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August 21st, 2017

Buying A New Home vs. Resale – What’s Your Best Option

New Home vs. Resale?

Whether you are considering buying a resale home or purchasing a new home with a builder, knowing what to expect during the home buying process and learning what to look for in a home will help you avoid disappointment by setting clear expectations when it comes to your wants vs. your needs.

Once you decide to start the process of purchasing a home, here are three things to consider:
1. Finances:
It is important to clearly evaluate your finances to establish a comfortable down payment. From here, acquiring a mortgage pre-qualification is a good starting point to help you narrow down the type of home you can afford.

2. Location, Size, Lifestyle & Features:
Do you want to live within the hustle and bustle of the downtown core or in a quiet, family-friendly suburban neighborhood? Do you prefer a townhouse, detached home or condo? Are you considering growing your family in the coming years? If so, you may want to consider the future and look into a neighborhood with good schools, recreational facilities and other young families. Is it important that amenities are within walking distance or do you have access to a vehicle?
These are just some questions to consider when evaluating your current needs and long-term goals.

3. Forms of Ownership:
Freehold Homes and Condominiums each have their benefits. With a freehold, you own the property and the land in which it sits, meaning you are solely responsible for maintaining the interior and exterior of your home; With a condominium, you may own only the interior of your home and are required to pay monthly condo fees to maintain and repair the common property elements. If you decide on a condominium, ensure you do your research about what is and is not included in your condo fees before making a final decision.

Pros & Cons of Buying New vs. Buying Resale

Buying a New, Pre-Construction Home
Pros:
– Purchasing a new home gives you the best return on investment
– You are able to choose the floorplan that best suits your lifestyle
– You are able to customize your finishes to suit your taste prior to moving in
– You are able to upgrade specific features to suit your needs and add these additional costs to your mortgage
– You buy directly from the builder at pre-construction prices
– The home will be move-in ready and you do not have to worry about long and costly renovations to finish a home to your standards
– Your new home will be covered by Tarion Warranty for 7 years after purchase
– Everyone is new to the neighbourhood in a new development community – this encourages more interaction that could help you and your family develop lasting relationships with your neighbors

Cons
– You may not be able to choose the exact neighborhood since it is subjective to the area that the communities are being developed
– Closing dates are typically (but not always) further out than resale homes

Buying a Resale Home
Pros:
– Since the houses are prebuilt, you will have an opportunity to walk through the home ahead of purchase
– Typically, the closing date is agreed upon between the buyer and seller and will be much sooner than that of a pre-construction home

Cons:
– You may need to hire a local real estate agent who is familiar with your area to help you find the right home in the ideal neighborhood
– Since homes are not customized to suit your needs, some homes may not be move-in ready and may be in need of repairs or updates
– You will need to hire a certified home inspector to thoroughly inspect your home and point out any possible issues that may not be obvious to you at first glance
– If you find a home that has been renovated, sellers are not legally obligated to disclose who performed the renovation (ie. Was the work done by a certified contractor? Is it up to the building code?)

At Branthaven Homes, we have 45 years of experience building stunning homes and helping new home owners Live the LifeTM. If buying pre-construction is right for you, please take a moment to check out our upcoming communities.