Essential Guide to Buying a Townhouse in Austin

Townhomes can offer the best of both homeownership worlds. You can own a stately, multiple-floor townhome that gives you the space and privacy you desire and still enjoy amenities that usually come with apartment-style condos.

In the "Live Music Capital of the World," you’ll probably have a lot of searching before settling on the perfect townhome, but not for lack of options. 

Austin’s vibrant neighborhoods invite you to search for townhouses in the exclusive luxury of Zilker or seek residential bliss in Travis Heights. But before you start narrowing down choices, it’s a good idea to learn about townhouses in Austin and whether they are a good fit for your needs.

Below, we break down the top things you need to know about buying a townhouse in Austin. 

What is a townhouse in Austin?

Townhouses offer a unique opportunity to buyers who want to enjoy the feel of a home while being part of a community of neighbors.

In general, a townhouse closely resembles a single-family home. The main difference is that most share a party wall with a neighboring townhouse, meaning you’ll have neighbors next door. You’ll also be responsible for homeowner’s association (HOA) fees since the townhouse will usually be part of a group of townhomes managed by an HOA. 

Their design varies depending on where you look. If you venture into Mueller, for example, you’ll run into townhouses that can easily be mistaken for single-family homes. These often come equipped with two garage spaces, balconies, and multiple floors with plenty of room to decorate as you see fit. 

If you explore Zilker and the neighboring members of the coveted "78704" zip code, you might run into pockets of terracotta-roof townhomes centered around a luxuriously-decorated cul-de-sac. In addition to private garage space, some of these townhomes even have private elevators. 

Townhouses combine the best of both worlds for a manageable price

Homebuyers shopping in Austin might have noticed that home prices can be exorbitant. As Austin continues to develop rapidly, those prices may stay strong for a while. 

For aspiring buyers who dream of having their own private home, townhouses can become a worthwhile option for a more affordable price. For example, in Mueller, a planned-community neighborhood, searching for a townhouse instead of a stand-alone home can sometimes yield a price difference in the hundreds of thousands. Yet those townhouses offer similarly generous square footage and amenities that usually come with condo ownership.

Though most townhouses have limited features as opposed to a high-rise condominium building, you may still enjoy a shared community space, parking spots, and even a pool, depending on the townhouse. 

The trade-off for affordability comes in the form of HOA fees. Many townhouses are managed by a homeowner association, which generally takes care of specific maintenance issues and shared community space. In return, townhouse owners must pay a monthly HOA fee ranging from $500 to a few thousand. 

Keep in mind, however, that unlike co-ops or condo buildings, many townhouse HOAs won’t be responsible for certain repairs, such as roof leaks or HVAC systems. Therefore, do your due diligence to avoid unpleasant surprises. 

Have a clear idea of your maintenance responsibilities

Finding the perfect townhouse just a stone's throw away from Austin’s best live music venues can spin any buyer’s head.

But no matter how exciting the prospect is of being an Austin homeowner, remember to check the title report of the townhouse you want to buy, as well as the HOA or condo documents if applicable.. 

Each HOA has different rules, so it’s up to you to do the due diligence necessary to understand what repairs and maintenance you will be responsible for once you are the owner. 

Get pre-approved before making an offer on a townhouse

Austin’s real estate market moves quickly and has plenty of new construction options to choose from. Many of those are townhouses, yet you won’t find them all over the city. 

There are fewer townhouses in Downtown Austin than Boulder Hills, for example, and the attractive price tag may cause a high demand for these homes. This could mean multiple offers may be on the table when you decide this is the townhouse you want. The goal then becomes to stand out to the seller so your offer has a higher chance of getting accepted.

Explore as many mortgage lenders as you can and get pre-approved before you make an offer. Coming to the table with a pre-approval immediately shows you are financially capable of making this purchase. The seller may breathe a sigh of relief knowing there may be no financing contingencies to worry about or the deal falling through because the buyer couldn’t secure a mortgage. 

Do a thorough inspection before buying

Even if you choose a sleek, new townhouse on the shores of Lake Austin, always take the time to do proper due diligence on the townhouse before you buy.

Though this rule holds true for any property, inspecting a townhouse thoroughly holds its weight in gold because of the possible maintenance rules the HOA administers. You may end up being responsible for certain repairs and renovations that can set you back financially. Doing proper due diligence and inspecting the property thoroughly can help prevent any sudden surprises down the road. 

In particular, pay attention to the major systems of the home, such as HVAC, the roof, and plumbing. Repairing or replacing these is a significant expense, so be sure to hire professional inspectors to ensure everything checks out with these items so you can move forward with no reservations. 

Find ways to save when buying a townhouse in Austin

As a homebuyer in Austin, any way you can save when purchasing a home can be a massive weight off your shoulders. 

Though townhouses generally carry a more manageable price tag than single or multi-family homes, buyers still have many expenses to worry about. These can include hefty closing costs, escrow fees, or furniture expenses. 

If you choose to work with a buyer’s agent, aim to work with a brokerage specializing in commission rebates. These modern real estate tools allow a buyer’s brokerage to return a portion of their commission to the buyer. 

For example, Prevu offers the largest commission rebate in Austin, utilizing its tech-forward approach to streamline the homebuying process. Buyers who work with a Prevu agent can receive up to 1% of the purchase price of a home via the company’s buyer rebate.. 

These savings help buyers offset closing costs, replenish their savings, or give them extra funds to make upgrades to their new townhouse. 

Interested in buying a townhouse in Austin? Browse listings and learn how you can save with Prevu’s Smart Buyer Rebate.