New Build or Not to Build?

Picture yourself in this scenario:

You are a buyer looking at resale homes, with a $350,000 budget. You begin looking at homes in your price range and are realizing that in Saskatoon, $350,000 does not buy you the home you set out to buy. You become disheartened at the amount of work that needs to be done in order to get your dream home. You begin to think that perhaps you should be looking into new builds. This would allow you to get the spaciousness & upgrades you want. Seems like reasonable logic, yes? You start looking at new homes in the $350,000 range and you begin to see an issue.

It seems perfect – it is in your price range, and you are getting all the features you wanted! But there are a few items you failed to overlook:

Money is required to complete the yard, including fencing and landscaping. That’s just where it starts – you will also need to pave the driveway, and may have to finish developing the basement. When all is said and done, you are looking at another $50,000 minimum. If you have the ability to do the work yourself, you may save some money, but you will have to invest a lot of time. Carrying out projects yourself can prolong the length of the problem, as well as increasing the stress level in your home!

This is not to say that new builds are not the choice to go with – they are just not the right choice for everyone. The great features of a new build are that you can get customize and get exactly what you want in a home, including upgrades. When looking at a new home, the thing that is often forgotten is that there are still plenty of upgrades to be made to the home and property, many of which resale homes already have. When budgeting, you must include the finishing costs – so now you are looking at $400,000, with the additional $50,000 being out of pocket as it is normally not something that can be rolled into the mortgage.

If you are looking to buy or sell a home in Saskatoon and area, I can help you to understand what type of home is right for you, and make buying or selling your home as enjoyable as possible.

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