Priced Out of the Market? A Condo or Townhome Could Be Your Way In
Today’s home prices have a lot of buyers, especially first-time buyers, wondering if there’s even anything out there that’s in their budget. But owning a home may be more within reach than you think. Sometimes, it just means considering a different type of home.
Condos and townhomes can be a great way to buy without stretching every last dollar. And right now, two things make them worth a serious look.
There Are More Condos and Townhomes To Choose From
Maybe you feel like there’s just nothing out there for you, and you’ve exhausted all your options. But have you considered condos or townhomes? A lot of buyers start by looking for a single-family, detached home without even realizing what that search omits from their pool of choices.
According to HousingWire Data, nationally there were 233,030 condos and townhomes for sale this June. That’s more than any June in at least the past decade, and more than double the number available back in 2022 (see graph below):
That means there are more options out there in this segment of the market, and that’s especially good news for first-time buyers. These types of homes can be a great way to break into the market for less.
Just remember, that’s the national number. What’s available will depend on where you’re looking. But generally speaking, more options means less competition, more time to decide, and more room to negotiate.
What’s Happening with Ann Arbor Condos
Good news if you’re shopping for a condo in Ann Arbor: the market is opening up in your favor. Through the end of July, new listings climbed to 594 in 2026 from 563 last year, giving you more choices to explore. At the same time, pending sales eased to 343 (down from 389) and closed sales dipped to 345 (from 359), while homes now sit for 49 days on average versus just 29 a year ago. With median prices sliding slightly to $335,000 from $340,000, this shift toward more supply and a calmer pace means you have room to compare options, negotiate with confidence, and lean on expert guidance to find the right fit.
They Also Tend To Cost Less Than Single-Family Homes
Price is the other big draw. According to the National Association of Realtors (NAR), the median condo price was $380,000 in June. In contrast, the median single-family home price was $446,400 (see graph below):
That’s a difference of more than $66,000.
A big reason why? Condos are usually smaller than single-family homes. And smaller homes can come with smaller price tags.
And if you don’t need all that extra space, that lower entry price could be exactly what gets you through the door.
What’s Happening with Condos vs. Homes in Ann Arbor
Here’s where the numbers get exciting for anyone eyeing an entry into the Ann Arbor market: through July 2026, the median home sold for $586,500 while the median condo came in at $335,000, a gap of over $250,000. That difference carries into averages too, with homes at $678,466 versus $448,299 for condos. Even a year ago, Ann Arbor condos began experiencing more price reductions. For you, this means a condo can be a smart, more accessible way to plant roots in a neighborhood you love, without stretching your budget to single-family territory. With expert Realtor guidance and clear market insights on your side, you can turn that price advantage into a vibrant, low-maintenance lifestyle right where you want to be.
Condo or Townhome? How They’re Different.
For buyers who feel priced out of the market, a condo or townhome could be a way in. But there are some things to know. Before you start checking out homes, it’s good to understand how these two compare to each other, and to a single-family home.
- With a single-family detached home, you own the house and the land it sits on, and you don’t share any walls with neighbors. That means the most space and privacy. But it also usually comes with a higher tag, and all the maintenance is on you.
- With a townhome, typically you own the building you live in and the lot it sits on. They’re usually multi-level, so you get more space, and you share two walls at most. You’ll also have more say over how your home looks and how repairs get done, but more of that upkeep falls on you.
- With a condo, you own just the inside of your unit and may have access to community features like a pool or gym. The building and shared space belong to everyone who lives there, which means you have less maintenance responsibilities. But you’ll also likely have more neighbors around you, less control over building decisions, and higher HOA fees since the HOA handles the exterior and common areas.
Bottom Line
Ready to make your move in Ann Arbor? A condo or townhome could be your path to owning a home without blowing your budget. The Bouma Group, Realtors knows this market inside and out, from the walkable downtown condos to the tucked-away neighborhoods you’ll love calling home. Our team pairs deep local expertise with personalized guidance, listening to your budget, your must-have features, and the lifestyle you’re after, then matching you with properties that truly fit. Whether you’re drawn to low-maintenance condo living or a place with a little more room to grow, we’ll walk you through financing options, honest market insights, and every step in between so you feel confident from first tour to closing day.
Let’s find the right spot for you together, reach out today at 734-761-3060 or info@bouma.com. Let’s turn your Ann Arbor plans into keys in your hand.
What Are Contingencies in a Condo Purchase?
Quick answer: Contingencies are conditions written into a Real Estate purchase agreement that must be met before the sale can close. They protect both buyers and sellers by creating defined exit points if specific circumstances, like a failed inspection or financing issue, arise during the transaction.
Buying a condo in Ann Arbor is an exciting step. But between signing the offer and getting the keys, there’s a lot that can happen. That’s where contingencies come in.
If you’ve been browsing listings on Condo Hotline or talking with a Realtor, you’ve probably heard the term thrown around. But what does it actually mean, and why does it matter so much when purchasing a condo specifically? This guide breaks it all down: what contingencies are, why they exist, which types apply to condo purchases, and how they protect everyone at the table.
What Does “Contingency” Mean in Real Estate?
A contingency is a clause in a purchase agreement that makes the sale conditional on certain events or criteria being met. Think of it as a built-in safety net. If the condition isn’t satisfied within the agreed timeframe, the buyer typically has the right to walk away from the deal. Often, their earnest money deposit will be returned.
Contingencies aren’t a sign of distrust. They’re standard practice. They simply acknowledge that real estate transactions are complex, and things don’t always go as expected.
Why Are Contingencies Necessary When Buying an Ann Arbor Condo?
Purchasing a condo differs from buying a single-family home in important ways. You’re not just buying the unit itself. You’re also buying into a homeowners association (HOA), shared amenities, and a collectively managed building or complex. That adds layers of due diligence that make contingencies especially valuable.
For example, a condo association might have underfunded reserves, pending special assessments, or restrictions that affect your ability to finance the purchase. Without contingencies in place, you could find yourself legally obligated to complete a purchase that no longer makes financial sense.
Contingencies give you time to uncover these issues, and an exit strategy if you find them.
What Are the Most Common Types of Contingencies in a Condo Transaction?
Financing Contingency
Also called a mortgage contingency. This clause gives you a set period, typically 21 to 30 business days, to secure financing for the purchase. If your loan falls through, the financing contingency allows you to cancel the contract without forfeiting your earnest money.
This is particularly relevant in condo transactions because lenders evaluate not just your financial profile, but also the condo association itself. Factors like the percentage of owner-occupied units, the association’s financial health, and pending litigation can all affect loan approval.
Inspection Contingency
A home inspection contingency gives you the right to have the property professionally inspected within a defined window, usually 5-7 business days after the offer is accepted. If the inspection reveals significant issues, you can negotiate repairs, request a price reduction, or back out of the deal entirely.
For condos, inspections typically cover the interior of the unit, including HVAC systems, plumbing, electrical, and appliances. Common areas and building structure are often the association’s responsibility, but that doesn’t mean you shouldn’t ask questions about their condition.
Condo Document Review Contingency
This one is unique to condo purchases and is among the most important. Michigan law entitles buyers to receive the condo association’s governing documents. This includes bylaws, rules and regulations, the master deed, and the most recent budget and meeting minutes. You then have a defined period, per the contract, to review them.
During this review, you’re looking for red flags such as:
- High delinquency rates among unit owners
- Inadequate reserve funds
- Pending or recent special assessments
- Restrictions on rentals, pets, or renovations
- Ongoing litigation involving the association
If you discover something that changes your decision, this contingency gives you a legal path to exit the contract.
Appraisal Contingency
If you’re financing your purchase, your lender will require an appraisal to confirm the property’s market value. An appraisal contingency protects you if the home appraises for less than the agreed purchase price. Without it, you’d be required to make up the difference in cash or risk losing your earnest money by walking away.
In a competitive Ann Arbor market, some buyers choose to waive this contingency to make their offer more attractive. That’s a decision best made with guidance from an experienced local Realtor who understands current market conditions.
Sale of Current Home Contingency
If you’re purchasing while simultaneously selling your current home, a home sale contingency allows you to back out if your existing property doesn’t sell within a specified timeframe. Sellers are generally less favorable to this type of contingency, especially in a hot market, so it’s important to discuss your options with your agent before including it.
Attorney Approval Contingency
The attorney review contingency gives you a set window of time, usually a few days after signing, to have a Real Estate Attorney review the contract. If your attorney spots something they don’t like, they can request changes or even cancel the deal. You’d walk away with your earnest money intact. It’s a smart layer of protection, especially for a big purchase. Not every buyer uses one, but it can give you real peace of mind. Your Realtor can help you decide if it’s the right move for your situation.
How Do Contingencies Protect the Buyer?
Contingencies are primarily designed with the buyer’s interests in mind. They create structured off-ramps that allow you to exit a transaction, without financial penalty, if something unexpected comes up. Whether that’s a lender declining your mortgage application, an inspector uncovering water damage, or the condo documents revealing a looming $15,000 special assessment, contingencies ensure you’re never trapped.
They also create negotiating leverage. If an inspection reveals needed repairs, for instance, you can use the inspection contingency to re-open discussions rather than simply accepting the property as-is.
How Do Contingencies Protect the Seller?
Sellers benefit from contingencies too, perhaps less obviously, but meaningfully. Clear contingency terms define exactly what conditions must be met and by when. This reduces ambiguity and the risk of a buyer backing out late in the process for reasons not outlined in the contract.
Sellers can also negotiate the terms of contingencies, including timeframes and what outcomes are acceptable, to minimize disruption to their sale timeline. A well-structured offer with defined contingencies is often more reliable than one with vague or open-ended conditions.
What Happens When a Contingency Isn’t Met?
So, what happens if a contingency isn’t met in time? Don’t worry, you’ve got options. You can ask for an extension, or you can walk away from the contract. If you choose to leave, you’ll usually get your full earnest money deposit back. Just be sure to follow the steps laid out in your contract.
But here’s the important part. If you try to back out for a reason your contingencies don’t cover, things get tricky. You could lose your earnest money. In some cases, you might even face legal trouble. That’s exactly why having a great Realtor in your corner matters so much. A knowledgeable Realtor makes sure your contingencies are written clearly and timed just right. It’s one more way we help you buy with confidence and peace of mind.
Start Your Ann Arbor Condo Search with Confidence
Understanding contingencies is one of the most important steps you can take before making an offer. They give you room to breathe, do your due diligence, and make a fully informed decision, without putting your earnest money or financial future at risk.
At The Bouma Group, Realtors, we’ve been the Ann Arbor condo experts for 41 years. We know the local market, the condo associations, and exactly how to structure an offer that protects your interests. Whether you’re buying your first condo or your fifth, we’re here to guide you through the entire process.
Ready to get started? Contact The Bouma Group today:
📞 734-761-3060
✉️ info@condohotline.com
🌐 condohotline.com
Featured Ann Arbor Condos for Sale in December 2025
Featured Condos for Sale in Ann Arbor
Ann Arbor offers a unique blend of vibrant city life and peaceful neighborhood charm, making it a fantastic place to call home. If you’re looking for the convenience of condo living without sacrificing style or location, you’ve come to the right place. Here are five exceptional condos currently available, each offering its own distinct character and benefits.
Find Your Perfect Ann Arbor Condo
From exclusive retreats just minutes from downtown to stylish studios in the heart of the action, there’s a perfect match for every lifestyle. Here are some of our featured listings that you won’t want to miss.
285 Mulholland Ave: A Private Treetop Retreat
Price: $599,000
Imagine living in a serene, park-like setting while being just minutes from the energy of downtown Ann Arbor. This stunning unit at the exclusive Treehouse Condominiums makes it possible. As one of only four residences in this boutique community, it offers a rare combination of privacy and accessibility. This 2-bedroom, 2.5-bath home feels both spacious and inviting.
As you step inside, you’ll love the beautiful maple hardwood floors and the natural light that pours through large windows in every room. The living room is perfect for cozy evenings, centered around a gorgeous wood-burning fireplace with hand-picked Turkish tile. From there, you can step out onto a large covered balcony to enjoy the tranquil scenery. The bright kitchen features cork flooring and lovely views of the backyard. Upstairs, the primary bedroom’s soaring cathedral ceilings create an airy escape, complete with a spa-like ensuite bath. A second primary suite, a two-car garage, and low HOA fees complete this incredible package.
531 Liberty Pointe Dr: Contemporary and Convenient
Price: $325,000
Welcome to this fabulous 2-story townhouse in the sought-after Liberty Pointe community. This home has been meticulously maintained and boasts numerous recent updates, including a brand-new AC (2025), a new furnace (2019), and a new water heater (2019), giving you peace of mind for years to come. With its private entrance and attached garage, this condo feels like a single-family home.
The light-filled living room features a cozy fireplace and is perfect for relaxing or entertaining. The well-designed kitchen flows into a dining area that opens onto a private deck, ideal for enjoying meals outdoors while overlooking the central greenspace. The upstairs primary suite is a true retreat, offering a walk-in closet and an ensuite bath with a dual-sink vanity and spa tub. A partially finished basement adds even more living space, with a room perfect for a home office or gym, plus a third full bath. Located right on the AATA bus line, it’s an easy commute to the University of Michigan and downtown.
922 W Summerfield Glen Circle: Stylish First-Floor Living
Price: $298,500
This stunning first-floor ranch-style condo in the popular Summerfield Glen community offers a perfect blend of modern style and everyday function. The open floor plan creates a seamless flow, ideal for contemporary living. The kitchen is a true highlight, featuring dark granite countertops, a glass tile backsplash, and sleek graphite stainless steel appliances.
Warm hardwood floors extend throughout the main living areas and bedrooms. The inviting living room includes an electric fireplace and opens to a screened-in porch, where you can enjoy peaceful courtyard views. The spacious primary suite features double closets and an attached bath. This home also includes the convenience of an in-unit washer and dryer, a new water heater, and a detached one-car garage. With its location on Ann Arbor’s west side, you’ll have easy access to I-94, downtown, shopping, and dining.
555 E William St. 17B: Modern Downtown Studio
Price: $214,000
Are you looking for a vibrant downtown lifestyle? This bright, south-facing studio condo is located just one block from the University of Michigan campus in Tower Plaza. It’s been beautifully updated with modern flooring and a stylish white kitchen featuring granite counters. The building itself offers fantastic amenities, including soundproof walls for peaceful living, on-site laundry, and a dedicated storage area.
With attentive on-site maintenance, you can enjoy a worry-free lifestyle. This unit is a perfect home base for students, professionals, or anyone wanting a chic and affordable retreat in the heart of Ann Arbor. It represents an incredible value for downtown living.
555 E William St. 3K: A Value-Packed City Pad
Price: $210,000
Also located in the secure and quiet building at Tower Plaza, this south-facing studio offers many of the same fantastic features as unit 17B. It boasts stylish updates, including modern flooring and a white kitchen with granite countertops, creating a bright and welcoming space. The spacious bathroom vanity adds a touch of practical luxury.
This condo provides an amazing opportunity to live just steps from campus and all the excitement of downtown Ann Arbor. It’s an ideal choice for those seeking a convenient and low-maintenance lifestyle without compromising on style or location. If you’re looking for a smart investment or the perfect urban retreat, this studio is an excellent choice.
Your Ann Arbor Condo Awaits
Each of these properties offers a unique opportunity to enjoy the best of Ann Arbor living. Whether you’re drawn to a quiet, park-like setting or the buzz of downtown, we are here to help you find the perfect fit.
Are you ready to see one of these incredible condos in person? Don’t wait! Contact The Bouma Group, Realtors today at 734-761-3060 or email us at info@bouma.com to schedule a showing or to learn more about other available properties. See more Ann Arbor Condo complexes here and find your perfect community!