Buying new vs resale
Should you buy a new home that’s freshly built and never been lived in before? Or should you buy an older home that’s had a few inhabitants before you? Both options have their pros and cons. Here’s a rundown of some of the biggest for each.
There’s no doubt that buying a new home straight from the developer has lots of advantages. They’re newer, so they’ll likely have state of the art fixtures, flooring and appliances. As well, newly built homes are often under warranty, so if you find any problems in the first few months of living there, the builder is responsible for correcting them. However, these advantages come at a cost – literally. You’ll likely have to pay a premium for those brand new fixtures and appliances and new homes are less negotiable in price; builders are generally reluctant to discount the price because they don’t want to affect future sales of other homes in the development. However, many developers will offer to throw in upgrades – such as upgraded flooring, appliances or fencing – as incentives for you to purchase. They may also offer to cover your closing costs – an obvious advantage.
Another trade-off that comes with buying a brand new house is size. With reducing costs at the front of mind of many companies, newer homes and the lots they’re on are often smaller than their older counterparts. As well, concern about costs may mean that newer homes are lacking the quality that exists in older homes, built back when materials were less expensive. Alternately, older homes may have been high quality for when they were built, but not up to today’s standards – meaning you’ll have to fork out money for upgrades and repairs.
New homes may be an easier option, since they come with all the new amenities and are under warranty, but they’re not for everyone. If you’re looking to find a bargain home or want a home that’s already in an established neighbourhood and has an older character, a new home likely won’t give you what you want..