"That house is green."
Translation:Tuo talo on vihreä.
Yes, house is "talo" and home is "koti". As a native speaker I find "koti" being a very dear and personal thing and you use it only if you really speak about your home or somebody else's home. "Koti" is the one and only place you live in. Talo and koti are very different things. I have never heard anyone saying "that "koti" is green", but you could maybe say "your "koti" is green". And still - I wouldn't even say that to my friend. I would use "your "talo" is green". Maybe if they had a very green interior decoration I would use "koti". I hope this made it a bit more clear to you. :)