Buying New Versus Resale

Advantages Of A New Home

With a brand new home, you can start from the very beginning and decorate your new home exactly as you want.

If you prefer a new home, be prepared for the on-going construction you will find all around you. Chances are that your lawn will not be in, your driveway will be gravel and your street will turn into a sea of mud whenever it rains or snows. If things are going to go wrong with a house, they will appear in the first one to two years after construction. As the house settles, you may find cracks appearing in the walls or in the basement.

New homes will have more modern conveniences, better insulation and be more energy efficient. There are additional expenses associated with a new home that you will not usually find in an older home. You may have to spend additional money for appliances, curtains, drapes, landscaping, air conditioning, etc. Before you sign the contract for a new home, be sure that it is covered by a comprehensive warranty.

Advantages Of A Resale Home

The major advantage of a resale home is that you are moving into an established neighbourhood. Your lawn is green, your shrubs are growing, your driveway is paved and your trees are well enough established to give your street a feeling of permanence.
In terms of an investment, a resale home often will give you more for your money than a brand new home. Many owners put thousands of dollars into home improvements rang- ing from small items, such as landscaping, to major projects, such as a finished basement.
Although these improvements will make the home more attractive to potential buyers, they may not increase the market value of the home. A $30,000 swimming pool or a $25,000 finished basement or even $5,000 worth of shrubs and landscaping may make a home very attractive, but they will not necessarily increase the market value of a home. The buyer gets the home at its real market value, which is based on comparable homes for sale or sold in the neighbourhood. All those expensive extras may come to the buyer at little or no cost.