When looking to purchase a home, some will only consider new construction while others may prefer an existing home.
Pricing and lifestyle issues (do you have or want kids? pets? What home and community amenities will you require?) will be major factors affecting your decisions, The new construction or resale option each present some distinct advantages and each has unique issues. Some considerations include:
- Resale homes tend to be in more established neighbourhoods. The fences and yards are complete which means that you can move in without having to do worry about completing these large and often expensive projects.
- A resale home will often offer significantly larger lots than are found in today's new home communities and of course mature landscaping and trees.
- You know exactly what the neighborhood looks like and how your neighbors take care of their homes. You can even knock on people's doors to find out what those that live in the neighborhood think of it.
- Sweat Equity: Many homeowners enjoy home remodeling projects and have the ability to add significant value to the home by updating and remodeling it.
- The individuality and uniqueness of an older neighborhood. Some people feel that in today's newer neighborhoods all the homes look the same.
- In a new subdivision, you can make choices according to your budget and taste. You may choose various options from builders’ plans - home size, layout, style and front elevation, lot size and location, street location.
- With a builder, you may have to wait many months for your new home to be complete; timing will need to be a large consideration if your existing home has to be sold or rental notice needs to be given, and/or your furniture and household items need to be stored. Delays in the approval or construction process can affect the timing of completion.
- Ongoing construction in new subdivisions can mean unfinished roads and dusty surroundings until everything is completed.
- In a new home, of course everything is new! You will have your choice of finishes in your newly built house – choices may include flooring, cupboards and counter tops, and sometimes fixtures and paint colours as well. This can be an exciting way to personalize your home; it is often possible to negotiate or purchase upgrades as well.
- With a resale home, may not be well insulated, the windows and doors may fit poorly and have air leaks, and the appliances may not be as efficient as today's newer appliances.
- If you are buying in a new development, find out about the number of phases planned and when they are scheduled to be completed. It is often better to buy later in the development, this gives the developer time to make improvements brought to their attention by owners. Also, if you need to sell before the development is complete, you will have strong competition from those homes that are brand new. Given the option, a buyer is likely to buy the new home as opposed to your "used" home.
- A potential downfall of new construction is the way in which the builder handles the warranty work. Some builders will go out of their way to make you, the homeowner, happy while others seem to be of the opinion that if they ignore the homeowners complaints long enough the homeowner will eventually tired of complaining and give up.
- While with resale homes your money is due in full at closing, many builders have a payment schedule which allows you to pay your deposit in stages, as the construction progresses. While the balance will still be due on closing, the wait for your new home to be completed could allow you to save a little more money during the process.
- Taxes and closing costs may differ between new and resale homes; often, for instance, sales tax is payable on new homes, while it is usually included in a resale purchase. Check with your attorney (you MUST use an attorney for your purchase) for specifics.
