Written By: Adrian Trott Sales Representative | The Kormendy Trott Team | Award Winning Milton Real Estate Agent
When thinking about purchasing a home there are many variables to consider; where do you want to live? How much should you spend? Is proximity to specific amenities important? What style of home or floorplan do you like? Do you have a preference of interior finishes (i.e. colours, hardwood vs. carpet, granite counters, etc.)? And should you buy new or resale?
Living in a growing town, with an abundance of new-build options, the question of new vs. resale is frequent. Being a Realtor who specializes in buying and selling resale homes I obviously have a biased opinion, however I'll explain my reasoning.
I've owned two homes so far and both were new-builds. Both were purchased before beginning my career in real estate and now that I've experienced both options I will likely never buy new again, with the possible exception of having a home custom built. Here is why:
Long Closings & Unexpected Delays
While this doesn't always bother people, there can be many delays when purchasing a new home that put things off for months upon months.
High Cost to Upgrade Offsets Lower Advertised Price
Builders often list homes with very attractive prices; it's not until later that you realize there are additional costs. As an example, most builders advertise the price of an entry level home, located on a basic lot, on a busy street and only they usually have a handful available. If you don't want to be on a main street, or there are no more available it's typical to spend a minimum of $5,000 to move to a quieter street. You may then consider adding upgrades like hardwood stairs ($7,000 - $15,000), upgraded light fixtures, upgraded kitchen cabinets, higher ceilings, larger baseboards, additional windows that open, different interior doors or door hardware, etc.
Living in the Mud
It seems small but living in a construction zone takes quite the toll! When my wife and I moved into our current home we couldn't open our windows for fresh air for over a year because of the amount of dust outside. We had to get our ducts cleaned regularly, always had dirty cars and it was noisy during the day, ]there was no grass and we had to walk quite far to find a patch for our dog to do his business!). I can't imagine if we had our daughter at the time, it would have been tough with nowhere to go outside.
When I purchased my most recent home, nearly $10,000 additional was spent on appliances, $3,000 on an air conditioner, $2,500 on a fence and $20,000 on landscaping. When buying resale most or all of these things are taken care of.
Purchasing a new home is a fun experience. I have lots of great memories of visiting the construction site, taking photos and sneaking into the home before it was locked. There are pros and cons to both sides, the cons are simply more heavily weighted in my case but they may not be in yours. Another thing to consider is that the old saying of "They don't make them like they used to" often applies to real estate. On one end, older homes are often built stronger and will last longer while newer homes are built to be more efficient but require maintenance sooner.
A builder MAY get it right one day but until then I'll stick to purchasing resale homes in mature neighbourhoods with bigger trees, grass, playgrounds and parks. Who knows, maybe one day you'll see a sales center with a big "KT" logo offering great homes with all of these issues taken care of :)
If you have decided to purchase a new home and want our advice on which upgrades to get through the builder and which are best left to be done after or have other questions about the process and how to plan, give us a call or shoot us a text to the numbers below. Be sure to check out our video below as well and subscribe to our YouTube Channel for more great tips.
If you're considering to move and would like help give us a shout any time.
Ariel Kormendy | Adrian Trott
Ariel: (647) 464-0957
Adrian: (416) 707-8401
Century 21 Miller Real Estate Ltd., Brokerage