5 Facts of New Homes vs Resale homes

Friday May 03rd, 2019

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Are you researching the market and thinking about your new home?, but the questions that always pop in the head is, what are the facts to consider between a new and a resale home, well search no more, i will give 5 important facts that will have you pretty clear about it. Of course, there may be more facts for some , so don't feel discouraged to comment in the section below and give us your insights.

1. Location, Location, Location!:
Of course this is our first one in the list, below there is a quick breakdown to consider.

Resale homes:

  • More established neighbourhood.
  • Greater access to urban transit.
  •  Established infrastructure that gives you the ability to walk to neighbourhood stores, schools, community centres and places of worship

New build homes:

  • Offers a brand-new community complete with new roads
  • Neighbourhood amenities often not well-developed. Typically dependent on driving to all shops, community centres and other points of interest

2. Do you love the clean/slick lines of new homes or the character of resale homes?

Resales homes:

  • Resale homes often come oozing charm, cozy feeling and character. Whether its the tree-lined street or the unique facades that lend character to each house
  • Inside you can find architectural details, such as vaulted ceilings and built-in cabinetry, that lend a unique feeling to each home

New-build homes:

  • Usually offers open, updated living spaces with clean, modern and slick designs
  • If you buy and move-in to a new-build while the community is still being built you’ll need to get used to living in a construction zone, this is most of the times a determining fact for most buyers, specially if you come from an area where is well developed.

3. Flexibility with the moving-in date

Resale homes:

  • The advantage of a resale home is that every factor is part of the negotiation and this includes the possession, or move-in, date. For that reason, resale home purchases are often more convenient for people with specific move-in timelines

New-builld homes:

  • While builders will offer some flexibility it really boils down to whether or not the builder can meet their construction schedule. Don’t be surprised if you’re move-in date is delayed

4. What type of neighbours you prefer?

Resale homes:

  • Older neighbourhoods where resale homes are found often have a mixed bag of residents from young families, to renters to retirees.

New-build homes:

  • Brand-new communities will often attract a more homogenous buyer group—and developers know, market and build accordingly. You’ll find the developer has a specific buyer in mind—whether it’s urban professionals, starter homes or single family homes—they’ll build for this clientele and, more than likely, these will be the neighbours you’ll end up beside.

5. Other Costs associated with the purchase

Resale homes:

  • Over the years you will consistently spent more on maintenance with a resale home, therefore get a well known home inspector to avoid as much as possible future unplanned costs.
  • If you do plan on renovating you will need to take into consideration not just the remodel costs, but additional costs to bring your home up to current building codes. For instance, if you plan on adding a second floor, you may be required to rewire all the existing electrical wiring in the home
  • If you want to remodel, but keep your home’s current character, you’ll need to take into consideration that matching and replicating older building materials can be quite hard and quite expensive

New-build homes:

  • While new-builds are built to current building code standards you will have to pay extra for anything over and above the basics. One new-build buyer was shocked to find out that their french doors from the living room to the dining room were not only extra, but the sashes—the wood dividers that break up the big piece of glass in the centre of each door—were another additional cost.
  • You’ll need to pay GST/HST on the final sales price. On a $450,000 that’s another $58,500 (if you live in Ontario and have 13% HST. It could be less or more depending on the province you live in)But you won’t need to budget quite as much for annual maintenance or upkeep because the home is new. If there are defects you can usually get this repaired under the home’s warranty (just be sure to check the warranty guidelines and time limits)

There you have it , these are 5 quite important facts to have in mind when deciding between new homes and resales homes, of course there is a financial factor which is determinat in the  final decision, that will narrow down to the fact if you can afford this new investment.


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