You may have a different idea of a “dream home” than most people do. While many have their sights set on detached, single-family houses with private front and back yards, you personally may be more interested in a town house.

According to the National Association of REALTORS®, town houses are the second most common type of home purchased in the US—right behind single-family homes. Affordable, cozy, and still spacious, town houses are a low-maintenance alternative to other homes. But is shopping for a town house different than shopping for other types of properties? Here’s what you need to know before you start looking up listings. 

What is a town house?

First, it’s important to recognize what exactly a townhouse is and isn’t. A town house is a single dwelling that is directly connected to other homes. Depending on the design, a row of town homes may even resemble a single large building with multiple distinct entrances.  

Typically smaller than single-family houses, town houses often feature multiple stories—building vertically to maximize square footage without occupying a large plot of land. A town house may have a private front patio and/or a fenced backyard, but the front of the property is usually shared between residents in the entire row of dwellings.

What exactly makes town houses such a popular option, especially among buyers under 30? The primary reason is they’re affordable. Because they offer less privacy and square footage, they’re often priced better than single-family homes in the same area of town.

Town houses are also ideal for those who don’t feel the need to own a large yard and would rather save on upkeep costs. As Bankrate suggests, “Overall, if you don’t want the exterior maintenance that comes with homeownership, but you would still like the equity and wealth building aspects of owning a home, buying a town house is certainly worth consideration.”

How to buy a town house

The first step when shopping for a home—any type of home—is to find a real estate agent. An agent has the expertise and local market knowledge to find properties that meet your wishes and needs.

Next, it’s time to find town house properties to visit. You can explore your own listings on popular real estate apps or even let your agent do the house hunting for you based on your unique shopping requirements (e.g., budget, location, size of town house, etc.) Town houses are sometimes only available for rent, not purchase, so an agent can create a list of properties that meet your ownership goals. Because you shouldn’t purchase property sight-unseen, you’ll need to visit each town house—either via an open house, a scheduled tour, or a virtual tour with the current owner.

Consider which town houses feel right for you. Do you like the appearance of the property from the curb? How appealing is the community or neighborhood? Town houses are generally less spacious than single-family homes, but you should consider if a town house on your list offers sufficient space for you and your family. Because you’ll likely be sharing at least one wall with a neighbor, you should also pay special attention to how noise carries. You may also hear more traffic noise because town houses are usually built closer to the street to save space.

Next, be aware of any Homeowners Association fees. HOAs are very common for town houses and offer many services, including landscaping for common areas, amenities like access to a pool and mail center, and more.

Then, consider hiring an inspector to visit the property and assess its overall condition. Home inspectors are trained to inspect homes closely to determine which areas are like-new, which may need attention soon, and which need immediate attention, such as an attic with mold. Based on the inspector’s findings, you should ask your agent to discuss the home’s condition with the seller. If serious work is needed, you may end up shopping for a different town house altogether.

Once you find the town house that best suits your needs, you can place an offer. Your agent may recommend that you offer a certain figure. Based on how competitive the market is, any current offers, and the condition of the home, you may end up placing an offer slightly higher or lower than the town house seller’s asking price.

The following steps of the process are similar for all types of properties: applying for financing, getting approved for a loan, and signing paperwork with the seller. Your agent will guide you through the process as your advocate, working to ensure you successfully purchase a town house you love.

So, how does the homebuying process differ?

Overall, shopping for a town house isn’t too different from shopping for a detached, single-family home. The major difference will be the price. Thankfully, because town houses are more affordable on average, qualifying for a mortgage may be more forgiving. After all, a lending institution will be investing less money in you when you purchase a town house.

However, town houses are less common than single-family homes, so your pool of available properties may be somewhat limited. This is especially true if you don’t live in a large city with a dense population. For these reasons, it’s essential to pursue the assistance of a real estate agent in your area to find the town house of your dreams.