✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.
Are Townhomes Hard To Sell? Well, the sale of townhouses is booming. Even though the consensus is townhouses are difficult to sell, times are changing. The market share of newly built townhouses has increased by 14%.
Selling a townhouse has some challenges. However, knowing those challenges will prepare you to sell it at a competitive price. People build townhouses due to their easy saleability, value appreciation, and positive cash flow.
In this blog we will find out, why are townhomes hard to sell and the best ways you can sell them.
📌Read this before you sell a townhouse
- Millennials are more interested in buying a townhouse.
- Townhouses offer a lower cost-alternative for buyers in the current market.
- Planned communities for townhouses tend to attract more buyers because of the amenities offered in such places.
What is a Townhouse?
A townhouse is also called an attached house, which comes in a group of 3 or more homes that share a common wall. What makes a townhouse different is stacked living and shared responsibility.
Each townhouse contributes to a shared maintenance organization like HOA. The monthly HOA fees handle most maintenance and repairs of the townhouse. The value of the townhouse depends on the structure, design, and type of townhouse ownership.
Types of Townhouse Ownership
It is very important to know the type of townhouse ownership you have to improve its saleability.
Fee Simple Townhouses
Owning a fee-simple townhome is similar to owning a single-family home. When you sell a fee simple townhome, its most saleable features are complete ownership, lower HOA fees, and freedom to modify the townhouse.
Condo Townhouses
In condo townhouses, you own everything inside the wall, but not the exterior. Modifications are limited within the townhouse. A selling point that you can highlight to the buyer is that they need not worry about modifications.
Why Are Townhomes Hard To Sell?
Townhouses are hard to sell due to the following factors.
Not Selling at the Right Price
Most townhouses in a neighborhood have similar FMV. It’s harder to price your home appropriately. So, highlight the townhouse’s unique features, and position your townhouse competitively in the market.
Limited Pool of Buyers
Most families look for a single-family home that has a yard. In contrast, young professionals look for condos near their employment. Use targeted strategies to reach young professionals or families who want affordable housing options.
FHA Loan Availability
Some townhouses might not qualify for FHA loans, which makes people avoid them. It’s easier to sanction a loan on community-approved townhouses. You should find out if your townhouse is community-approved when you want to sell it.
5 Ways You Can Sell Your Townhouse Fast
Townhomes are hard to sell, but not impossible. These steps will ensure you get top dollar for your townhouse fast.
1. Mention the HOA Fees
The average monthly HOA fee is $170. Buyers want to know the HOA fees to check if they are worth the rate or not. Mention the HOA fees and list out all the things your HOA covers like roofs, walls, and lawns.
2. Set the Right Price
Most neighborhoods have the same prices, so it can get competitive. Therefore setting a competitive price makes you stand out among buyers and ensures you sell your townhouse faster.
👉 Home worth calculator: You can also use this home worth calculator to find out the fair market value of your property.
3. Stage Your Home
How you stage your townhouse can increase its sale price by 5% on average and it can sell 6% to 10% faster than unstaged homes. Stage your house to maximize its space, and emphasize its best features.
4. Market Your Property
Homes photographed professionally sell 32% faster. If your townhouse has a pretty view, a yard space, or a patio, make it stand out by clicking attractive pictures. Put these pictures in your listing photographs.
Write influential descriptions to showcase its unique features. Don’t forget to get a yard sign. A yard sign grabs the attention of local buyers nearby.
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5. Showcase Amenities
Highlight basic amenities like schools, hospitals, area crime rates, and climate. You can also highlight nearby attractions like shopping malls, and trendy restaurants to attract buyers to your townhouse.
Best Strategy For Townhomes
Since townhouses come in units, you can live in one and rent out the rest of it to gain a passive income. You will still have to pay the HOA fees for the maintenance of your townhouse.
However, your tenants will be responsible for the fees for water, sewer, garbage, and trash removal. Instead of selling a townhouse, renting could be one of the best strategies.
Ready To Sell Your Townhouse?
Are townhouses hard to sell? No, townhouses are gaining popularity, therefore, if you follow the aforementioned methods, you can sell your house faster.
Another quick way to sell your home could be through listing it on a Flat Fee MLS website like Houzeo. It is America’s #1 ranked flat fee MLS company. On this, you can get your townhouse listed in the MLS and attract buyers from all around the country.
Houzeo’s empowers you to:
- Save 3% on commissions.
- Manage showings and offers with our online platform.
- Reach millions of buyers through MLS.
- Get expert guidance from our 5-star rated customer support team.
Don’t overpay, list your townhouse on Houzeo today for maximum savings.
Frequently Asked Questions
Why are townhomes hard to sell?
Selling a townhouse is hard due to the limited pool of buyers, higher competition, and high HOA fees. But listing your townhouse on MLS, staging your home and marketing your townhouse can increase your chances of selling it.
What makes a townhouse?
A townhouse comes in a group of 3 or 4 houses that share a common wall. What makes a townhouse is attached living, similar layouts, and shared maintenance HOA fees.
Are townhomes hard to resell?
Various factors like market condition, condition of the townhouse, type of townhouse ownership, and location are the factors that determine whether townhomes are hard to resell or not. But the best strategy to make the most of your townhouse is by renting it.
