Ten Tips to Consider While Shopping for a Townhouse

Shopping for a townhouse is often the best way to find your first home. You are likely to get more house and more amenities for your money, and upkeep is minimal. There can be pitfalls, though. Here are 10 tips to consider when shopping for a townhouse.

1. Neighbors

You own the land beneath your townhouse, but you share common walls with neighbors. Therefore, if possible, spend time in a townhouse you are considering when the neighbors are home. If you decide noise will be a problem, look elsewhere.

2. Neighborhood

Certain problems are incurable. A neighborhood near a freeway, an airport or a facility like a municipal transfer station is at a disadvantage. Similarly, a high-crime neighborhood is likely to take years to change. Drive around the neighborhood at different times of day and on different days of the week. Make sure you feel comfortable.

3. Commute

Check the commute. Find out the travel time as well as the mileage. Saving 15 minutes of commuting will add up if you stay in your home for five years. On the other hand, if you plan to retire soon, you might not care.

4. Rentals

Examine the association's rules for renting. Ideally, you want to be able to rent out your home but don't want to live in a complex that is full of renters. So you are looking for a balance, perhaps a complex where it is possible to rent out a home but with some restrictions, such as not being able to rent in your first year of ownership. In a vacation or resort area, your goals could be different. Make sure your plans are in accord with the association's rules.

5. Amenities

You might or might not want to pay for tennis courts or a pool. Amenities like these could be valuable to you or to a potential purchaser, however. Consider whether you want to pay an increased association fee to pay for upkeep. On the other hand, Internet, cable TV and snow removal are amenities homeowners get at a discount. Your patio or yard is an amenity, too. Make sure you have a feeling of privacy there.

6. Price

If the townhouse you are looking at seems to be priced substantially above the market average or way below it, you should ask why. In general, shoppers, even careful shoppers, get what they pay for.

7. Rules

Do you want to have pets? Do you want your neighbors to have pets? The rules about pets should seem fair and evenhanded to you. Also make sure that you understand the rules about landscaping. In some complexes, it takes many months to get permission to plant a shade tree. Restrictions are meant to maintain an orderly complex, but make sure these are regulations you can consistently obey.

8. Community size

Large complexes can feel impersonal. On the other hand, your homeowner's fee will probably go farther in a big complex. You might feel more at home is a small complex or that you have more privacy in a larger community. Know what you want.

9. Association minutes

Read the association minutes to see if board members get along. You should also find out how they manage homeowner funds. If a large assessment is coming, you need to know. It is also important that the monthly fee be high enough to maintain a reserve. Make sure people are paying their dues on time, and find out what would happen to someone who does not.

10. Inspection

Look around the parking areas, the dumpsters and the utility areas. Inspect the pool and tennis courts. Upkeep is critical, and these are places where you can get a sense of how well the complex is being maintained. Make sure that if you move there, you will like the neighborhood.

A townhouse is a substantial investment. Though your real estate agent will guide you, you must also use your own good sense. Follow these 10 tips when shopping for a townhouse, and you're likely to find the right home.