Condo Vs. House: What Are The Differences?

Are you thinking about buying a home but are unsure about your options? There are many types of homes to choose from, but like any major purchase, it's important to know what you're getting into. If you’re reading this article, you’re probably uncertain about whether you should purchase a condo or a detached single-family house.

To help ease your uncertainty, we’ve created this guide to provide you with everything you need to know to make an informed decision.

The Difference Between Condos And Houses

Condominiums (condos) and detached single-family homes have a lot of similarities, but there are a few key differences. The main difference between the two is ownership. Condos, like apartments and townhouses, are part of a larger building or community and are typically governed by a homeowner’s association (HOA) or a condo association. Detached houses, on the other hand, are standalone properties in which the owner(s) has sole proprietorship. When you buy a house, you own the land, the plot of land and anything on it. When you buy a condo, you only own the unit itself, not the land or the building.

Unlike houses, condos typically have shared amenities, including a pool, gym or community room. The cost of these amenities is typically included in your monthly HOA or condo fees. While houses do not have shared amenities, you could purchase a property with these facilities, or pay to have them built – depending on your budget, of course.

Another key difference is the responsibility of upkeep and maintenance. If you own a detached home, you are solely responsible for all maintenance and repairs. This can be a lot of work, but it also gives you more control over the appearance and upkeep of your property. With a condo, on the other hand, the responsibility of maintaining the common area and shared spaces is typically the responsibility of the condo’s property management team and vendors. This can be a pro and con, which we’ll get into next.

Pros And Cons Of Buying A Condo

Still unsure about purchasing a condo? When deciding between a condo and a house, there are several factors to consider. Here are a few upsides and downsides to keep in mind:

Condo Pros

• Less maintenance: Since condos are units within a complex, the upkeep and maintenance of your building’s shared spaces and amenities is to be handled by property management. Property management is typically responsible for exterior maintenance, including landscaping and snow removal.  
• Availability: With high rises being a popular choice in developing cities, condos are generally more readily available in urban areas. If you are looking to move to a bustling location, you will likely have better luck finding a condo than a house.
• Shared amenities: Shared amenities generally include swimming pools, fitness centers and clubhouses.
• Purchase price: While factors including location, size and amenities will ultimately dictate this number, the average cost of a condo is much more affordable than a detached house.
• Security: Condos often have security features like a gated entrance or a security guard, which can make you feel safer.

Condo Cons

• Privacy: Like an apartment or townhome, condos are attached to other units by at least one wall.

• Condo fees: Shared amenities, security features and quality maintenance and repair service can come with a hefty price tag. On top of your monthly mortgage payments, you would also be responsible for condo fees or HOA fees, depending on your agreement. In some instances, you may be responsible for paying both. Fees and service costs vary by location and amenities, so it’s crucial that you understand your rights and responsibilities outlined in the governing documents before making a purchase.

• Condo covenants: Condo covenants are the rules that govern a condo community. Not only do covenants outline the rules for owners and occupants, they also outline the responsibilities of the condo board members and property management company.

Pros And Cons Of Buying A House

Maybe you’ve looked at the pros and cons of purchasing a condo, but you’re still unsure.  No worries, here’s a list of pros and cons associated with purchasing a house:

House Pros

• More privacy: Owning a detached single-family home might offer more privacy than a condo. Instead of sharing walls with your neighbors, this kind of home gives you space and distance.  
• Square footage: If you’re looking to expand your family, a detached house might be the best option in terms of square footage. Generally speaking, detached homes have more square footage, including large yards, more bedrooms, basements and attics.
• Freedom of design choice: You typically have more creative freedom when you purchase a detached single-family home.

House Cons

• More maintenance: Living in a detached single family home means that you are solely responsible for upkeep and maintenance. If anything breaks, you are expected to get it handled. From snow and leaf removal to major repairs, the responsibility is on your shoulders.
• Homeowners insurance: Due to size, location and build, homeowners insurance is generally more expensive for detached houses.
• Property taxes: A house’s extra square footage and number of bedrooms will typically result in higher property taxes.

Should You Buy A Condo Or A House?

So, which should you buy? Well, no two situations are the same, so the answer depends on your lifestyle, budget and preferences. If you're a busy professional who wants low maintenance and shared amenities, a condo may be the way to go. If you have a family and want more space and privacy, a house may be the better option. Whatever you choose, make sure to weigh the pros and cons carefully and choose a home that fits your needs and lifestyle.

Condo Vs. House: FAQs

Let’s look at a few commonly asked questions about houses and condos.

Are condos cheaper than houses? 

Generally, yes, condos sell for cheaper than detached houses in many cases. However, extra monthly costs, including HOA fees, will add to your monthly housing expenses. It’s important to sit down and crunch the numbers to see which is the most affordable option for your circumstance.

What do HOA fees cover? 

Condo fees and HOA fees are different. HOA fees typically cover the upkeep of amenities and commonly shared areas in a neighborhood that are strictly communal. This means that this fee will cover the cost of lawn maintenance and pool upkeep, but not your leaky faucets.

What do condo fees cover? 

Condo fees are fees that the condo property management organization determines will cover the upkeep for the entire building. This means that this charge will cover most repairs and maintenance of amenities.

Are condos hard to sell?

It depends on the condo location’s housing market. It’s best to take a look at your city’s housing market trends to determine if an area is populated with high-rises or single-family suburban homes.  

The Bottom Line: Deciding Between A Condo Vs. A House

Deciding whether to buy a condo or detached single family home is a big choice. If you are a busy single person, or a couple of first-time home buyers, you may want to consider purchasing a condo. The low maintenance, shared amenities and location of these homes may best suit your situation. If you’re a bit more established and ready to settle down, you could consider purchasing a detached house for your family, as the extra square footage and privacy might be of more comfort to you and your loved ones.

Of course, only you know what would work best for your situation. While we can’t answer the question of which one you should buy, we can suggest you take some time to match with a local expert to get a better understanding of your purchase options. There is no rush. Take your time, weigh the pros and cons and crunch some numbers. Best of luck on your home buying journey, we know you’ll smash it.