Playa Vista Townhome or Condo: Which Holds Its Value Better When You Resell?

Neither one wins on its own. In Playa Vista, the label on a listing tells you less than you might think. The word townhome describes how a home is built. The word condo describes how it is owned. One home can be both at the same time.

What decides how well a home holds its value is what the next buyer will pay for, and what costs and limits come along with it. That is what to compare before you buy. At First Key Pacific, when a buyer asks me which type is the better long-term choice in Playa Vista, I start with the ownership documents, not the floor plan. Here is how to think it through.

A California title company puts it plainly: condominium and planned development are types of interest in land, not styles of buildings. A townhouse is a style. The homes are joined by shared walls, usually with nobody living above or below you. Legally, that same townhouse can be a condominium, a lot in a planned development, or a single-family home.

California's Davis-Stirling Act lists condominium projects and planned developments as two different kinds of common interest development. Under Civil Code section 4125, a condominium is a separate interest in a space called a unit, joined with a shared, undivided interest in the rest of the property. The unit's boundaries come from a recorded map or condominium plan, and the space inside them can be filled with air. In a planned development, the separate interest is typically your own lot.

So a home marketed as a townhome may legally be a condominium. You find out from the recorded documents, not from the listing photos. Ask for the condominium plan or the tract map early, and ask the title officer how the home is held.

The ownership form shapes three things the next buyer will care about.

• What you actually own. With a lot in a planned development, you generally own the ground under your home. With a condominium, you generally own the space inside your unit, and the land is held in common with your neighbors. Some buyers put real weight on owning land. Others never think about it.
• Who can finance it. HUD has its own approval process for condominium projects, which matters to buyers using FHA loans. If your home is legally a condo, the building's approval status can widen or narrow the group of buyers who can make an offer when you sell. I walk through how that works in Can You Buy a Marina del Rey Condo With an FHA or VA Loan?
• Who insures and repairs what. The CC&Rs decide what the association covers and what falls on you. In some communities the association insures and maintains the building shell. In others, each owner carries more of it. That changes your monthly cost, and the next buyer will read the same documents you did.

When a Playa Vista home goes back on the market, buyers rarely ask whether it is legally a condominium. They ask what it is like to live there. These are the features worth weighing, because the next buyer will weigh them too:

• No one living directly above or below you.
• Private outdoor space, such as a patio, yard or roof deck, and whether it is truly yours or common area set aside for your use.
• An attached garage with direct entry, compared with a space in a shared garage. See whether a Playa Vista parking space is deeded or assigned.
• How many shared walls the home has, and where they are. An end unit and a middle unit in the same row are not the same home.
• Natural light, the layout, and the stairs. A three-level townhome suits some buyers and rules out others, including some people who are downsizing.
• The monthly cost of owning it, including HOA dues and any special tax on the county bill.

Most of these are about the specific home, not the category. A well-placed condo with a private patio and its own garage can be easier to resell than a townhome that backs onto a busy street and has a long climb of stairs. The reverse can be just as true. That is why I compare homes, not labels.

Value at resale is about more than price. It is also about what a buyer has to take on along with the home. In Playa Vista, that can include:

• HOA dues at more than one level. Many homes pay a master association and a neighborhood or building association. See what Playa Vista HOA dues and special assessments pay for.
• The health of the reserves. A building with thin reserves and big repairs ahead is harder to sell. Here is how to read a Playa Vista reserve study.
• A special tax on the property tax bill, which can differ from one home to the next. See why the special assessment differs between condos.
• A one-time fee at resale. See who pays the Playa Vista community enhancement fee.

Two homes with the same asking price can cost very different amounts to own each month. Buyers compare that monthly number, and so do their lenders. When you look at a townhome and a condo side by side, line up the full monthly cost, not just the price.

Read the association's documents before you decide, not after.

Here is the list I work from with buyers choosing between the two types:

1. The recorded condominium plan or tract map, so you know whether you are buying a unit or a lot.
2. The CC&Rs, with the sections on maintenance and insurance marked.
3. The current budget and reserve study for every association the home belongs to.
4. The most recent property tax bill.
5. The building's FHA approval status, if the home is legally a condo.
6. The rules on renting, in case your plans change. See whether you can rent out a Playa Vista home.
7. Recent sales of the same home type in the same part of Playa Vista.

That last item matters most for value. Compare townhomes with townhomes and condos with condos, then adjust for the floor, the garage and the outdoor space. Comparing across types is how buyers end up paying for a label instead of a home.

When you are choosing between a townhome and a condo in Playa Vista, my job is to make the trade-offs plain before you are under contract. I gather the recorded documents, read the CC&Rs with you, line up the monthly costs side by side, and show you how similar homes in the same neighborhood have resold. You make the call with the full picture in front of you.

If you are weighing two homes right now, or you already own one and want to know what will matter when you sell, let's talk it through. No pressure, just real answers. I'm here when you're ready.