Disclaimer: The contents of this article are industry best practices which were sourced from StreetEasy data and interviews with our Agent Advisory Board, unless noted otherwise. Any scripts provided are only meant to act as examples and are not required. Nothing in this presentation is intended to be legal advice. For specific questions about any duties or obligations arising out of a real estate transaction, check your local and state licensing laws and regulations, contact your broker, or an attorney.
Key takeaways:
- Co-op buyers purchase shares in a corporation that owns the building. Condo buyers own their units outright, and townhouse buyers own the entire structure.
- Co-ops dominate NYC’s for-sale inventory and are generally less expensive, but their strict board approval processes can make deals more challenging.
- Condos typically cost more than co-ops, but have a simpler approval process. Townhouses are scarce in inventory, so they tend to be highly competitive and expensive.
- Co-op owners pay maintenance fees each month, which include property taxes and building operation costs. The condo equivalent to maintenance fees are called common charges.
- Property types affect things like subletting and pied-à-terre rules, closing costs, timelines, and strategies agents should use when advising buyers and sellers.
As an agent, you get to help people fulfill their dream of owning a home — and in NYC, that typically means a co-op, condo, or townhouse. To help your clients achieve their goals, it’s wise to understand these three property types, their unique markets, and how their differences impact the buying and selling process. Here’s an overview.
What is a co-op?
When a buyer purchases a co-op, short for “cooperative,” they’re actually purchasing shares of a corporation that owns the building. Typically, the bigger the unit, the more shares the buyer will own.
What is a condo?
Unlike co-ops, a condo buyer purchases the unit outright and receives a deed of ownership. They also co-own the building’s amenities and shared spaces.
What is a townhouse?
A townhouse is a home that’s attached on one or both sides to another townhouse or building. Townhouses are typically one- or two-family homes, and the owner is responsible for the entire structure.
Market differences
Agents can stay up-to-date on the latest market trends using StreetEasy’s Data Dashboard, where you can filter metrics by property type (use “Single Family” for townhouses), borough, neighborhood, and more. Read our market reports, too, to get in-depth insights from our experts.
Here’s how the local markets can differ for co-ops, condos, and townhouses:
Co-op market
At any given time, the majority of homes for sale in New York City — around 75% — are co-ops. They’re typically less expensive than condos, but buying one requires getting approved by the co-op board, which can be a challenge. Therefore, co-ops can be more difficult to buy and sell.
Condo market
Condos tend to be more expensive than co-ops, but the approval process is less arduous. As a result, they’re often easier to buy and sell. There are fewer of them in NYC, but whenever a new development is built, it’s more likely to be a condo building.
Townhouse market
Townhouses are one of the most sought-after property types, but there are few of them on the market and not all neighborhoods have them. This makes them highly expensive and competitive. There are also several different types of townhouses found in NYC, and the market can vary for each.
Differences in the application process
Townhouses
Buying a townhouse is like buying a traditional house, in that there’s no application or approval process. Co-ops and condos, on the other hand, do require applications — though there are major differences between the two.
Co-op applications
Co-op buyers have to go through a strict application and approval process. To start, they must submit an application and all required documentation, such as financial information, reference letters, and employment verification. This may be referred to as a co-op board package.
Buyers then undergo an interview with the co-op board. A board may choose to reject a buyer for any number of reasons — from unsatisfactory financials to job history to simply “not the right fit.” They may even want to meet the buyer’s dog. The entire process can take months, depending on the board.
Condo applications
The application process for condos is far less demanding. Most buyers simply need to submit an application along with financial documents if they’re financing. Condo boards do have what’s called the “right of first refusal,” which means they can override a purchase and choose to buy the unit at the same price, but few exercise this right.
Maintenance fees vs. common charges
Each month, co-op owners pay maintenance fees, which go toward the building’s operating costs like insurance, staff salaries, trash removal, and more. It also covers property taxes and any underlying mortgage payments. Maintenance fees are collected in addition to the owner’s monthly mortgage payments.
Condo owners pay monthly fees called common charges, the condo equivalent to maintenance fees. Common charges cover building operating costs, but don’t include property taxes; instead, each condo owner pays the taxes for their own unit.
Subletting and pied-à-terre rules
Co-ops tend to have strict rules about whether owners can rent out their units or use them as a pied-à-terre (secondary residence). Some co-op boards ban subletting entirely, while others impose a fee or limits on how long a buyer can sublet the unit. Some co-ops allow pied-à-terres, but they may restrict owners from allowing others to live in their unit when they’re not there.
Condos, on the other hand, tend to be more relaxed on whether owners can sublet their unit or use it as a pied-à-terre. However, they typically don’t allow sublets shorter than six months.
As mentioned, some townhouses are multifamily homes, and the buyer is actually purchasing a home that contains more than one unit. In these cases, buyers have the option of renting out the extra unit(s), which doesn’t need approval — just make sure the buyer is prepared to function as a landlord for part of the home.
Closing costs
In terms of closing costs, co-op buyers generally pay around 4-6% of the purchase price. Condo and townhouse closing costs tend to be higher due to mortgage recording taxes and title insurance. For any sale over $1 million of any property type, buyers must also pay a mansion tax, and the rate increases with the purchase price.
What to expect when helping clients sell
- Selling a co-op can be more complicated, and usually takes longer due to the board approval process. They also may have strict open house rules, and some do not allow them.
- Selling a condo is typically less complicated. Bear in mind, however, that a deal can fall through if the condo association feels the accepted offer is too far below market value.
- Selling a townhouse is the least complicated of the three, since there are no boards to answer to. Fewer buyers can afford them, so you’ll want to make sure the client is financially prepared.
Whether you’re selling a co-op, condo, or townhouse, consider taking advantage of StreetEasy Signature℠, the premium tier of StreetEasy Agent Advantage℠, our program designed specifically for listing agents in NYC. Signature unlocks priority listing exposure on StreetEasy, premium presentations, and exclusive data to help you win more listings and sell faster. You’ll also have access to the enhanced Listing Insights tool — powered by StreetEasy’s expansive data and unmatched audience1 — where you can analyze performance drivers; track the local market, competition, and engagement; and generate customized seller-facing reports.
NYC’s fast-paced, ever-changing market can be tough to navigate, and your clients need your expertise to buy or sell successfully. By understanding the city’s property types and their differences, you’ll be better equipped to advise clients and position yourself as their go-to agent.
- Comscore Media Metrix®, All Platforms, Key Measures (Comscore Market), Total Unique Visitors, 3-month average, Oct-Dec 2025, New York, NY, U.S. Results indicate combined performance for StreetEasy and Zillow. ↩︎
