There’s been a lot of new home construction, condos and subdivisions popping up in and around Collingwood, Wasaga Beach, The Blue Mountains, Meaford and Grey County, which is driving a lot of people to pop the question: “Should we buy a newly-built home or a resale home?”. There are definitely pros and cons to each, so let’s look at some of the key issues involved before committing to such an important home-buying decision.
While the list price of a new build may be similar to a resale home, there are areas where other costs can really differ. With a resale home, they all vary in terms of their wear and tear. A home built 10 years ago may need more work than one built 90 years ago depending on the previous owners and how it was maintained. When buying a resale home, it’s always a good idea to get the home inspected so that you know exactly what you’re up against and how much you may need to budget for repairs, upgrades and maintenance. Finally, don’t forget that with a resale home, your Realtor® can work to negotiate the price, meaning there’s a chance you may pay less than expected. Years ago, most new homes were priced lower than comparable resale homes, but in the past while, more builders have been pricing homes at current market costs, or the anticipated market price at the time of completion. This has narrowed the price gap significantly. Further, with new homes, buyers must pay the HST, meaning that on a $500,000 home, that tax would be $65,000. New builds also have additional costs for any upgrades you wish to include, so, depending on your needs and wants, those expenses could start piling up quickly. The good news is that all new homes come with a warranty, which is not available with the purchase of a resale home.
The community & infrastructure
If you’re all about a charming, established community with big trees, parks, walking-distance schools and other amenities, then you may be more interested in a resale home. The infrastructure is more established in older neighbourhoods; you may even still find door-to-door mail delivery, lots of sidewalks, and better transit routes. However, with older communities, you may also find some areas in various stages of disrepair or neglect. A brand-new subdivision on the other hand takes a bit of time to grow its infrastructure. With new builds, you may have to wait for grass, fences, driveways, parks and other nearby amenities to be available. Interestingly, most builders target their buyers according to various demographics, so you may find that your new home is among people in similar life stages as yourself, such as having young children, retired, or single.
Seeing vs. believing
The appeal of a new, custom-built home is very exciting. It’s wonderful to be able to choose your counter tops, flooring, cabinets and much more. You can also select from a wide range of upgrades such as 9-foot ceilings, built-in ovens, landscaping and so on. The only downside to this is that it’s sometimes a challenge to visualize what your home will look like in the end, as most of the designs are computer-generated blueprints or model homes that are not quite like yours. If you’re the type of ‘hands on’ person who needs to see a home, walk around and get a feel for it, then a resale home is likely your best choice – no imagination required.
One of the last things to consider when deciding if you should buy a new home or resale home is whether you are flexible on your move-in date. Some people have a set date in mind, such as before the kids start school in the fall, or when relocating to a new job. New builds can be behind schedule, so having secure housing while you wait is essential. You also don’t want to be in the situation where you have to wait until you’ve moved in to the new home to put the old one on the market; carrying two mortgages for any length of time would be a challenge. With a resale home, move-in dates are negotiated at the time of signing the purchase agreement, so there’s no uncertainty about when you can take possession of the home.
As you can see, there are many considerations to mull over when buying any home – new or ‘previously loved’! Your experienced Realtor® at Clairwood Real Estate can help you find the right home in the perfect neighbourhood and can answer all of your real estate questions. Connect with us today at 705-445-7085 and let’s get you in to that dream home! Our goal is to make your experience stress-free and enjoyable.