November 24, 2015 | Buyers

New Build Vs Resale Home

New Build Vs Resale Home  – What’s at stake?

For those looking to purchase their first home or make a move there is a dilemma – new build vs resale home?  Prices for building your own home are now lower than ever before with many factors playing into this including economic trends and developers’ luck.  While building your own house may seem like a tantalizing offer, it is a decision that requires good sense and some consideration of the basic needs you have for your home.  Check the list below to find out what will work best for you.

Improvements

Whether you buy a new build or a resale home, you will likely have some additional costs on your hands. Your new build’s sticker price only includes the basic construction and everything from ceiling lamps to modifying doors, to choosing a different flooring will add to your costs. The fancier you get, the more it will cost you.

Resale homes also have their costs. You’ll probably want to make some changes or renovations to your home, so remember to factor these in when looking at buying.  You may have to do more expensive repairs such as replacing the roof or furnace. The upside here is that the price is flexible when purchasing a resale home – so you may have some wiggle room by bidding. You can also negotiation things such as the appliances, window coverings, outdoor furniture, indoor furniture, lawn mower etc. If the seller is downsizing they may even give you these items for free.

Location

You’ll have a lot more options if you choose to purchase a resale home.  Houses are available in pretty much any type of neighbourhood, from suburbs to right downtown, there are houses to choose from. However, building a new home usually means you’ll be in a suburban area where there may not be as many amenities. This is important to consider especially because someday you’ll likely want to sell your home.  Those in better neighbourhoods with great schools have a better chance at selling and for a better price.

Tax

Taxes are another factor that may affect your choice. On new build you will have to pay GST/HST on the sale price. On $450,000 that could be another $58,500.

Style

Sometimes it comes down to taste.  Some are in love with old architecture and the feeling of older homes, whereas others enjoy modern style and crisp lines.  Older architecture can be more difficult to recreate  – and more expensive, so if this is your style, you may as well go with a resale home.

When You Can Move

There’s a definite downside to purchasing a newly built home here.  Builders will often give you an estimated date in the future, and then push it back, maybe even several times.  If you’re in a hurry to move, this will likely cause you some frustration.   Resale homes on the other hand are ready right away unless you want to do major remodeling.

The Final Product

Buying a resale home allows you to physically see the house before you commit to purchasing it. For the most part you know what you are getting. Where as with a new build you often are only given a blueprint and then trusting that the final product will meet your expectation. If you are going to buy new make sure you research your builder thoroughly! With a resale house you will be able to see who your neighbors are before hand.

GoWylde Newsletter