2 minute read.
Are you in the market for a new home? Does the idea of buying a new construction home sound ideal? With construction costs on the rise and builders taking more control of the offer, it may not be the best decision. There are so many factors that affect new home construction that is not an issue when you purchase a resale home. Here are some of the benefits of purchasing a resale home rather than a new home.
Flexible Move-in Dates
If you want to move into your newly purchased home right away, buying resale is the right choice for you. Most home sellers are very flexible with the closing date of their home. There can be exceptions or extenuating circumstances, but generally, you can negotiate a closing date that works for both parties. The closing date of a pre-construction home can be a year to 18 months away. Moreover, many new build projects take longer than expected. Builders have been known to push the closing date multiple times, leaving purchasers to make alternative living arrangements.
Location, Location, Location
Typically, resale homes are in established neighbourhoods that provide buyers with easy access to things like transit, shopping, and entertainment. Infrastructure is normally already established as well. Schools in these neighbourhoods have ratings that you can count on, and places of worship have well-established congregations if that is something of interest. Most landscaping and fencing is already completed. This means no added expenses are passed onto you, the buyer, for these items. Lastly, most resale neighbourhoods are filled with history and charm. There are many municipal initiatives throughout Canada to revamp and update the older communities even further with trails, splash pads and more.
No Mess, No Fuss.
More often than not, when you purchase a new construction home, you are getting just that: new and construction. Roadways and sidewalks might not be completed when you take possession which means dirt and debris will be everywhere, including inside your home. As mentioned, resale homes are already built-in established neighbourhoods that have everything done, and therefore, the only thing you need to worry about tracking into the home is what you step in.
Mortgage and Taxes
Obtaining a mortgage on a resale home, even if you are upsizing, is pretty straightforward. The opposite is true of new construction home. The mortgage for a new construction home is different. It is called a construction mortgage and is based on the contract you have with the developer or builder. The contractual obligations of their purchase agreement can greatly affect the details of your mortgage or loan. New home purchases are also subject to HST upon closing. So, you can see, the process is a little more complicated than purchasing a resale home.
The benefits of purchasing a resale home are evident. If you are a fan of traditional architecture or looking for a home oozing with character, you are definitely going to want to spend your time looking at resale homes. It would be my pleasure to sit down with you and discuss your home buying plan. There are so many established neighbourhoods out there for you to explore!