Do freestanding condos typically cost less per sq ft than a single family house?

[Jerry1]

I’ve been looking at moving and came across something that doesn’t make sense to me. Hoping to get some input. I went and looked at a free standing ranch house for about $390K for 1500 sq ft. It was a well maintained house but it was dated. Still, a nice house that could be lived in with no problem. I’ve also looked at some freestanding condos and they seem to be a much better value, which makes me think I’m missing something. A good example of a freestanding condo for sale right now is as follows: 2391 sq ft, 4br, 2.5 baths, recently updated listed for $385K.

Both are in good areas with good schools, etc. I’m trying to figure out what I’m missing. It makes sense to me that a condo might seem a little better of a deal until you add on the HOA fees. In this case that’s about $400/month. I also get that since you’re not getting a yard, the land value might be part of the difference. Still, it just doesn’t seem like a very nice condo would be lower in cost than a small ranch house that is dated. Is this typical?

Below are the two listings I’m talking about. The house is listed at $374,900 but I value it at $390K because I just put an offer in for it at $390K which did not get accepted. The condo is one I want to go look at but want to clear up the confusion in my mind before I bother.

The condo:

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www.realtor.com

The ranch house:

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www.realtor.com

 

[disneysteve]

I have never heard the term free standing condo. That’s kind of an oxymoron. The picture at that link is a house. I think there was just an error where they tagged it as a condo.

 

[rk911]

Me? If I had to choose I'd take the house in a heartbeat simply because there's no HOA which means no petty 'Karens' measuring blades of grass or shapes and colors of trash cans.

 

[disneysteve]

So according to Wikipedia there is such a thing as a single unit condo but their description is still that of a single home with an HOA handling exterior maintenance. Very odd.

 

[disneysteve]

Me? If I had to choose I'd take the house in a heartbeat simply because there's no HOA which means no petty 'Karens' measuring blades of grass or shapes and colors of trash cans.

Same. I would definitely choose a non-HOA house over an HOA house all things being equal.

 

[aja8888]

That house in Livonia is a couple of blocks from where I used to live in 1975.

 

[2HOTinPHX]

They are both very nice and I think you summed it up nicely. A single family home on a bigger lot is going to appeal to more people. Just the word condo will probably turn off some people. Just look at the HOA thread here and some of the negative comments.
You take the home needing updating and put it on the smaller lot and the value would go down. You put the updated condo on the bigger lot and it's value would increase.
I do love that the condo has no shared walls typical of condos. It is nicely updated and seems to be in a beautiful area. Down sides are the HOA fees and those property taxes but if that's what you have to pay in your area you have probably already taken them into consideration.

Happy home hunting.

 

[Jerry1]

So according to Wikipedia there is such a thing as a single unit condo but their description is still that of a single home with an HOA handling exterior maintenance. Very odd.

In laymen’s terms, they are a house but they are controlled by the HOA. The ones I’ve seen don’t include any building maintenance. However, for example, if they think you need to paint your house, they can insist you do so. Basically, they’re similar to 55+ communities in that the HOA handles any grounds and amenities and you deal with the house. Freestanding or not, I still see the same cost per sq ft difference with all the condos I’ve looked at and just wonder what drives that. The two a showed are some of the more extreme examples if come across.

 

[Jerry1]

They are both very nice and I think you summed it up nicely. A single family home on a bigger lot is going to appeal to more people. Just the word condo will probably turn off some people. Just look at the HOA thread here and some of the negative comments.
You take the home needing updating and put it on the smaller lot and the value would go down. You put the updated condo on the bigger lot and it's value would increase.
I do love that the condo has no shared walls typical of condos. It is nicely updated and seems to be in a beautiful area. Down sides are the HOA fees and those property taxes but if that's what you have to pay in your area you have probably already taken them into consideration.

Happy home hunting.

Yes, the taxes are typical in this area. The condo is in a little bit pricier county. It’s really only the HOA fees that are a differentiator.

 

[rk911]

In laymen’s terms, they are a house but they are controlled by the HOA. The ones I’ve seen don’t include any building maintenance. However, for example, if they think you need to paint your house, they can insist you do so. Basically, they’re similar to 55+ communities in that the HOA handles any grounds and amenities and you deal with the house. Freestanding or not, I still see the same cost per sq ft difference with all the condos I’ve looked at and just wonder what drives that. The two a showed are some of the more extreme examples if come across.

Good Lord willing and the creek don't rise my wife and I will never have to share walls with anyone or live in an HOA.

 

[2HOTinPHX]

Same. I would definitely choose a non-HOA house over an HOA house all things being equal.

But things may not be equal. Living in an HOA area can help keep your neighborhood from looking run down. Ours has never been intrusive like some have posted about. We don't have people who store boats, motorhomes, cars in need of repair sitting in the driveway or lawn area. We have no homes painted in purple and yellow. We still joke we live on the rental side of the road as someone who lives in the bigger fancier homes down the road said to us. Lots of homes could use a refresh but the HOA isn't that pushy.

 

[Jerry1]

We’re struggling with what to do at the moment. We live on an acre and I’m trying to figure out how far to downsize (the yard, not necessarily the house). We basically tell ourselves that if we move into a condo it’s an acceptance that we live our life primarily indoors and don’t want a dog (we don’t currently have one). In that case, if all the HOA focused on is how the outside looked, I couldn’t care less and would in fact expect that the are is well maintained. Buying the house with a yard says that we still want to do some outside things like yard work, gardening and have a dog. Personally, I’m leaning toward giving all those things up and even with a house, I’m probably going to farm out most of the yard work and snow removal. Not sure one way or the other about the dog.

 

[2HOTinPHX]

For me it would be the perfect set up except for the stairs. I am so tired of yardwork and worrying about the plants and the yard. Wife and I can hardly agree on how much to prune things back. When we hire someone to do it they do a worse job than we do.
I just want a small deck to look out on a nice view that someone else maintains. That "condo" with no shared walls looks ideal. We are used to a little privacy in back yard with fences but no backyard neighbors in that condo.
What's with all that white stuff on the ground though.... LOL

 

[rk911]

But things may not be equal. Living in an HOA area can help keep your neighborhood from looking run down. Ours has never been intrusive like some have posted about. We don't have people who store boats, motorhomes, cars in need of repair sitting in the driveway or lawn area. We have no homes painted in purple and yellow. We still joke we live on the rental side of the road as someone who lives in the bigger fancier homes down the road said to us. Lots of homes could use a refresh but the HOA isn't that pushy.

The problem is one doesn't know what type of HOA a potential buyer will encounter until after the sale. My mother lived in two HOA communities and encountered 'Karens' in both. One of my employees related how she was given a warning for having garbage cans that were the wrong shape or color. Something petty.

We looked at a senior housing development of single family homes in AZ a few years back. Their book of regulations was pretty thick. No parking of cars in your driveway overnight. Want to work on your car? Do it in the garage with the overhead door down. No stains of any sort on your driveway, I understand the arguments for an HOA but Karens can win elections. Not for us.

 

[Jerry1]

For me it would be the perfect set up except for the stairs. I am so tired of yardwork and worrying about the plants and the yard. Wife and I can hardly agree on how much to prune things back. When we hire someone to do it they do a worse job than we do.
I just want a small deck to look out on a nice view that someone else maintains. That "condo" with no shared walls looks ideal. We are used to a little privacy in back yard with fences but no backyard neighbors in that condo.
What's with all that white stuff in the ground though.... LOL

The primary bedroom is on the main level. That’s a requirement if we don’t get a ranch.

Thankfully that white stuff is about done for the year. I actually don’t mind winter and if I never had to shovel/snowblower again, I’d like winter even more.

 

[2HOTinPHX]

The primary bedroom is on the main level. That’s a requirement if we don’t get a ranch.

Thankfully that white stuff is about done for the year. I actually don’t mind winter and if I never had to shovel/snowblower again, I’d like winter even more.

From the listing:
The Ramblewood community is a true gem, featuring nearly half a mile of beautifully landscaped grounds, ideal for leisurely walks among nature and wildlife. A low HOA fee covers lawn care and snow removal, while an annual $1,500 fee provides 24-hour gatehouse security, ensuring your peace of mind.

I'm sold....when do we move in...

 

[Jerry1]

The problem is one doesn't know what type of HOA a potential buyer will encounter until after the sale. My mother lived in two HOA communities and encountered 'Karens' in both. One of my employees related how she was given a warning for having garbage cans that were the wrong shape or color. Something petty.

We looked at a senior housing development of single family homes in AZ a few years back. Their book of regulations was pretty thick. No parking of cars in your driveway overnight. Want to work on your car? Do it in the garage with the overhead door down. No stains of any sort on your driveway, I understand the arguments for an HOA but Karens can win elections. Not for us.

I sincerely get your point. And, having lived on more than an acre most of my adult life and never having been controlled by an HOA, I get the trepidation. Still, nothing in your post give me pause. I’d just get the right garbage cans and I don’t work on my car anymore anyway. I put air in the tires, change the wiper blades and air & cabin filters and put windshield washer fluid in the reservoir. Anything else is done by the mechanic. I actually highly dislike any oil stains on my driveway. The one thing I might care about is whether or not I can park my car outside and how/where guests can park.

 

[Jerry1]

From the listing:
an annual $1,500 fee provides 24-hour gatehouse security, ensuring your peace of mind.

Yeah, I kind of liked the thought of controlled access.

 

[Jerry1]

I’m guilty of taking my own thread off topic. The real question is what explains the significant difference in cost per sq ft. The land and the existence of an HOA are two factors. Anything else? It just doesn’t seem to compute for me given how large the difference is. But maybe it’s just that - it can’t be computed, it’s just customer preference for the single family ranch with a yard of your own.

 

[2HOTinPHX]

The problem is one doesn't know what type of HOA a potential buyer will encounter until after the sale. My mother lived in two HOA communities and encountered 'Karens' in both. One of my employees related how she was given a warning for having garbage cans that were the wrong shape or color. Something petty.

We looked at a senior housing development of single family homes in AZ a few years back. Their book of regulations was pretty thick. No parking of cars in your driveway overnight. Want to work on your car? Do it in the garage with the overhead door down. No stains of any sort on your driveway, I understand the arguments for an HOA but Karens can win elections. Not for us.

I could see how HOA rules and over enforcement could be a pain. I would encourage OP to try and talk to.some neighbors or people in the area to gain some insight on the HOA and perhaps see if they can find an online copy of the rules.
Our HOA has IMO been to lax on rule enforcement but I am not gonna wake up that sleeping giant. The few warnings we got over the 18 years here turned out they had the wrong house. Last year they sent a letter request we trim up the palm trees in our yard. I agree the palm trees in the picture where a mess but they were not ours. We don't have any palm trees. I dropped by the office with a picture of our home and they apologized for the mix up.

 

[marinauser]

In our area, the "condo" would probably be called a fee simple townhouse. As mentioned, you are responsible for all upkeep of the building and the HOA declaration probably gives the association some level of architectural control as to changes that can be made. And I would agree that a biggest part of the price per square foot difference is the land.

 

[2HOTinPHX]

I’m guilty of taking my own thread off topic. The real question is what explains the significant difference in cost per sq ft. The land and the existence of an HOA are two factors. Anything else? It just doesn’t seem to compute for me given how large the difference is. But maybe it’s just that - it can’t be computed, it’s just customer preference for the single family ranch with a yard of your own.

I think you nailed it. Are you working with an agent yet? Perhaps he could give you more clarity and show you some comps?
Location location location as they say.
Will you be close to family if desired? That's our biggest regret relocating. Missing those easy to drive to family events or just stopping in to say hello.

 

[2HOTinPHX]

Well happy home hunting. I will be thinking of you and that condo tomorrow as I do more yard work..... Gotta get it done ASAP as we are already hitting mid 80's next week.

 

[Jerry1]

I think you nailed it. Are you working with an agent yet? Perhaps he could give you more clarity and show you some comps?
Location location location as they say.
Will you be close to family if desired? That's our biggest regret relocating. Missing those easy to drive to family events or just stopping in to say hello.

Family is key. We currently live close to the ranch and are close to my daughter with grand kids. The condo is about 20 min further away. We’re about 10 min now. Thing is, the grand kids are growing up and it’s just reality that they’ll be coming over less and less and a half hour drive really isn’t a big deal. Oldest is 19 and then 15. We hardly see those two. The youngest is 9 so we’re a bit more involved with her still. We moved close when the youngest was born and it’s been good, but times change.

 

[Koolau]

We actually visited several "homes" in a condo "complex" last summer on the mainland. Some were duplexes and some were single homes but all part of the HOA. The kinds of things that the HOA dealt with were aging roofs which were all being replaced within a few months period (paid for by the reserves of the HOA).

We really liked the area and would consider the complex if we need to find a new place to stay when on the mainland. We like the idea of all external maintenance being done for us - all we have to do is pay the HOA dues.