With the rapid increase of new developments by builders, we’ve been receiving a lot of interest from clients who are looking to purchase a brand new home. Of course, we advise these clients to review their options and by that we mean, look at the resale market as well. We’re going to go through some pros and cons of buying both a brand new home from a builder like Mattamy and a resale home. With our target market in Brampton, this article as well will focus on Brampton, but the pros and cons can essentially be applied to any market. Please advise with professionals before making such investments, as this is just a simple rundown comparison of new vs. resale head to head.
The Pros of buying a new home:
- Customization, buying a brand new home is like having a blank canvas in which you can create the dream home you have in mind. You can pick the model, size, lot, finishes, and add as many upgrades the builder allows. Keep in mind; upgrades aren’t always easy on the wallet.
- The overall appearance of the home will be of modern times, with most builders using the newest technologies to preserve energy and protect the home from the elements.
- From the exterior to the interior, everything is new. You’re paying for a product that was built brand new for you according to your requirements. Always check with the builder that you’re getting exactly what you pay for.
- Savings on maintenance, you will not likely have to pay for plumbing repairs and heating issues.
Cons of buying from a builder:
- You’re buying a mock up of what the end product will look like. Builders hire professionals to portray a certain lifestyle when selling a project, sometimes the end product might not meet your vision or expectations.
- Dust and rocks! While living in your newly built home, you will experience what it’s like to not have grass and finished roads, for a while. Noise is also a con when you buy a new home because of the continuous improvements being made.
- Safety, It might not be safe for younger children to play outside. Especially since there will be homes that aren’t completed and with mechanical hardware left behind by workers. It’s technically a construction zone until the grass and roads are paved, which can take some time.
- Space, typically with new homes, you’ll get a smaller backyard and less space between you and your neighbour.
- New homes can sometimes cost much more than a resale home after closing costs and additional expenses are put into consideration.
Advantages of buying a resale home:
- Resale properties, if maintained well by their owners, can include all the bells and whistles with the initial purchase.
- Pick your neighbourhood; with everything already built and in place, you have to option to cruise around the area to see if it’s a fit for you and your family. You can view schools, plazas, parks, and meet people, to get a feel for the area and what you are investing in.
- The price isn’t set in stone, you have the ability to put in an offer for what you feel the property is worth, with new homes, there’s very little room for any price reductions.
- More space, older homes typically have more room between houses and a higher probability of having a bigger backyard.
- Convenience, buying a home in an area that’s already proven itself to be well accommodating to its residents might provide ease of access to public transit, malls, etc.
- Buying a home with a built basement, if rented out, can be quite lucrative.
- TLC, some homes might require you as the buyer to make some improvements to whichever parts of the home have been affected by wear and tear.
- You may find that a home that’s already built and in place does not meet all of your wants and needs. Walk in closets for example might not be available in older homes.
- Depending on the year the home was built and if it was maintained well, an older home might potentially suffer from lower energy efficiency.
- Things may not be up to date, if they weren’t maintained or replaced.
Other Considerations for Newly Built Houses
Other important considerations for newly built houses:
Is the new home being built in a desirable location? Do you know the surrounding zoning? Do you know what else will be built in the area that could affect growth rates and/or resale value? How close/far are the amenities? How is the commute to work? Is the new home being built in a desirable location? Do you know the surrounding zoning? Do you know what else will be built in the area that could affect growth rates and/or resale value? How close/far are the amenities? How is the commute to work?
Factors not touched on:
Depending on where you plan to buy a resale home, you want to consider factors that may affect you and the value of your home. A well knowledgeable real estate agent should be able to answer these questions for you. How’s the crime rate? Any major changes coming in the future? How far is the highway? Is it a good location? Will schools and other necessities be in close proximity? If you decide to sell, how will future values look? How long will it take for emergency responders to reach your home?
Is buying a new home cheaper than buying resale?
People often believe that buying a pre construction home from the builder is cheaper than buying a resale home. That may have been the case in the past but not any more. Most builders price homes based on future value, the value they think the home will be worth once its completed. Once completed and factoring in closing costs and all other associated costs, the pre construction home may cost you much more than you expected and much more than a similar resale home.
With a resale home, there’s not much you can do to change the exterior structure of the home, the interior, however, can be renovated to fit your needs. There are many resale homes that have the same or better features than newly constructed homes. You can find homes that have kitchens, washrooms, and bedrooms that have been completely redone to fit a contemporary design. Sometimes you may not be able to find everything you want in a resale home, so you need to ask yourself if you’re willing to do the work? And can the work be done? Always consult with a professional before doing any major repairs.
Buying a brand new home is a huge financial responsibility; you need to know that you will receive the best possible product for your hard earned money. Always check the builders previous projects and see if the quality and design are a fit for you. Cruise around the areas where they have built homes before. Check their background, if they have stable funding to complete the project, have they had issues with money in the past? You need to find a builder who you can trust and who has proven themselves to be their worth. Check online reviews if they’re available from people who have previous bought from the builder. Are they happy with the purchase? Did they receive what they were promised? How’s the home holding up after years of wear and tear?