Why buy a Resale Home?
To many people, a new home seems like a better choice than a resale because everything is NEW! There is also a lot missing. New homes come bare, no windows coverings and very basic light fixtures. Basements are not finished and there is little to no landscaping, fences, and sometimes not even a paved driveway. I know, because I have bought new homes and endured the muddy landscapes, gravel drives, and dealing with the builder for new home warranty problems.
Today, many resale homes are in move-in condition with updated paint schemes and flooring. As far as an investment, a resale home will usually give you more value than a new home. Many owners have put thousands of dollars into home improvements such as landscaping, and a finished basement. The buyer of the resale home purchases these improvements at a fraction of what they cost the homeowner because the buyer gets the home at its real market value, which is based on comparable homes for sale or sold in the neighborhood. All those home improvements may come to the buyer at little or no cost.
In addition, resale homes tend to be in established neighbourhoods. The buyer has a better idea what the community will be like to live in and amenities such as parks, shopping and schools are usually well developed.
The old saying, “they don’t make them like they used to” can cut both ways: Many older homes have been built to last with sturdy materials and fine workmanship. Many of today's newer homes are built to sell based on the kitchen and bathrooms with the most basic construction everywhere else. Some people feel that buying a new home could save you money, but those days are largely gone. Builders price condos and homes at the future market value. This means a buyer of a new home will be paying what the builder amticipates the home will be worth when it is completed.
An additional cost that needs to be taken into consideration when purchasing a new home is the HST. The HST is applied to the price of a new home and can increase your cost thirteen percent over the list price. This does not apply to resale homes, as they are exempt from the tax.
Lastly, your choice of resale homes is virtually limitless. There is no restriction on location, style,
and date of closing is negotiable to suit your timeline.
Talk to your Realtor before signing for a new home purchase. A resale home may be a better choice for you and your family.