If you are a first-time home buyer or are otherwise limited by your budget, you have affordable alternatives for a home in Marin County: condos and townhouses. There are lots of advantages to consider.
Prices of Single Family Homes in Marin, 2023
| Number Sold | Avg Sold Price | Avg Sq. Ft. | Bedrooms | Baths | Avg Sold $/SF |
|---|---|---|---|---|---|
| 1,859 | $2,015,620 | 2,213 | 3 | 2 | $921 |
Prices of Condos and Townhouses in Marin, 2023
| Number Sold | Avg Sold Price | Avg Sq. Ft. | Bedrooms | Baths | Avg Sold $/SF |
|---|---|---|---|---|---|
| 623 | $874,000 | 1,330 | 2 | 2 | $665 |
Town Houses in Corte Madera
Why Consider a Townhome or Condo?
Price
You get more for your investment: townhomes and condos are about 25% less expensive per square foot. For a 1,500 square foot home, you can save about $400,000 (or 30%) on the purchase price of a condo or townhouse compared to a single family home of the same size.
Homeowner Fees
Condos and townhomes usually come with a monthly maintenance fee, typically $400 to $700 per month. At the higher end, this cost is equivalent to an additional mortgage of $100,000 over 30 years. At an interest rate of 6.65%, you would still realize a savings of about $300,000.
Maintenance Costs
Whether you buy a single family home or a condo/townhouse, you will have ongoing maintenance costs. Living in a condo or townhouse community usually saves a significant amount on maintenance (50% or more) because of the economy of scale.
Single Family Homes
Single family homes require regular maintenance: painting, repairs, roofing, landscaping, pest control, plumbing, landscaping, and more. In California, these expenses can average $17,000 a year. Some estimates are 1% per year of the property value.
Many owners of single family homes will claim that they never spend close to $17,000 per year on maintenance. This can be deceiving. These homeowners may choose not to maintain their home until they have a major problem, like a roof leak, or until they sell their home. Expenses can be large — $20,000 to $40,000 out of pocket for a new roof plus repair of damage from years of a leaking roof (or a reduced sales price on a home that has not had needed repairs.)
Condos/Townhouses
The monthly fee pays for many large maintenance costs, including siding repairs, painting, roofing, landscaping, insurance, and sometimes utilities (water, trash collection).
With a well-managed condo or townhouse, repairs are planned over 10 to 30 years, allowing homeowners to budget for future expenses. Homeowners pay gradually into reserve funds that are held and usually invested until needed. A board of directors for the homeowners association (HOA), composed of about five or more elected homeowners and often a professional management company, have the responsibility of planning and allocating funds, collected monthly from homeowners, for operating costs (for example, landscaping and insurance) and long-term maintenance.
When you own a home, you pay now while you are living there or later when you sell.