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Ursula Page/Flashpics/Adobe Stock October 07, 2022 Jennifer Bradley Franklin is a multi-platform journalist and author, often covering finance, real estate and more. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Bankrate logo The Bankrate promise
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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. If you’re reading this, you’ve probably decided to purchase a home. Congratulations! It’s important to consider the available. And two of the biggest types are houses and condominiums, or condos for short. While both options allow you to become a homeowner and build equity in a property of your own, the similarities stop there. Specifically, many people weigh the choice to buy a house over a condo depending on their budget, space needs and lifestyle preferences. Read on to determine the outlines of the condo vs.house debate — to help conclude which option works better for you. What s the difference between a house and a condo
The biggest factor houses and have in common is that they are types of residential real estate owned by individuals. When you buy either, you’re owning real property (unlike, say, , in which you technically own shares in a cooperative entity), and you are liable to pay property taxes each year. However, nearly everything else about them is different. Houses (often called ) come in many shapes, styles and sizes, from modest to multi-story , from detailed to streamlined, one-level . In general, though, they’re usually detached, standalone structures, often with land surrounding them. In some cities, especially in historic neighborhoods, they can take the form of a , a narrow multi-floor home that shares one or two walls with adjacent properties but has its own entrance and patch of front or backyard. In contrast, are single units within a larger building, a multi-family dwelling. While condos can also take the form of row houses, the most common type of condo is that of an . So you can have neighbors above, below and next to you. Owners of single-family homes purchase the home structure and the land it sits on, while condo owners own just the unit they live in, not the larger building or the land on which it’s built. Generally, with a condo, the surrounding exterior space is shared among the condo owners. Condo vs house specific differences
Cost: The cost of owning a house vs. a condo can be dramatically different, depending on your neck of the woods (or city). For instance, a condo in New York City can cost substantially more than a single-family McMansion in Boise, Idaho. Generally, though, a condo is likely to be less expensive than a house in many markets across the country — but, you’ll need to account for monthly homeowners association dues, known as or carrying charges. Insurance: is typically less expensive for condo owners because they’re responsible only for the “walls in” aspect of their unit — the interior — while the HOA is responsible to secure insurance for exterior elements like siding and . Owners of single-family homes must insure their entire structure, from the foundation to the roof, as well as any detached buildings like a garage or shed. Maintenance: In a condo community, the HOA is responsible for , while condo owners must maintain areas inside their unit like the HVAC units, pest control and appliances. A house owner is responsible for all that and more, including yard care and exterior maintenance. (.) Amenities: In a condo community, the cost of amenities like a pool, gym or business center is shared among all the residents, making them more affordable for each individual. The owner of a house is solely responsible for the cost of installing similar perks on their property. Location: Condos tend to be located in densely populated city areas, so owners can be within walking distance to local restaurants, shops and cultural attractions. Houses, on the other hand, sit on their own pieces of land, so they can be in less dense areas. That said, many housing developments fit many homes together on small parcels of land, especially in urban environments. : Most condo communities have a governing board that can dictate a variety of things: what kinds of pets residents can have, where they can park and whether they can sublet their units, for example. So, when considering a condo vs a house, it’s important to decide whether you want to abide by HOA rules. While some single-family home neighborhoods have HOAs, they are typically less restrictive and allow for greater autonomy among homeowners. Selling: In general, it can be easier to sell a house than a condo. Before you , you’ll need to check with your HOA to make sure you comply with any rules, including being current on your dues. The HOA might also screen prospective buyers, which can limit your offers. Condo vs house Who should buy a condo
can be great for a looking to make the transition from renting to owning or for , since much of the maintenance is taken care of by the HOA. A condo can also be a smart buy for someone who travels frequently or who wants to be right in the middle of a coveted part of town where single-family homes would be out of their budget. Condos also are a good choice for owners who want amenities like an on-site pool or gym but can’t afford to install or maintain them. Condo pros
Affordability – Condos are typically less expensive than a house, so they can be ideal for first-time homebuyers with limited down payment savings or retirees wanting to scale back. Less maintenance – If you own a house, all of the upkeep of the property falls on you. If you don’t want to worry about maintenance as much, a condo might be a better fit. More perks – Unlike a house, many condo communities come with amenities like a pool or playground, and features like . If you want these for your house, you’ll have to install and pay for them yourself. Condo cons
Fees – Condo associations charge a monthly HOA fee to cover upkeep and other expenses, including insurance coverage for the property as a whole. They may also impose from time to time, to cover financial shortfalls or unexpected expenses. Individual condo owners have no say in the setting of these fees or choice of carriers, unless they join the condo board of directors. Less privacy – Since you’re sharing walls with neighbors, you won’t have as much privacy or quiet as you might be able to get with a house. And you’ll have to share amenities like the gym or pool. Rules – You might not have as much freedom to decorate or customize your condo, depending on your HOA’s rules. Condo vs house Who should buy a house
A single-family house typically comes with a lot more space, so it’s an ideal choice for growing families or those who want complete control over structural and aesthetic decisions about their home (assuming you don’t have an HOA in the ‘hood). If you value privacy and don’t want to share common spaces with other residents, a single-family house is the way to go. However, you must be prepared to handle — physically and financially — all of the interior and exterior maintenance and repairs. House pros
Customizability – If you own a house and it’s not in an association, you can do pretty much whatever you want to it, provided it adheres to your local jurisdiction’s ordinances. Privacy and space – With a house, you might be farther away from your neighbors, so you won’t have to worry about excess noise or privacy issues. Easier to sell – You won’t have to get the approval of an HOA to sell your house, so there’s one less barrier when it comes time to put your house on the market. Houses also offer a better return on investment. House cons
Can be pricey – Depending on its location, size and many other factors, a house can be much more expensive than a condo or other type of property. Maintenance is your responsibility – Unlike a condo, with a house, you’re tasked with maintaining the property, both indoors and out. This can add to your costs. Lack of built-in community – Compared to the shared spaces of a condo, it can feel a bit more isolating in a house. You might not run into neighbors as frequently, which can be a downside if you value social opportunities. FAQs
Should I buy a condo or a house
To a large extent, answering that question depends on your budget. Condos almost always cost less than homes, especially in desirable parts of town. If money’s not an issue, the question is: Do you value autonomy or do you value a maintenance-free lifestyle? You’ll have more of the former with a single-family home but more of the latter with a condo. Also bear in mind that houses tend to appreciate more in value than condos do.
Which is cheaper to buy a condo or a house
When comparing properties in similar parts of a city or town, a condo will almost always be more affordable than a single-family home, especially when you look at. If it’s a particularly well-appointed condo community, though, HOA fees might make the monthly out-of-pocket costs approach the monthly mortgage payment for a house.
What s easier to sell a condo or a house
That depends on the condo’s HOA. If they take an active role in the selling process — particularly if they have to approve buyers or dictate a minimum purchase price — selling that condo will be more challenging. In contrast, with a house, all the decisions are up to you. If the HOA board is accommodating, though, selling a condo and selling a house can be a fairly similar process. SHARE: Jennifer Bradley Franklin is a multi-platform journalist and author, often covering finance, real estate and more. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Related Articles