How to Sell a Townhouse Quickly?

A townhouse can be a fantastic asset to own- they usually have fewer maintenance requirements than a single-family home but provide many of the same benefits. Homeowners, real estate investors, and tenants love them for their convenience and independence.

When it is time to sell your townhouse, there are usually a few extra considerations. And one of the main goals when selling any real estate is to sell fast. Selling quickly means that you are likely getting the most attention from buyers in a short period of time and generating the competition you want. You want to know how to sell a townhouse quickly to achieve the highest possible price.

While a townhouse is similar to a single-family home, they have some key differences you need to keep in mind when selling. There are shared walls, shared fences, and usually common areas that will play a part in the home sale process. Additionally, most townhomes are part of a homeowners’ association (HOA), meaning that the HOA needs to be made aware of the sale and that HOA fees must be disclosed to buyers.

This article gives you the expert guidelines you need to prepare your property and sell your townhouse fast.

Types of Townhouses

There are two main types of townhomes, and what differentiates them most is how they are owned.

Condo Townhouses

Most property owners who buy townhomes in newer developments buy condo townhouses. In condo townhouses, the homeowner owns the interior space of their unit but shares ownership of the common areas and the land with other residents in the development.

These common areas typically include things like gardens, walkways, parking lots, and recreational facilities, all managed by a homeowners’ association (HOA).

Being a part of an HOA is a major differentiator. A good HOA can be a selling feature for a condo townhome, but if there are issues with the HOA, it can make it difficult to sell the house fast. As with any property part of an HOA, the home’s sale price has to reflect the added cost of HOA fees.

When you are part of an HOA, there are typically restrictions in the covenants or bylaws that limit your property modifications. While this can ensure that all properties in the development have a uniform standard and appearance, it can be frustrating for property owners who prefer to customize. Additionally, some HOAs may have restrictions on leasing, rental caps, or buyer approvals, which could affect the sale process.

An example of a condo townhouse is a two-story unit, complete with a private garage and small backyard that is in a housing development with a park, pool, and additional guest parking. The HOA maintains the common grassy areas, park, pool, sidewalks, and the building’s exterior.

Fee Simple Townhouse

In fee simple townhouses, the homeowner owns the interior and exterior of their unit, including the land on which it sits. This ownership structure provides more autonomy than condo townhouses, as the owner is responsible for maintaining their property inside and out. There is no homeowners’ association to manage communal areas or enforce rules, giving the owners more freedom in how they use and modify their property.

The term “townhouse” originated in early England, when it was used to describe the city residence of a noble or wealthy family who also owned a country estate. Today, cities and metropolitan areas are filled with townhomes as they are an ideal house type for more densely populated areas.

Examples of fee simple townhouses are townhomes built closer to city centers with shared walls. These properties usually have two or more stories and much of the same features as a traditional single-family home, like a garage and backyard. However, they have the distinguishing feature of at least one shared wall with a neighbor.

Are Townhouses Hard to Sell?

Townhouses can be both appealing and challenging to sell, depending on various factors. Like single-family homes, different types of townhouses can have unique selling features and downsides that sellers should be aware of during the selling process.

HOAs: Benefit or Negative?

Condo townhouses may appeal to buyers seeking a low-maintenance lifestyle or investment, but the presence of an HOA can impact resale value and reduce buying power. Lenders consider HOA fees when calculating the buyer’s debt-to-income ratio, which can limit the size of the mortgage they qualify for.

For example, if a townhouse has high monthly HOA fees, the buyer may only qualify for a smaller loan, thus reducing their overall budget for the purchase. A high HOA fee can make the monthly payments on a townhouse nearly as expensive as a small single-family home.

On the other hand, a fee simple townhouse offers more autonomy, which can be a selling point for those who prefer to have control over their property, but these properties are usually located in urban centers.

Being part of an HOA can either be a benefit or a negative, depending on the buyer. When selling a townhouse that’s part of an HOA, it’s important to highlight the HOA’s benefits and other attractive selling features of the property.

New Construction

New construction is usually an excellent selling feature that attracts buyers. Buyers often favor new constructions for modern amenities, energy efficiency, and contemporary design. Townhouse buyers usually value convenience, so getting the confidence that the newly built house won’t come with additional work or regular repairs is an attractive feature. Sellers of older townhouses may need to invest in updates or price their homes competitively to attract buyers.

However, while new construction is sought-after, it usually comes with a higher selling price. The higher price of a newly built townhouse might deter potential buyers, so sellers of updated older properties have an advantage.

Be Prepared for a Limited Buyer Pool

Unless you’re selling a townhouse in an area primarily consisting of condos and townhomes (like an urban center), you will likely have a smaller buyer pool than the single-family market. Most townhouse buyers choose this asset class because it fits within their budget, not necessarily because they don’t want a single-family home. Therefore, your competition isn’t just other townhouses but also more affordable single-family properties.

How to Sell a Townhouse

While selling a townhouse has a few extra considerations compared to a single-family home, if you take the necessary steps and price and market it well, you should be able to sell the house quickly.

Hire a Real Estate Agent

An experienced real estate agent is your partner when selling any piece of real estate. The right agent will understand your market and the demands of buyers looking for similar properties. Before you start making changes to your home, your first step should be to connect with a real estate agent with a strong track record selling townhomes in your area (or even within your development).

Finding an agent who understands townhomes should start with FastExpert. FastExpert gives you the platform to search local real estate agents, compare their experience, read reviews, and verify their experience matches your needs.

Another great way to find an agent is to talk to your neighbors. One of the benefits of living in a townhome is being part of a close community. You want to find an agent with experience working within your area, especially if you are part of an HOA. An agent that already sold properties within your HOA will understand its benefits and limitations; therefore, they can better market your property to potential buyers. Ask owners of recently sold properties in your area who the selling agent was and about their experience.

Your real estate agent can make or break your sales experience. Once you have narrowed your selection, ask a potential real estate agent about their marketing strategy to sell your house. Discuss their anticipated plan to ensure your townhouse sells quickly.

Ensure Your Current Home is Poised to Sell

The selling process starts before your agent lists your home on the MLS. If you want to sell a house fast, you need to ensure it appeals to a broad audience of potential buyers. A home in selling-ready condition should be bright, staged (professionally or with your own furniture), and clean.

Start by bringing your real estate agent through your townhouse so that they can evaluate its condition and make recommendations. Your agent knows the competition and how to present a property in its best light. They will recommend repairs and changes that will help you sell fast and for the highest price.

Declutter and Clean Your Townhouse

The easiest and most cost-effective way to add value to any house is by decluttering it and giving it a thorough, deep clean. You want potential buyers to be able to envision their lives in the townhouse, which fosters an emotional connection to the property. Buyers who feel emotionally invested in a home will make higher offers.

Begin the process by decluttering your space. Remove and pack away any excess furniture, decorative items, personal belongings, and photos. You want to have limited decoration on surfaces and minimal personal effects on display. Remember, this is only a temporary while the townhouse is on the market. Don’t forget about closets and other storage spaces, as buyers will inspect these. Organize and reduce the contents to highlight storage capacity. It can be helpful to pay for a short-term storage unit to hold your belongings throughout the sale process.

Next, it’s time to give your home a deep clean. Here are some tips for cleaning your townhouse before selling:

1. Hire a professional carpet cleaner to refresh all carpets and area rugs.
2. Clean or redo the grout in bathrooms and kitchens so that it appears new.
3. Thoroughly mop all hardwood floors and tiles. Consider re-sealing hardwood floors to add an extra sheen.
4. Clean out all appliances, including ovens, microwaves, barbecues, refrigerators, and laundry machines.
5. Dust light fixtures, fans, and blinds.
6. Change the HVAC filter.
7. Wash windows and buff using a glass cleaner to ensure they are clear.

Make Necessary Repairs

Before listing your townhouse, addressing any visible issues is crucial to make the property more appealing to potential buyers. Even minor repairs can significantly impact the perception of your home’s condition and value. Deferred maintenance gives the impression that a home has not been well cared for and can negatively impact buyers’ perceived value of the property.

Here are some common repair and maintenance tasks to tackle to help make your townhouse feel like new:

• Fix any leaks, drips, or slow drains. Repair any damaged paint the leak caused.
• Ensure all outlets, switches, and lights are functioning properly, including replacing burnt-out lightbulbs.
• Repaint or touch up walls, particularly in high-traffic areas or where there are scuffs and marks. If you are painting entire rooms, make sure you choose a neutral color that coincides with the rest of your property.
• Repair any squeaky doors, and ensure windows open and close smoothly.
• Inspect and repair any damage to the exterior, such as cracks in the siding or issues with the roof.

By addressing these common issues, you help prevent potential buyers from being distracted by repair needs and increase their confidence in the property’s overall condition.

Enhance Curb Appeal

First impressions are crucial when selling your townhouse, and curb appeal plays a significant role in attracting potential buyers. Most buyers will make a subconscious assumption about a property before they even walk through the front door, and you should make every effort to ensure that assumption is positive. A well-maintained exterior suggests the home is cared for, inviting buyers to see what’s inside.

While townhomes usually have a less impactful curb appeal than their single-family counterparts, you still want to make the property present its best. Here are some tips for improving curb appeal:

• Trim bushes, mow the lawn, and add fresh mulch or seasonal flowers to create a tidy, welcoming look.
• Powerwash the exterior and walkways to remove signs of age and weather.
• Touch up or repaint areas where the paint is faded or peeling, especially around the front door and windows.
• Consider painting the front door an inviting color (or repainting it if your HOA doesn’t allow you to change the color), and add a new doormat.

By enhancing curb appeal, you create a positive first impression in professional photos, and that can set the tone for a successful showing.

Stage for Sale

Even if you are selling a smaller, less expensive property, staging is still a powerful tool that can add value and help you sell your townhouse faster. Strategic arrangement of furniture and decor can highlight the home’s best features, make it feel larger, and allow potential buyers to envision themselves living there.

Whether you’re staging yourself or hiring a professional, here are some tips for staging a home for sale for a quick sale:

• Use mirrors to increase light in darker rooms.
• Bring in light-colored furniture in a neutral palette.
• Strategically place furniture for easy flow to make rooms feel larger and more open.
• Use rugs, furniture arrangements, and decor to clearly define different areas, especially in open-concept spaces.
• Avoid placing furniture against walls.
• Emphasize unique elements like exposed brick, built-in shelves, or large windows to make them stand out.

If possible, hire a professional stager, even for partial staging. They can blend your personal furniture with their pieces to create a cohesive and appealing look.

Price Your Townhouse Correctly

How your price your townhouse will have a direct impact on how quickly you sell. To sell a house fast, you must price competitively to attract the most buyers. Your real estate agent should be your guide when setting the right price. They will provide a list of comparable homes sold in the area that supports their price recommendation.

When deciding on a price, remember to factor in any HOA fee. A nearby townhouse might seem like a comparable sale, but if it doesn’t have an HOA or has a low HOA fee, then that would cause it to demand a higher price.

Remember, overpricing will cause your house to sit on the market longer. A fast home sale usually leads to a higher sale price, so avoid overpricing.

Market Your Townhouse

Your real estate agent should take the lead on marketing your townhouse. However, there are some creative ways you can help with marketing to promote a fast sale.

Some marketing strategies that help a house sell fast include:

• Investing in a professional photographer and videographer.
• Having the videographer make some short, vertical videos for use on social media.
• Listing the property on major real estate websites, community platforms, and social media.
• Creating a unique landing page for the property outside of traditional web platforms.

Most importantly for townhouse owners, keep your home clean and organized during the marketing stage, and be ready for open houses or private showings at a moment’s notice.

Receive Offers and Negotiate

It’s exciting to receive an offer on your townhouse. In an ideal world, the first offer you get will surpass your expectations, or even better, you’ll receive multiple offers. Multiple offers mean you can pick the offer that provides the best terms and price or even negotiate better terms. However, more often than not, the offer process involves negotiation, so it’s crucial for real estate agents to be skilled negotiators.

When evaluating offers, consider the price but also weigh it against other factors like contingencies and closing timelines. Review any contingencies, such as inspections, financing, or the sale of the buyer’s current home. Contingencies can affect the reliability of the offer. For example, a cash buyer at a slightly lower price may give you the certainty of close that you need. Don’t forget to evaluate the buyer’s financing and make sure they are pre-approved and have the necessary funds for a down payment.

Closing the Sale

Once you have a fully executed contract, you’re in escrow, and it’s time to take the necessary steps to ensure the sale closes smoothly.

Some considerations that townhome owners should keep in mind are that they will need to:

• Ensure all Homeowners’ Association (HOA) documents are up-to-date and provided to the buyer. This includes details on fees, rules, and any pending assessments.
• Address any shared wall agreements or responsibilities for exterior maintenance, which might involve coordination with neighbors.
• Verify that the townhouse is properly insured and that the buyer gets the right insurance, especially if the HOA has specific coverage requirements.

In addition to these townhouse-specific tasks, buyers will need to follow the typical process for closing a sale. The sale closing process includes:

• Facilitating home inspections and negotiating on any repairs.
• Preparing for a home appraisal is necessary if the buyer is getting financing.
• Making sure that title will be delivered clear, which involves paying off any liens attached to the property.

Once all contingencies are removed, the transaction is cleared for close. A day or two before closing day, the buyer and their agent will arrange a final walkthrough to verify that any repairs have been completed and the property is in the agreed-upon condition. On closing day, both parties sign the final documents, and the buyer’s funds are transferred to the seller.

Handle HOA Considerations

Selling a townhouse that is part of an HOA requires some additional considerations. Sellers with the assistance of their agents must ensure the HOA is informed of the sale. Some HOAs have an approval process where potential buyers must submit applications and be reviewed by the HOA board. This process could include background checks, financial reviews, or interviews. Other HOAs may have more lenient policies and only require notification of a sale rather than formal approval.

Sellers must provide buyers with the HOA’s governing documents, financial statements, and any pending assessments or rule changes. They also must disclose HOA fees and any expected changes to feed. HOAs may charge a transfer fee when ownership changes, which should be clarified during negotiations.

These considerations help prevent delays and avoid surprises to a smooth transaction when selling a townhouse within an HOA.

Your Next Steps to a Quick and Profitable Townhouse Sale

Selling a townhouse quickly and at the best possible price requires careful planning, expert advice, and strategic execution. From understanding the unique aspects of townhome ownership to the complexities of HOAs and pricing your property right, each step plays a crucial role in achieving your goal. Work with a knowledgeable real estate agent who understands your townhouse market to ensure a smooth and successful sale.

FastExpert is here to help you find that expert. With FastExpert, you can easily search for top-performing real estate agents in your area, compare their experience, and choose the one best suited to help you sell your townhouse quickly and efficiently. Connect with a professional through FastExpert today and take the first step toward a successful townhouse sale.