New Homes vs. Resale Homes Part One
of Buying A New House
What are some of the advantages of buying a new house? One of the primary advantages of buying a new home is the ability to decorate your home from the beginning and to do it in a way that is exactly how you want. You can go through the home colour selection process, which includes paint and your carpets. You can also make the tile and cabinetry selection for the kitchen and bathrooms. Often, new homes will have more modern conveniences, better insulation and can be more energy efficient. Also, the home carries up to a seven year warranty for certain defects under Tarion.
Disadvantages of Buying A New Home
Unfortunately, with a new home purchase you should be prepared for the on-going construction you will find around you. Chances are that your grass and 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. As the house settles, you may find cracks appearing in the walls of the basement, especially near the windows. Make sure you get these cracks filled right away. You should not finish your basement for a couple of years at least, in case cracks and leaks develop.
There are additional expenses associated with new homes that you will not typically find in a resale home. For example, you may have to spend additional money for appliances, curtains, drapes, central vacuum, humidifiers, decks, fencing, electric garage door openers, finishing the basement, walkways, outdoor lighting, indoor light fixtures, tree, shrubs, gardens and landscaping, swimming pool, air conditioning, etc. Closing costs are typically higher for new homes. The purchaser will pay for such additional costs as the New Home Warranty Program, tree planting, utility hook ups and paving the driveway.
When buying a resale home, you can find out a lot more about the property and the neighbourhood before you buy than when you buy a new home. Land to support new-home developments is usually located on the outskirts of town. Potential buyers should ask the developer about future access to public transit, entertainment activities, shopping centers, churches, and schools. Local zoning ordinances should also be reviewed.
Typically, due to the continual addition of features, rising labour and material costs, new homes cost more than similar resale homes. Do you have to pay significant impact or lot levies or taxes and fees that are imposed on the builder? Are the taxes on the new home much higher than a comparable resale home? Will you be in the new home until the area is built out so you will not be competing with the builders should you need to sell the home? Is the home going to be high priced compared to other homes built (or going to be built) in the area?
Stay tuned until next week for Part Two of New Homes vs. Resale!