Buying a New vs. Resale Home

One of the challenges experienced when house hunting is the new versus resale debate. There are so many factors to consider before making the big decision. The following lists the advantages and disadvantages of buying a new home and buying a resale home. At the end of the day, it's the home that you find suits your needs the best. So think carefully and choose wisely!

Buying a New Home

Buying a New Home

New Home

Advantage

  • Personalized choices: upgrades, choose certain items
  • Can change lot and floor plan (within the builders spectrum)
  • Potential for lower maintenance costs and fewer repairs as everything will be new
  • Latest electrical and energy efficiency standards
  • Homebuilder's warranty

Disadvantage

  • Often on smaller lots
  • Closing costs are typically higher
  • Little room to negotiate price
  • Moving date can drag on (if builder is not complete properties)
  • Dynamics of the neighbourhood are not yet established
  • Taxes (Provincial and Federal Tax) paid by the first owner on the final price
  • Unknown home taxes, utilities and other fees
  • Don't know who you neighbours are, little activity on the properties until the builder is gone

Resale

Resale

 

Advantage

  • Moving into an established neighbourhood
  • Know of the proximity of schools and amenities
  • Known move-in time
  • More room for negotiation in price
  • Many resales have "extras" such as appliances, pools, decks, and fenced yards
  • Can meet your neighbours in advance
  • Can spend time on the street checking out traffic, people, etc.
  • Aware of fees for taxes, utilities and other amenities

Disadvantage

  • No warranty
  • Cannot change lot or floor plan
  • Potentially lower energy efficiency
  • Maintenance and renovation costs needed earlier in the housing cycle
  • May not find a home that meets all your wants and needs
  • Features in the home may not be up to date