A retiree I consulted recently brought in a spreadsheet. It was a table comparing the maintenance costs of their single-family home over the past five years alongside the HOA fees of a townhome community they were interested in. The question they were curious about was this: which option costs less when looking at the numbers alone?

First, let's look at property taxes. Federal Way is part of King County. The effective property tax rate in King County is about 0.82 percent, with a median home value of $885,200 and a median property tax of around $7,292 per year. This property tax must be paid regardless of whether you own a single-family home, a townhome, or a condo. So how do maintenance costs and HOA fees differ?

Maintenance costs for single-family homes are notoriously unpredictable. You can't know when the roof will leak or when the boiler will fail, and when something does break, it can cost thousands of dollars all at once. In contrast, HOA fees for townhomes or condos are billed at a fixed amount each month. This is because the community manages the roof, exterior walls, and landscaping collectively. However, it's important to note that HOA fees can increase annually, and if the community's reserve fund is low, they may impose a special assessment that requires a large one-time payment.

What about heating and cooling costs? The average electricity rate in Washington is 10.13 cents per kilowatt-hour, and residential natural gas costs $17.62 per 1,000 cubic feet. Federal Way, located south of Seattle, tends to be cool in the summer but has frequent rain and cloudy days in the winter, leading to longer heating periods. A larger single-family home has more space that needs heating, while townhomes or condos, which share walls, tend to have less heat loss, making heating costs relatively lower.

Is there a way to reduce property taxes? Washington has a property tax exemption program for residents who are 65 or older or have disabilities. The exemption rate varies based on income brackets, and the exact income criteria differ by county and are adjusted every few years. You can check the application process and specific criteria through the King County Assessor's Office.

When comparing HOA fees, it's important to look not only at the monthly billed amount but also at the community's reserve fund. Communities with low reserves may require special assessments from residents when major repairs, like roof replacements or plumbing work, are needed, which undermines the advantage of having a fixed monthly HOA fee. It's advisable to ask if there have been any special assessments in recent years and what the reserve fund balance is.

Home insurance is another item to consider. For single-family homes, the owner must insure everything from the roof to yard features, but for townhomes or condos, the HOA typically insures the building's exterior and common structures, which often reduces the scope of personal insurance to just the interior. However, it's important to keep in mind that the reduced insurance premium is often already included in the HOA fees.

Even if you are not yet 65, if retirement is approaching, it can be helpful to start recording maintenance expenses every few years. Having actual spending data can help you compare numbers rather than just relying on gut feelings when deciding whether to move later. If you are interested in a particular townhome community, asking current residents about their satisfaction can provide valuable insights that you won't find in the property listing alone.

Ultimately, the numbers on the spreadsheet alone won't provide a clear answer. Single-family home maintenance costs can be highly variable, while HOA fees are predictable but can continue to rise, each carrying its own risks. You need to consider whether you have the capacity to manage the property yourself and whether you can handle large expenses. Property tax rates, HOA practices, and utility costs can change annually, so be sure to check the latest information. This article is not investment or legal advice, and it's recommended to consult with a real estate professional and a tax advisor before making any actual agreements.