Should You Buy a New or a Resale Home?
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You're ready to enter the exciting world of homeownership. Lesson one: There is no shortage of advice.

For all decisions you'll make, one of your first will be the choice between buying new or buying resale.

There are no right answers; it's a matter of what works best for you and/or your family. Take some of these factors into consideration when you're making your decision:

Location

  • New homes are usually built in subdivisions away from the city's core. The lots may be smaller than in older neighborhoods and the houses are closer together. There are few trees and little landscaping.
  • Resale homes are most often found in older neighborhoods, closer to the city's downtown. There are fixed local services, parks and schools. The lots may be larger but the homes may be smaller.

Amenities

  • New home are often built with the promises of future schools and parks. However, those projects may be on hold until the subdivision is complete. The neighborhoods may be closer to outlying large retail outlets.
  • Resale homes are part of an established neighborhood – schools and parks have been built. New development is unlikely.

Size

  • New homes may be larger than their older counterparts, answering today's family demands of more washrooms, storage and home offices. They are often designed in an open concept with one room flowing into the next.
  • Resale homes may have more interior walls, creating more but smaller rooms. There may be less of an open feeling to the space but the rooms may feature distinctive ceilings, archways or built-ins.

Technology

  • New homes, especially if you buy before construction, can be wired for the 21st century living: surround sound, wireless and home theatre for example.
  • Resale home may not be wired to handle all of your height-tech toys. The electrical system may need to be upgraded to meet your technology demands.

Efficiency

  • New homes must meet higher energy standards when it comes to insulation, windows, doors and heating. Those improvements can mean a big difference in your monthly operating expenses.
  • Resale home, unless they've been substantially upgraded, can cost more to run. Figure in the cost of replacing windows or furnaces to cut down on those expenses.

Maintenance

  • In Alberta, the New Home Warranty or other warranty program offers limited protection for homeowners for materials and workmanship. You can find out more through your builder.
  • Resale homes can mean increased maintenance, particularly if the previous owners didn't look after it. You may spend a lot of money to replace items such as roofs, foundations and heating systems.

Interiors

  • New homes are a blank canvas: you can customize to your hearts' – and your budget's content.
  • Resale homes either grab you with their décor or get you thinking about applying your design stamp. These homes may include window-coverings, light fixtures and appliances and even if they're not to your liking, it's a big money-saver in the early months.

Health and Safety

  • New homes use material to keep the space healthy. You won't find asbestos or lead in construction materials. Hard-wired smoke alarms are standard and new homes must pass inspection before occupancy.
  • Resale homes come with a history. Be proactive and find out all you can about the home's structural or operational issues. Have a home inspection before you make your final decision.

Future Development

  • A new neighborhood might be ready to live in, but that doesn't mean the end of construction. If there's a vacant field near your home or pristine view, check out the city zoning to find out how the land is zoned and if more development is planned.
  • Resale home aren't usually subject to the same kind of development seen in newer areas. However, nearby future road or other construction projects can affect the home's short-term value and access to your neighborhood.

Price

  • Generally, new homes are more expensive than resale ones. The rising cost of land, labor and materials contributes to the rising costs. Fees to bring municipal services to a new area are also factored into the price. There may also be costs associated with a homeowners' association, architectural controls or other mandatory fees.
  • Resale home are priced with a number of factors in mind: location, home condition, market trends and neighborhood desirability.

Schedules

  • New home construction is subject to a number of factors, such as the builder's schedule, the availability of building supplies and reliable supply of tradespeople. Keep in mind when you create a timeframe for your possession date – it could affect giving notice on a rental property, how long you may have to put your belongings in storage or if you have to find a temporary home until your new one is finished.
  • The schedule for possession of resale homes is set out in your buyer's contract. These are firm dates and legally binding. If you want to bring in a designer or contractor to look at the property before the possession date, you're REALTOR® can help set that up with the seller. Also keep in mind that the time between your move-out and move-in dates may require bridge financing from your lender until all the paperwork is complete.

The Decision to Buy Knowledge...

If knowledge is power, then a Realtor® is the most powerful professional you can have on your team when buying or selling real estate.

For ethical and professional assistance contact Bernard Lefebvre today to purchase your next property