Buying a home is likely the biggest decision of your life. It can be a wild ride that is silultaneously scary and exciting. One more decision you may face is whether or not you should buy new or pre-owned.
The conversation in your house may go something like this:
“I want the beautiful charm and character of an older home, with the large baseboards and details in the woodwork.”
“I want a new home, under warranty, built exactly the way I envision my home space functioning and feeling.”
When reviewing the pros and cons of buying new vs. a pre-owned home, make sure you’re looking at your own personal situations first. Assess if you’re looking at buying your forever home, your first home, a future investment property, downsizing and so on. The circumstances in your life determine the decision factors of which home is right for you.
So what are some of the advantages and the disadvantages of new vs. pre-owned?
1. Home Warranties are certainly a big giant PRO for the new build. Once you have your keys and your home closes escrow, that beautiful new home warranty kicks in. The thought of moving into a home where nearly everything is covered for 1 to up to 20 years for major structural items, roofing systems, etc. is certainly very appealing.
However, a new home warranty does not typically cover wear and tear and improper use of the components of the home. This can present itself as a sore thumb if your builder claims misuse of homeowner but you’re convinced it’s in the default of the builder. This back and forth for the warranty replacements can be a CON.
2. Pre-owned homes are often in beautiful, desirable and matured neighbourhoods which is a definite PRO. The trees have matured and are full to add privacy, the neighbourhood is established with amenities, schools, bus routes, walking or running routes and have a built-in reputation that can be easily researched.
However, the CONS are there too. There may be old systems in place such as sewage and drainage in older areas that can cause undue emergencies and damage to your home such as flooding. The tree roots may become overgrown and cause damage to the pipes and foundations. You find out that being nice and close to shopping and schools also may mean increased traffic in the area.
3. New homes are typically built with the latest energy saving materials, the newest technologies and follows the current building codes which are all PRO new home. You can also build exactly what you want because it’s all a clean slate limited only by your budgets and your imagination.
A certain CON to this is that you may just be moving into an area that will have the constant sounds of construction. New homes are being built, new infrastructure, new amenities, new landscaping, etc. So if you don’t necessarily like those “cat-calls” of construction workers on your morning jog or backhoes in your backyard, this may not be the most desirable route for you to take.
Whatever your choice, make it based on your preferences and your circumstances. Review your must haves and your situation. There are alternatives to both which may just be that middle of the road solution you’re looking for. Just do your research, talk to your realtor and mortgage brokers. Be an informed buyer and enjoy your new home – whether it be built for you or built by you.