It’s not a secret that Orange County is one of the best places to live in California. But when it comes to buying a home, there are sometimes a lot of decisions to be made.

Should you buy a single-family home? Can you handle the expenses? What if a home by the beach is hard to maintain? 

Only your needs, preferences and financial situation can help answer those questions. But the silver lining about Orange County’s real estate market is its healthy selection of townhouses. Townhouses are a typically more affordable option for California homebuyers that allows them to enjoy the best of both homeownership worlds.

So what do you need to know about buying a townhouse in Orange County? Below, the team at Prevu Real Estate breaks down the top things you need to keep in mind before you start your search.

Buying a townhouse in Orange County

• What is a townhouse in Orange County?

• How to choose the right townhouse

• Get a mortgage pre-approval

• Read the fine print

• Work with an experienced agent

• Find ways to save when buying a townhouse

What is a townhouse in Orange County?

Townhouses are typically defined by shared walls with neighboring units and multiple stories within the individual home. 

Because of this unique blend, townhouses have the unique opportunity to combine condo living - and some of the amenities they typically offer - with classic homeownership, as you’re in charge of maintaining your entire townhome. 

In Orange County, townhouses can range from homes with modest square footage in the heart of vibrant cities like Anaheim or Santa Ana to more spacious townhomes in quiet suburban settings such as Irvine or Newport Beach.

Most Orange County Townhouses offer two to four bedrooms, often accompanied by a private outdoor space, like a patio or a small yard. You also may find that many townhouses are managed by homeowners associations (HOAs) and include shared amenities such as swimming pools, gyms, and parks, for residents to enjoy.

How to choose the right townhouse

Start by identifying what you're looking for regarding location, size, and architectural style. Are you drawn to a more urban setting with easy access to shops, dining, and entertainment, or do you prefer a quieter, suburban environment with a more laid-back vibe?

While it may be tempting to start scouting prime beachfront with easy access to the water, it’s crucial to consider your needs and lifestyle. Will you need a home office? Extra bedrooms for a growing family? Ample outdoor space? 

Identifying specific features and planning ahead can not only help narrow down your options so you can search faster but also ensure that you will be comfortable with your purchase in the long run.

Get a mortgage pre-approval

Before you start your townhouse hunt, securing a mortgage pre-approval should be the first course of action. This not only gives you a clear idea of how much you can afford but also signals to sellers that you're a serious and prepared buyer.

Mortgage lenders will do a thorough check of your credit history, income, assets, and debts to determine the amount they're willing to lend you and the interest rate they'll charge. This information can help refine your home search and ensure you only look at townhouses within your budget.

Orange County is packed with desirable beach towns and neighborhoods, and it can get tempting to stray outside your budget if you find an ideal home. Be sure to use that pre-approved mortgage loan as a guideline for your budget to make sure you make an informed decision.

Read the fine print

One of the key elements of townhouse ownership is the HOA fee, which is used by the association to maintain shared spaces and provide amenities. These fees can vary greatly depending on the range and quality of amenities offered.

But unlike condo buildings, townhouses sometimes differ in how amenities are serviced and what owners are responsible for. 

Be sure to ask about what maintenance responsibilities you may have as an owner and what will be handled by the HOA, as well as what restrictions there may be on renovations usage of public spaces. The last thing you want to do is agree toa significant HOA fee only to learn that you’ll have to pay for things you thought would be included.

Work with an experienced real estate agent

An experienced real estate agent can make the process of purchasing a townhouse much smoother. 

Working with a knowledgeable broker will give you access to valuable insights about the local market and home price history in areas you’re interested in, which in turn can help you negotiate a better price. 

Moreover, an agent who is well-versed in Orange County’s HOA rules and regulations can help guide you through the rules, regulations, and fees that come with joining an HOA, ensuring that there are no unpleasant surprises down the line.

Most importantly, they can be a huge asset in helping you save money when you buy; the key is to work with an agent that offers commission rebates.

Find ways to save when buying a townhouse

Working with a knowledgeable real estate agent that can complement your home buying experience with a commission rebate can be a difference maker. 

Commission rebates, also known as buyer rebates, are essentially a part of your buyer broker’s commission fee delivered back to you as savings. Modern brokerages like Prevu Real Estate choose to invest in modern online real estate tools and salaried agents to unlock commission rebates for buyers.

Currently, Prevu offers the largest commission rebate in California, allowing buyers to potentially receive up to 2% of the townhome’s final purchase price. For instance, if you were to buy a townhouse in Newport Beach for $1,375,000 with Prevu, you may receive a rebate totaling up to $27,500.

That extra cash after closing can offset pricy closing costs, help cover unexpected expenses, or replenish your savings.

Interested in buying a townhouse in Orange County? Browse listings in your favorite neighborhood and see how much you can save with Prevu’s Smart Buyer Rebate.