Should I Buy a Condo, a Townhome or a House as My First Home in Erie?

Should you buy a condo, a townhome or a house as your first home in Erie? The right one is the home that fits your budget, your daily routine and the amount of upkeep you want to take on, and there is no single answer for everyone. Each type trades something for something else, so the goal is to know the trade before you fall in love with a listing.

If you are new to all this, the three words can blur together. I explain them plainly below, and I walk you through the questions that matter most, including the monthly costs that don't show up in the price.

I'm Carol, and Homes by Carol is my real estate practice here in Erie. Carol Vanlandingham is a REALTOR® with eXp Realty in Erie, Colorado, helping people through life transitions, downsizing, first homes and relocation across Erie, Boulder County and Northern Colorado. I've been licensed for 10 years and have lived in this area for over 31 years. Before that I fixed and flipped houses while raising my three boys, so I look at homes with a close eye on what they will ask of you after move-in.

Here are the three in everyday words.

• A condo. You usually own your own unit, and you share the building and the grounds with your neighbors. An association looks after the shared parts.
• A townhome. It often shares one or more walls with the home next door, and it usually has its own front door and its own small outdoor space. Many townhomes also belong to an association.
• A single-family house. It stands on its own lot. You are responsible for the whole home, inside and out, although some neighborhoods have an association too.

First homes around Erie and Boulder County come in all three forms, and prices vary from one town to the next. Because the details differ from one building and one neighborhood to the next, the paperwork for the specific home always matters more than the label.

Think about an ordinary Saturday. Who handles the roof, the lawn and the snow? Do you want a yard, or would you rather lock the door and go?

A condo or townhome often means less to maintain yourself, because an association handles some of it. In return, you pay regular dues, and you follow the association's rules. A house usually gives you more space and more freedom, and it also gives you more to look after.

Neither choice is better. It depends on how you want to spend your time and your money. Some buyers tell me they want a yard for a dog. Others tell me they would rather spend weekends hiking than mowing. Both are good reasons.

This is the order I use with first-time buyers. Your situation may change the details, and I'll explain yours as we go.

Step 1: Get pre-approved first

I ask every buyer to be pre-approved by a lender before we tour. It tells you what you can comfortably spend each month, and it keeps you from touring homes that don't fit. Your lender is also the right person to explain loan types, and you can ask whether the type of home you are considering changes anything about your loan. If you need a lender, I have a list I recommend, and you're free to use anyone you choose. My article on getting ready to buy your first home walks through this step.

Step 2: Write down how you live

Before we look at a single home, we talk about your real routine. How do you get to work? Do you have a pet? Do you work from home? Do you travel a lot? Do you want a yard, a garage, a second bedroom for guests? The list guides the search, so you see fewer homes and better ones.

Step 3: Add up the monthly cost, not just the price

The price of the home is only one piece. For a condo or townhome, find out what the association dues are and what they cover. For many homes in Erie's newer neighborhoods, there may also be a metro district that adds its own charge on top of property taxes. Put every one of these numbers into your monthly budget before you write an offer. The same goes for a house: plan for the repairs that come with owning one.

Step 4: Ask for the association papers early

If a home has an association, ask to see its documents before you make an offer. They tell you the dues, the rules and how the association is run. I help you read them, and I tell you what I would want to ask about. Take your time here. If something confuses you, that is a good reason to ask, never a reason to feel embarrassed.

Step 5: Tour with the trade in mind

When we tour, I tell you what I see in each home, good and bad. I'm not a home inspector, and I always recommend a professional inspection, but I notice things like the age of a roof or work that wasn't done well. My article on what to look for when touring a house can help you sort your notes.

Step 6: Compare, then decide

When you find the one, I show you what similar homes nearby have sold for, so you can see how it is priced. Then we put an offer together, and you decide. I advise. The decision is always yours. Here's a full guide to making an offer as a first-time buyer.

These come up often, and each one is easy to avoid once you know about it.

• Comparing only the price. A lower price can come with higher monthly dues, and a higher price can come with fewer extra costs. Compare the whole monthly picture.
• Skipping the association documents. The paperwork tells you what you are signing up for. Read it before you make an offer, not after.
• Forgetting the upkeep of a house. A yard and a roof are wonderful until something breaks. Plan for it.
• Choosing by label instead of by life. Pick the home that fits your routine, not the type you think you are supposed to want.
• Ignoring the drive. A home that costs less but adds a long drive every day may not save you what you expect. Erie is about 15 minutes from Boulder and Longmont, depending on traffic, so test the route yourself.
• Being afraid to ask. A question you don't ask can turn into a surprise you didn't want. Ask all of them.

Is a condo or a townhome cheaper than a house?

It depends on the home, the building and the town. Prices vary a lot, and the monthly dues can change the picture, so I look at the full monthly cost with you before you decide.

What are HOA dues, and what do they cover?

They are regular payments to an association that looks after shared parts of the community. What they cover differs from one association to the next, so ask for the documents and read what is included.

Can I change my mind about the type of home as I look?

Yes. Many buyers do. Touring a few different homes often shows you what you really want, and I never rush that.

Does the type of home change my loan?

Possibly. Your lender is the right person to answer that for your situation, so ask them before you tour.

Do I need an inspection on a condo or a townhome?

I always recommend a professional inspection, whatever the home type. We also go over the association documents together.

I listen before I advise, and I explain every step before you reach it. You can read more about how I work with first-time home buyers, or see where to start at How I Help You Buy a Home. If you would like to see what Erie offers first, visit my Erie page. Even if your first home is a year away, an early conversation costs nothing and gives you time to prepare. Send me a note or call me at (303) 522-3130.