Hidden Costs of Buying a Townhouse: What Every Buyer Should Know

Drew Trombley -

The True Cost of Owning a Townhouse

Many homebuyers are drawn to townhouses because they offer affordability and low-maintenance living. However, hidden costs can catch buyers off guard and add up quickly. If you’re considering purchasing a townhouse, it’s essential to understand all potential expenses beyond the listing price.

In this guide, we’ll uncover the hidden costs of buying a townhouse so you can budget accordingly and avoid unexpected surprises.

1. Homeowners Association (HOA) Fees

What Are HOA Fees?

Most townhouses are part of a homeowners association (HOA) that charges monthly or annual fees to maintain the community and common areas.

What’s Included in HOA Fees?

  • Lawn care and landscaping
  • Snow removal
  • Exterior maintenance
  • Common area amenities (pools, gyms, clubhouses)
  • Security services

How Much Can HOA Fees Cost?

HOA fees can range from $100 to $500+ per month, depending on the amenities and maintenance costs in your community.

2. Special Assessments

HOA fees don’t always cover major repairs or unexpected costs. When a large expense arises, such as a roof replacement for the entire community, the HOA may charge special assessments to homeowners. These one-time fees can range from a few hundred to several thousand dollars.

How to Avoid Surprise Special Assessments

  • Review the HOA’s financial reserves before buying.
  • Ask about past and upcoming major repairs.
  • Speak with current residents about their experiences with HOA assessments.

3. Property Taxes and Insurance

Property Taxes

Townhouse property taxes vary by location, but they are often based on:

  • Home value
  • Local tax rates
  • Community assessments

Taxes can increase over time, especially in rapidly developing neighborhoods.

Homeowners Insurance

While townhouse owners may not need full structural insurance (covered by the HOA in some cases), you still need homeowners insurance for:

  • Interior damage
  • Liability coverage
  • Personal belongings

4. Utility and Maintenance Costs

Even with an HOA covering some expenses, you’ll still be responsible for:

  • Water, electricity, and gas bills
  • HVAC maintenance and repairs
  • Pest control services
  • Interior upkeep such as plumbing and appliances

Older townhouses may have higher maintenance costs due to aging systems and structural repairs.

5. Closing Costs and Moving Expenses

Closing Costs

Beyond the down payment, expect to pay 2-5% of the purchase price in closing costs, which include:

  • Title insurance
  • Loan origination fees
  • Home inspections
  • Attorney fees

Moving Costs

Factor in costs for hiring movers, storage fees, and utility deposits when budgeting for your townhouse purchase.

Final Thoughts: Budgeting Wisely for Your Townhouse

Townhouses offer a great balance between affordability and convenience, but it’s important to factor in hidden costs before making a purchase. By understanding HOA fees, special assessments, property taxes, and maintenance costs, you can make an informed decision and avoid financial surprises.

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