The short answer: a condo means you own your unit's airspace plus a share of a building run by an association, while a townhouse (in its most common Northwest form) means you own the structure and the ground under it outright — "fee-simple" ownership, the same legal category as a detached house. That difference drives almost everything else: how HOA dues and reserves work, how hard the home is to finance, and how it holds its value at resale. On the Eastside, NWMLS put the condo median sale price at $690,500 in August 2026, while fee-simple townhomes get counted alongside detached homes, whose King County median ran about $845,000 that same month. Here's what actually separates the two, and how to decide which fits you.
What you actually own
Under the Washington Condominium Act (RCW 64.34) and its newer successor, the Washington Uniform Common Interest Ownership Act or WUCIOA (RCW 64.90), a condo "unit" is a defined physical portion of the building — generally the space inside your walls. You own that space and an undivided interest in the common elements (the roof, siding, land, hallways, elevators), but the condo association, not you individually, owns and controls the building envelope and decides when and how it gets repaired.
A townhouse, in the form most common across the Eastside and Seattle, is built and sold differently. Even though it shares one or more walls with a neighboring unit, the buyer typically owns the structure and the small lot it sits on outright — the same fee-simple ownership as a detached single-family home. That's why many real estate listings and appraisers treat fee-simple townhouses as a style of single-family home rather than as a separate legal category, while a true condo is always its own legal structure regardless of what the building looks like from the street. A small number of "condominium townhouses" do exist, where a townhouse-style building is legally organized under the Condominium Act — so always confirm which legal structure applies to a specific listing rather than assuming from the architecture alone.
HOA dues and reserves: smaller bill, but not zero
Condo associations are responsible for an entire building — roof, siding, structure, often elevators and parking garages — so dues typically run higher and the reserve fund matters more. Fee-simple townhouse communities commonly still have an HOA, but it usually covers a narrower set of shared elements: a private road, shared landscaping, a party wall, or a shared roofline between two units. Because there's less shared infrastructure to maintain, townhouse dues are typically lower than a comparable condo's.
Washington's reserve study requirement has also gotten more uniform. As of January 1, 2026, RCW 64.90.545 requires a reserve study updated at least every three years for every common interest community in the state — condo, HOA, or co-op, regardless of which law originally formed it. There's an exception: communities with "nominal reserve costs," defined under RCW 64.90.010 as cases where major shared-component replacement costs fall below roughly 50–75% of the annual budget, can be exempt. Many smaller townhouse HOAs with minimal shared building elements may qualify for that exemption, while a condo covering an entire building almost never will. Either way, review the resale certificate or HOA financials before you buy — our HOA & condo documents guide covers what's in them and your 5-day right to cancel after receiving one.
Financing: condos face an extra layer of review
A fee-simple townhouse is usually financed like any other detached home — your lender underwrites you and the property, full stop. A condo adds a second layer: the lender also has to approve the project, not just your unit.
- FHA loans require the condo project (or, in some cases, the individual unit) to appear on HUD's approved condo list. FHA will decline buildings with construction defects, a deficient operating budget, high investor concentration, or unresolved litigation.
- VA loans are stricter still: the entire project must be on the VA's approved condo list before any unit in it — including yours — can be financed with a VA loan. The VA review checks owner-occupancy rate, delinquency rate, reserve funding, and a few other project-level benchmarks. There's no unit-level shortcut the way FHA sometimes allows.
- Conventional loans run their own, generally less restrictive, condo project review (owner-occupancy, insurance, litigation, investor concentration), handled through the lender rather than a public list.
Practical takeaway: if you're using FHA or VA financing, check a condo's approval status (or your lender's willingness to pursue it) before you fall in love with the unit. A fee-simple townhouse skips this step entirely, which is one reason some buyers in a financing crunch lean townhouse over condo.
Insurance and what you're responsible for
A condo association carries a "master policy" covering the building structure and common areas; you typically carry a smaller HO-6 policy for your unit's interior, personal property, and liability. A fee-simple townhouse owner insures the whole structure themselves, similar to a detached-home policy, though a shared wall or roofline with a neighbor can still come with some coordination (and occasional disputes) over maintenance and repair costs that a condo association would otherwise handle centrally.
Where this shows up in 2026 Eastside prices
NWMLS reported an Eastside condo median sale price of $690,500 in August 2026, down about 11.5% year-over-year, with the Kirkland/Bridle Trails submarket the priciest at a $968,000 median. Because NWMLS generally counts fee-simple townhomes together with detached single-family homes rather than breaking them out separately, there's no single published townhouse median — but with King County's overall single-family median around $845,000 that same month, a fee-simple townhouse on the Eastside typically prices somewhere between a comparable condo and a comparable detached home, depending heavily on lot size, city, and age of construction. Ask your agent to pull comparables for the specific property type and neighborhood you're considering — the spread between a condo and a townhouse a block apart can be larger than you'd expect.
Resale value and buyer pool
Because townhouses skip the condo-project financing hurdle, they're generally easier for a wider pool of future buyers to finance, which can support resale value and shorten time on market. Condos can still resell well, especially in walkable, transit-close locations, but a building with FHA/VA approval problems, high investor concentration, or litigation can narrow your eventual buyer pool through no fault of your own unit. It's worth asking about a condo association's FHA/VA approval status and owner-occupancy rate even if you're paying cash today, since it affects who can buy from you tomorrow.
A quick decision guide
- Want the lowest-maintenance lifestyle and don't mind a layer of association control? A well-run condo can work well, especially close to downtown Redmond, Bellevue, or Kirkland.
- Want a yard, more autonomy over your own structure, and simpler financing? A fee-simple townhouse often fits better, usually at a price between a condo and a detached home.
- Using FHA or VA financing? Confirm a condo's approval status early — it can eliminate options before you've even toured them. A fee-simple townhouse avoids this step.
- Either way, read the governing documents. A townhouse HOA with a shared roof or siding and a thin reserve fund can surprise you with a special assessment just as easily as an underfunded condo association can.
Where this comes up most on the Eastside
Condo and townhouse inventory is concentrated around walkable cores — downtown Redmond, Bellevue, and Kirkland all have a meaningful mix of both, often within a few blocks of each other at noticeably different price points and HOA structures. If you're weighing a smaller, lower-maintenance home against a detached house more broadly, our first-time buyer guide for King County & the Eastside covers the full budgeting picture, and our guide to rate buydowns & seller credits is worth a look if a condo's HOA dues are pushing your monthly budget.
Keep the savings whichever you choose — with a flat fee
On an Eastside condo at the August 2026 median of $690,500, a traditional buyer's agent charging roughly 2.5% commission costs about $17,263. A flat $2,999 buyer service provides the same core representation — offer strategy, negotiation, contract and HOA document review, and closing support — for either a condo or a townhouse, leaving more than $14,000 back in your budget for dues, reserves, or moving costs. Compare the full math in flat fee vs. a traditional buyer's agent, and see who pays the buyer's agent in Washington under the current commission rules.
For the statutory reserve study requirement, see RCW 64.90.545.
General information, not legal, tax, or financial advice. Ownership structure, HOA/condo law (RCW 64.34 and RCW 64.90/WUCIOA), FHA/VA approval rules, and market data change over time and vary by specific property — confirm the legal ownership structure and governing documents for any specific listing, check current FHA/VA condo approval status with your lender, and consult a real estate attorney for anything involving meaningful money or risk. Market figures cited are approximate and sourced from NWMLS market reports for the periods noted; actual prices vary by home, property type, and month. Shi Hao Liu is a licensed WA real estate broker (License #26003789) with Kelly Right Real Estate. Verify any WA broker at the WA Department of Licensing.