. Condo is the legal use whether it's 2-3 story units attached or detached, private yard or no, or stacked units with 1 level, or more. Short story long, I can't help in CO. :new_llying:

 

[jakeboeger]

Would a buyer of condominium A also consider townhouse B?

 

[hastalavista]

However, is there an appropriate time and place when you could use and mix them in an appraisal report?

Sure there is.
As Jake's comment implies, when the typical buyer considers one as a substitute for the other, they might qualify as comparables.
That's not uncommon in many markets; survey some real estate agents and ask them if their condo-purchaser also looked at non-condo/townhouse-designed homes.

 

[Ricardo]

Usually the management fees for condos are higher as it consists of outside maintenance - but not always. I live in a nice townhome that costs a bundle every month - over $200 and they do the lawn work, shoveling and plowing, and we have a nice pool. In our case, this would compare very favorably with an upper end condo, with the same neighborhood amenities.

Don't make things more complicated than they need to be. I use them interchangably all the time - if they have similar market appeal, similar HOA fees, and similar amenities. No big deal.

 

[OminousRun]

I've done it before in certain specific situations, using townhomes as comps for condos - but they were similar in design and monthly fees, and there were no other condos that sold within the past year in the subject's market.

I've also used condos as comps for townhomes under the same type of situation. New townhome development with no other attached housing within 10 miles. In my situation condos were acceptable as comps because there were considered alternative purchases prospective buyers would consider in the subject's immediate market.

 

[jay trotta]

Ron, r e a l l y

not in my area; Condo or PUD.......no idea of what language you speak...."Townhome" and it's Legal difference.

ahhh, Colorado, isn't that "thin air" country......lol


cheers

 

[Lee Lansford]

...

Would you use them and explain, explain!

Also, exactly what is the impact to the average homeowner in condominium versus townhouse ownership?

If both projects have a long sales history, you have the answer to your question right in front of you.

 

[Ariba]

.......no idea of what language you speak...."Townhome" and it's Legal difference.

ahhh, Colorado, isn't that "thin air" country......lol

That is the question! Do you have an answer or is the air is to cold in Connecticut to think clearly......... .lol By the way, what language do they speak in Connecticut?

 

[Dan/Fla]

Here there is many differences in a TH when the exterior needs repair, and or painting; or the roof needs replacing the home owner picks up the bill, However in a condo the condo association picks up the bill. In a town home there is usally Land involved in condos true there is land involved it just does not belong the the condo owner.