Buying New Home Vs. Buying Resale Home

VS.

Last weekend I had a lovely couple walk into an Open House that I was holding. After showing them around we got to talking and one of the questions that came up was whether they should buy a new home from a builder or a resale home. I explained to them there are advantages and disadvantages to whichever path they decide to go down. At the end of the day they had to decide what kind of a home they wanted and what was important to them.

Advantages of a New Construction Home:
•Personalized choices. One of the main advantages of a brand new home is that you can decorate it the way you want. You can pick your own paint, flooring (hardwood, carpet or laminate)and type of appliances.
• Up-to-date with the latest codes/standards. Your new home will be built to the latest building codes, electrical and energy-efficiency standards which is worth the peace of mind in the long run .
•Maintenance costs. Maintenance costs are much lower for the first few years because everything is new and many items are covered by the builder's warranty.



Disadvantages of a New Construction Home:
• Ongoing Construction. One of the downsides of moving into a new development is that they're usually still under construction after you've moved in and the continued construction can still be a bit of a headache for new homeowners.
•Extra Costs. You may have to pay extra for lawn care, fencing, pave your driveway once you have moved in. You may also have to spend additional money for appliances, curtains, drapes, central vacuum, humidifiers, decks, electric garage door openers, finishing the basement, walkways, outdoor lighting, indoor light fixtures, trees, shrubs, gardens and landscaping, children's play sets, swimming pool, air conditioning, etc. You want to make sure what is included in the purchase price.
•Taxes. with the purchase of new homes the buyer has to pay HST, and additional costs such as the New Home Warranty Program, tree planting costs, utility connection fees and paving of the driveway.
•Blueprint. Many builders do not have all the model homes, hence the purchaser does not get to see the exact layout of the home and even then the final layout of your new house may not be the way they same as the one promised by the blueprint.

Advantages of a Resale Home:
•Established Neighbourhood. There is no ongoing construction in the neighbourhood and the area is well established with schools, malls, grocery stores. The lawn is green, shrubs are growing, driveway is paved and trees planted. Often, most extras are already present, such as appliances, curtains, drapes, central vacuum, humidifiers, decks, fencing, electric garage door openers, finishing the basement, walkways, outdoor lighting, indoor light fixtures, trees, shrubs, gardens and landscaping, children's play sets, swimming pool, air conditioning, etc. You also get to know who your neighbour is in a resale home which you can’t in a new home.
•Taxes. HST is already included in the purchase price, hence there is no extra tax during the purchase of the home.
•Size. A resale home will often offer significantly larger lots.
•Negotiability. There is room for price negotiating with the seller as compared to the builder’s almost firm price list.


Disadvantages of a Resale Home:
•Possible redecorating and renovations. Some homes need attention and need to be redecorated, renovated and require major repairs such as replacing the roof, windows, doors, air conditioning, furnace, fireplace, appliances etc.


As you can see there are many advantages and disadvantages for both new homes and resale homes. Whether you choose to buy a new or a resale home, take your time and consider all the facts. And remember - any home you purchase will be new to you.

If you have any questions or concerns please feel free to contact me.

Regards,
Zeenia Kola
Sales Representative with Re/Max Realty Specialists Inc., Brokerage
Email: zeenia@zeeniakola.com
Ph: 905-828-3434
Add: 2691 Credit Valley Rd, #101, Mississauga, L5M 7A1
Website: http://www.zeeniakola.com/
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