Selling a townhouse: a complete guide for Australian homeowners

I’ve sold a lot of townhouses. The ones that go smoothly have one thing in common: the seller knew exactly what they owned before the first buyer asked. The ones that stall usually stall on a question nobody prepared for. Who fixes the shared driveway? Is the courtyard on the title? What are the levies? This guide covers how to sell a townhouse in Australia, and how to answer those questions before they cost you money.

What makes selling a townhouse different from selling a house or apartment?

A townhouse sits between a house and an apartment. It often gives you a house’s space and independence with an apartment’s lower maintenance. That middle position is its biggest selling point. It also means buyers arrive with questions from both worlds.

A buyer looking at your townhouse might also be looking at a two-bedroom apartment down the road and a small house two suburbs out. They’re weighing space against price against upkeep. Your job is to show them where your property wins.

Not every townhouse is a strata property, and not every townhouse has body corporate fees. Some sit on their own freehold title with nothing shared but a fence. Others are part of a scheme with common gardens, a pool and a sinking fund. Two homes that look the same from the street can be legally very different.

Understand your townhouse’s title before selling

“Townhouse” describes the style of the building. It doesn’t tell you the legal ownership. Before you write a single line of advertising, find out what you own.

Is your townhouse on its own title?

Most townhouses fall into one of four arrangements. The names vary by state. Freehold is often called Torrens title, or green title in WA. Victoria uses “owners corporation” where other states say “body corporate” or “strata”.

A simplified guide. Your title search and registered plan are the only reliable answer for your property.

What about shared driveways and walls?

Shared driveways and walls cause more trouble in townhouse sales than anything else. Check how each of these works at your property:

• Shared driveways and vehicle access
• Easements and rights of way
• Boundary fencing
• Party walls between homes
• Shared roofs, where they exist
• Drainage and services running through neighbouring lots
• Common gardens and pathways
• Who maintains each of the above

Two townhouses can share a driveway while each sits on a separate title. The driveway might be split down the middle with a right of way over each half, or it might be common property. The registered plan and any easements decide who owns it and who pays to fix it.

Does your townhouse have body corporate fees?

It depends on your title. Many townhouses don’t belong to a body corporate at all. If yours does, buyers will want to know the levies, what they cover, what insurance the scheme holds and whether any big spending is coming.

Small schemes catch people out. Plenty of two-lot developments have an owners corporation that never meets and never collects a cent. It still exists in law. In Victoria, two-lot owners corporations are exempt from many of the rules that apply to larger ones, but they still have to prepare an owners corporation certificate when a lot is sold. That certificate goes into the Section 32.

Before you market your townhouse, confirm exactly what you own and which responsibilities pass to the buyer. A title search and a copy of the plan of subdivision cost very little. Your conveyancer can get both in a day or two.

How much is your townhouse worth?

Townhouse pricing starts with comparable sales, like any property. The hard part is that townhouses vary more than they look, so you need to compare the right things.

Start with comparable townhouses

Look for recent sales with a similar:

• Location
• Land size and internal floor area
• Number of bedrooms and bathrooms
• Garage and parking
• Private outdoor space
• Age and build quality
• Layout and number of levels
• Title and ownership structure
• Body corporate arrangements

What makes one townhouse worth more than another?

Three townhouses in the same street can sell for very different prices. Take these three.

Illustrative figures only. These are not real sales or a valuation.

Same bedroom count, $130,000 apart. A second car space, a courtyard you can use and your own street frontage all add value. Buyers weigh privacy, parking and outdoor space differently, so look at what similar buyers have paid for, not what you think the extras should be worth.

Should you compare your townhouse with houses or apartments?

Yes, if they compete for the same buyers. A townhouse often appeals to someone who wants more independence than an apartment offers but can’t afford a detached house in the same suburb. Watching what those houses and apartments sell for tells you where your price sits between them.

Don’t treat a house or apartment as a direct comparable just because it’s nearby, though. A two-bedroom apartment with a lift and no yard is a different product. For a step-by-step method, read how to price your property and how much is my house worth, or start with a free online valuation.

Who is likely to buy your townhouse?

Work out who your buyer is before you plan the photos or write the listing. Each type of buyer looks for something different.

Position your townhouse for the right buyer

A three-bedroom townhouse with a big courtyard and a school nearby is a family home. Lead with the courtyard and the bedrooms. A compact two-bedroom near shops and the train suits a professional couple. Lead with the location and the lock-and-leave lifestyle. A single-level townhouse with a step-free entry might suit downsizers.

Don’t assume every townhouse suits a downsizer, though. Most are two or three storeys. Stairs, narrow halls and an upstairs-only main bedroom rule out a lot of older buyers. Be honest about who the home works for and spend your marketing on them.

How to prepare your townhouse for sale

Focus your preparation on the things that make townhouse living attractive.

Make the most of your outdoor space

Outdoor space is usually the biggest advantage a townhouse has over an apartment, so treat the courtyard like a room. Clean the paving, tidy the garden and fix any broken fence palings. Put out a small table and chairs so buyers can see where they’d eat dinner. Add screening if a neighbour’s window overlooks you. Open the doors between the living area and the courtyard for photos and inspections, so the two spaces read as one. Even a small courtyard looks like real living space once it’s furnished.

Make compact spaces feel functional

• Remove oversized furniture
• Keep walkways clear
• Open blinds and replace dull globes to maximise light
• Declutter cupboards, because buyers will open them
• Keep the stairs clear
• Set up a spare bedroom as a study if that’s who your buyer is

Don’t ignore the exterior

The front entrance, garage door, driveway, fencing and any visible wear set the first impression. Fix what’s yours to fix. If the exterior or the driveway is common property, you may need approval from the owners corporation before you change anything. Ask first.

Address maintenance concerns before marketing

Townhouse buyers look hard at shared walls, water leaks, roof condition and drainage. Their building inspector will too. If you know about a problem, get advice on it before you list and disclose it where the law requires. A defect you’ve already priced in is a much smaller problem than one a buyer’s inspector finds a week before the cooling-off period ends.

For a full preparation plan, read preparing your home for sale and the cost of preparing a home for sale.

What legal documents do you need to sell a townhouse?

The documents depend on your state and on your title. A freehold townhouse needs much the same paperwork as a house. A townhouse in a strata or community scheme needs extra documents about the scheme.

These rules change, and the consequences of missing one can be serious. In some states, a buyer who didn’t get the right documents can walk away from the contract. For state detail, see our guides to selling in Victoria, NSW, Queensland, WA and SA.

What should you have ready?

Work through this list with your conveyancer. Not every item is legally required in every state, but every one of them is worth checking:

• A current title search
• The registered plan of subdivision
• Any easements and covenants
• The contract and vendor disclosure documents
• Owners corporation or body corporate documents, if they apply
• Current levies and any known special levies
• Any shared-access agreements
• Known building or maintenance issues you have to disclose

Also read legal mistakes to avoid when selling a house and legal fees for selling a house.

How to advertise a townhouse for sale

Your listing needs to show buyers why your townhouse beats the apartments and houses they’re also looking at.

What should your listing highlight?

• Bedrooms and bathrooms
• Private entrance and street frontage, if you have them
• Garage and parking
• Private outdoor space
• Layout and usable living area
• Privacy
• Storage
• Nearby schools, shops and transport
• Low-maintenance features
• Title and ownership benefits you’ve confirmed

How should you photograph a townhouse?

Lead with a strong exterior shot. Then show the open-plan living area, the courtyard, the kitchen, the bedrooms and the garage. Include an accurate floorplan. Townhouses are often spread over two or three levels, and a floorplan is the only way a buyer can see how the levels connect before they visit.

More on this in real estate advertising costs and our guide to realestate.com.au listing upgrades.

Managing townhouse inspections and buyer questions

Townhouse buyers ask more ownership questions than house buyers. Have the answers, and the documents behind them, ready for every inspection:

• Is the property on its own title?
• Are there body corporate fees, and how much?
• Who maintains the shared driveway?
• Who is responsible for fencing?
• Are there restrictions on renovations?
• What insurance will the owner need?
• Are pets allowed under the scheme rules?
• Are the courtyard and garage part of the title?
• Is any work on common property planned?

“I’ll find out” is a fine answer once. If you have to say it at every inspection, buyers start to wonder what else you don’t know.

How to negotiate the sale of a townhouse

Expect buyers to push on the things that make townhouses different:

• Body corporate fees
• Shared maintenance responsibilities
• Parking
• The size of the outdoor space
• Neighbours and shared walls
• Building condition
• Recent comparable townhouse sales
• Settlement timing

Some of these are real concerns. Some are just negotiating. A buyer who says “the levies are too high” might have a point if your scheme charges double the street average. Or they might be fishing for a discount on a perfectly normal fee. Answer with evidence: the levy history, the sinking fund balance, the comparable sales. For tactics, read home selling negotiation strategies.

How much does it cost to sell a townhouse?

Commission is usually the biggest cost, but it isn’t the only one. On an $850,000 townhouse, 2.5% commission is $21,250 plus GST, and advertising is often charged on top. What matters is what you keep after every cost is paid. For a detailed breakdown, see real estate advertising costs, or put your own numbers into the savings calculator.

Can you sell a townhouse without a real estate agent?

Yes. And selling without an agent doesn’t mean doing everything yourself. You have three broad options.

At Unreserved you choose how much help you want. Unreserved Lite is $900 and you run the campaign yourself, with your home listed on every major portal. With Unreserved Plus, a licensed campaign manager handles the marketing, every buyer enquiry, the follow-up and the negotiation. You open the door for inspections. Plus is a flat $6,900: $2,000 up front and $4,900 when the home sells. On that $850,000 townhouse, 2.5% commission would be $21,250 plus GST.

For a townhouse, being on-site for inspections is an advantage. You know which neighbour mows the shared strip, how the driveway works on bin day and what the levies cover. Buyers trust that more than a script. See how Unreserved works.

Townhouse selling checklist

• Confirm the townhouse’s title and ownership structure
• Review any body corporate or owners corporation obligations
• Check shared driveways, easements and maintenance responsibilities
• Research comparable townhouse sales
• Work out who your likely buyer is
• Prepare the courtyard, living areas and exterior
• Get the legal documents your state requires
• Set your pricing strategy
• Book photography, a floorplan and advertising
• Prepare answers to buyer questions
• Manage inspections and enquiries
• Negotiate offers
• Coordinate the contract and settlement

Questions people ask

How do you sell a townhouse in Australia?

Confirm your title and any body corporate obligations, research comparable sales, prepare the legal documents your state requires, set a price, then advertise, run inspections, negotiate and settle. You can do this with a traditional agent, a fixed-fee service or on your own.

Is selling a townhouse different from selling a house?

The process is the same, but the questions are different. Townhouse buyers want to know about title, shared walls, driveways, common property and levies. You need clear answers and the documents to back them up.

Are townhouses harder to sell than houses?

Not necessarily. Townhouses appeal to a wide range of buyers, from first-home buyers to downsizers. They can take longer to sell when the seller can’t explain the ownership arrangements or the levies are high for the area.

How much is my townhouse worth?

Compare recent sales of similar townhouses nearby, adjusting for land, floor area, parking, outdoor space, condition and title. An online valuation is a good starting point, and a formal valuation from a registered valuer gives you a firmer figure.

Do all townhouses have body corporate fees?

No. Townhouses on their own freehold title usually have no body corporate. Townhouses in a strata or community scheme usually pay levies, though some small two-lot schemes collect very little or nothing.

Can a townhouse have its own title?

Yes. Many townhouses sit on their own freehold title, also called Torrens title or, in WA, green title. A title search confirms which kind you have.

What is the difference between a strata townhouse and a freehold townhouse?

With a freehold townhouse you own the building and your own parcel of land. With a strata townhouse you own your lot, and you share ownership of common property with the other owners through the owners corporation, which sets rules and collects levies.

Can you sell a townhouse without a real estate agent?

Yes. You can sell it yourself, use an online listing service, or pay a fixed fee for managed support instead of a percentage commission. You’ll still need a conveyancer or solicitor for the legal work.

What documents do I need to sell a townhouse?

It depends on your state and your title. Expect a title search, the registered plan, the contract or vendor statement your state requires, and owners corporation or body corporate documents if the townhouse is part of a scheme. Your conveyancer will confirm the full list.

Who is responsible for maintaining shared walls and driveways?

It depends on the registered plan, any easements and any scheme rules. A shared driveway can be common property, or it can be split between two titles with rights of way. Check your title documents rather than assuming.

How much does it cost to sell a townhouse?

Costs include agent commission or a fixed fee, advertising, conveyancing, preparation, any body corporate document fees and mortgage discharge. Capital gains tax may also apply. At 2.5%, commission on an $850,000 townhouse is $21,250 plus GST.

Is it better to sell a townhouse vacant or tenanted?

Vacant usually suits owner-occupiers, because they can move in and you can style the home. Tenanted can suit investors who want rental income from day one. Check your lease and your state’s notice rules for tenants before you plan inspections.

Do townhouses appeal to first-home buyers?

Often, yes. A townhouse can give a first-home buyer more space and a private courtyard for less than a house in the same suburb. Low maintenance and good transport access add to the appeal.

What adds the most value to a townhouse before selling?

Usually the basics: a clean, usable courtyard, decluttered rooms, good light, fresh paint where it’s needed and a well-kept entrance. Clear documents about title and levies also protect your price, because uncertainty costs you at the negotiation stage.

Planning a sale? Read the process of selling a house, check how much your house is worth, or see how to price your property.