Is a Townhome a Smart First Home in Colorado Springs?

The short answer: A townhome can be a smart first home in Colorado Springs or Monument because it often costs less than a detached home in the same area and usually comes with less exterior upkeep. Before you buy, check what the HOA covers, how healthy its finances are, whether you own the land under the home or just the interior, what insurance you'll need and any rules on rentals or changes. Those details affect your monthly cost and your resale later.

By Brennan Wolff, Broker, Realtor®

Townhomes don't get as much attention as single-family homes, but they can be a practical way to own in a neighborhood that might otherwise be out of reach. On the north end, you'll find them in newer communities and near shopping, trails and I-25.

Here's what to know before you buy one.

Why do people choose townhomes?

• Price. A townhome is often less expensive than a detached home in the same area, so it can be a way into a neighborhood or school district you want.
• Less upkeep. Depending on the HOA, exterior maintenance, snow removal and landscaping may be handled for you. That's appealing after a Colorado winter.
• Location. Townhomes are often near trails, parks, shopping and highways.
• Equity. Like any home you own, your payments build equity over time.

What should you check before buying a townhome?

What the HOA covers. Some HOAs cover the roof, exterior, snow removal and landscaping. Others cover very little. Get the documents and read them, because the dues only make sense once you know what they pay for.

HOA finances. Ask for the budget and reserve information. An HOA with thin reserves may need a special assessment when a big expense comes up, like a roof replacement after a hailstorm.

What you actually own. Some townhomes are sold with the land underneath, much like a single-family home. Others are legally condominiums, where you own the interior and share ownership of the structure and grounds. That difference affects your insurance, your financing and what you're responsible for.

Insurance. Depending on how the property is set up, you may need a full homeowners policy or a policy that covers just the interior, with the HOA's master policy covering the rest. Ask your insurance agent to review the HOA's coverage, especially its hail deductible.

Rules and restrictions. Check rules on rentals, pets, parking, exterior changes and short-term rentals. They matter if your plans change.

Metro district taxes. Many newer communities on the north end include metro district taxes in the property tax bill. Ask for the total.

Is a townhome a good long-term investment?

It can be part of a good long-term plan, but no one can promise what any home will be worth later. Townhomes in good locations with well-run HOAs tend to hold buyer interest. When you buy, think about who your eventual buyer might be, and what will matter to them, like the HOA's condition, parking and layout.

Many owners use a townhome as a first step, building equity they later put toward a larger home or more land. My move-up guide covers how that next step works.

Townhome or single-family home?

A townhome may fit better if you want lower upkeep, a lower price point or a specific location. A single-family home may fit better if you want more space, a private yard, fewer HOA rules or room to grow. Compare the full monthly cost of each, including HOA dues and insurance, not just the price.

Frequently asked questions

Are townhomes cheaper than houses in Colorado Springs? Often, in the same area, though prices vary by location, size and HOA.

What do townhome HOA fees cover? It depends on the HOA. Some cover the roof, exterior, snow removal and landscaping, while others cover very little. Read the documents.

Do I need special insurance for a townhome? It depends on whether you own the land and structure or just the interior. Your insurance agent can tell you once they see the HOA documents.

Can I rent out my townhome later? Check the HOA's rental rules before you buy, since some limit or prohibit rentals.

Thinking about a townhome?

I'm happy to help you compare townhomes and single-family homes side by side and sort through the HOA details. Start a custom home search, read the Buyer's Guide, or reach out to me directly.