Knowing how to sell a townhouse quickly will help owners when the time comes to move on to whatever is next. A niche buyer market and possible community competition present difficulties that might naturally increase a townhome’s time on the market.
But that doesn’t have to be the case. Justin Willard, a top-selling agent in Pembroke Pines, Florida, says that the general turnaround time on townhouses is somewhere between 3 and 30 days in his area.
So what’s the secret to selling a townhome fast? We’ll examine some of the particular challenges that townhome sellers may face, then offer expert insights on how to overcome each hurdle for a fast sale.
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Focus on the selling points of each type of townhome
While individual townhouse developments will vary in layout and features, the general characteristics of a townhouse include at least one shared wall, relative uniformity across units, and shared maintenance costs, paid for through HOA fees.
While those basic elements are fairly standard for townhomes, there are two different types of townhouse ownership, each with its own benefits. As a seller, you’ll need to know which type of ownership you’re offering to buyers so that you can highlight the advantages.
Fee simple townhouses
Fee simple townhouse ownership is very similar to that of a single-family home, where the ownership contract extends to everything from the roof down to the land that your home sits on.
Challenge: Selling to a limited buyer pool
Families typically look for a single-family home with a yard for pets and kids. Young professionals tend to look for condos near their place of employment. But who’s the ideal buyer for a townhouse?
Tip: Highlight the price, location, and maintenance benefits
Willard says that many different types of buyers can envision living in a townhouse—if they fully understand the benefits. Townhouses are ideal for buyers who are looking to downsize, get a bargain in a hot market, or lower their home maintenance burden. They may also be a great choice as a “stepping stone” property for younger families working their way toward a single-family home.
Lower price for a great area
In certain markets, especially those on the more expensive side, many potential buyers who initially considered a single-family home will realize they can afford a nicer, larger townhouse that is closer to their ideal location.
The price per square foot for new developments in Manhattan, New York, is around $2,267, while it is around $1,971 for condos and $1,218 for co-ops. The average price for a townhouse on the East Side is around $1,758 per square foot.
Less work for the owner
Similarly, young professionals who are looking for a maintenance-free condo lifestyle in the city may be more apt to look at townhouses in the surrounding metro area if the price of downtown condos is out of reach.
Reduced energy bills
In addition, townhouses tend to keep energy costs lower, a savings that could appeal to buyers on tighter budgets, such as seniors or young families. One study indicates that on average, dwellings with shared walls enjoy around 7% to 21% lower energy consumption than single-family homes.
Work with your agent to develop a listing narrative that paints a picture of the benefits that your townhouse brings to the table. Is it larger than most condos? Does it have a fenced yard for the family dog? Let buyers know that your townhouse has the features they crave, just like a single-family home or condo. The details may surprise them and increase your buyer pool in the process.
Challenge: Competition with new construction
New construction poses a challenge to townhome sellers. Ernst sees this a lot, especially in expanding urban areas. “New construction in the townhome world puts a lot of existing townhome owners at a disadvantage for the sale of their home, even though the inventory has been low across most of the country.”
Tip: Refresh and revitalize
The boom in townhouse construction is nothing new. According to the Montgomery County Planning Commission, “Since the end of the recession, single-family attached and multi-family housing units have become the dominant form of housing built in the county, averaging 66% of the total number of units built.”
To address the issue, Ernst says, “We’ve been coaching our townhome clients that we really need to show like-new construction.” She recommends visual coordination of all spaces to modernize the atmosphere and compete better against new builds. That could mean fresh interior paint, neutral flooring, or new lighting.
Challenge: Competition within the community
If there are other for-sale townhouses with the same layout, same finishes, and same price, then it may be hard to distinguish your home from the rest. How can you sell fast when there are others in your community already for sale?
Tip: Collaborate with your neighbors and celebrate your strengths
Ernst says that in a competitive situation, she strategically collaborates with the other listing agents. By working together, they can increase traffic to both units, which can help both sellers. “Ultimately, if someone’s going to come and see your property, they’re probably going to see the one that’s next door as well,” she says. “But of course, we want to be the one to sell first.”
Also, just because your townhouse may look like other homes doesn’t mean that it can’t stand out from the crowd. If your particular unit happens to be on an end cap, that is often seen as a plus, given that you’ve only got a neighbor on one side. If your unit happens to have a little more yard, a patio, or a pretty view, make sure those features stand out in the listing photographs and in conversations with buyers.
If you don’t feel that your townhouse has any standout features, consider adding an attractive detail to give it that “wow” factor — maybe a stone accent wall or custom closet shelving. Bottom line: don’t let buyers feel like if they’ve seen one townhouse they’ve seen them all.
Challenge: No one likes paying fees!
Certain buyers are turned off by the HOA fees associated with townhouse ownership. Others may not be able to secure a loan when their lender takes HOA fees into consideration.
Tip: Highlight the benefits of an HOA handling maintenance for you
While owning a townhouse sometimes involves paying maintenance fees to the HOA, you and your agent can use the perks generated from that fee as a selling point.
Does your townhouse have direct access to local trails, a clubhouse, a walking path around a pond, or a pool? Is snow removal or some lawn maintenance provided by the community? These perks make the experience of living in an affordable and beautiful townhouse community more attractive to potential buyers, so be sure to market them in your listing.
Ernst also points out that maintenance costs are a part of any type of home ownership. With single-family homes it could be a new roof here, a new driveway there — those big ticket items really add up.
Many times, she says, “You make out better with an HOA than you would with a single-family home. Having to manage all of those [maintenance] items yourself, not to mention actual coordination of those items, can be a challenge.” Make sure your agent lists out all the maintenance covered by the HOA fee so savvy buyers can start doing the math.
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