We are often asked our opinion on whether it is better to purchase a resale home or newly built home. This is a personal preference but let me shed some light this question with this pros and cons list for both options. The homes used in this comparison are real properties that have recently been on the market for around $300,000 in the North area in the City of London. Homes used for this exercise are considered to be “like properties”.
RESALE HOME
This home is a 7 year old 2 storey which recently sold for $294,000. It has 3 bedrooms and exteriorly finished with a combination of brick and siding, it has a double driveway and an attached double garage.
PROS AND CONS OVER NEW BUILD
- Fully finished basement
- HST included in purchase price
- 6 appliances included in purchase price
- Established part of sub-divison {no building immediately around property}
- Mature landscaping {many perennials, trees and shrubs}
- Window coverings, blinds and hardware included in purchase price
- Fence and deck completed
- Approximately $6,000 negotiated off asking price
- 30 days possession
- Roof shingles are likely to reach the end of their life in a few years time
- New home warranty is expired at the 7 year mark
NEWLY BUILT HOME
This home has similar features to the resale home as listed above and is “to be built”. The price of this home is $292,000. The biggest visual difference will be seen on the outside of the home as there will be no fence, no landscaping and no deck out from the patio doors.
PROS & CONS OVER RESALE HOME
- Clean, untouched, no damage and never occupied
- New home warranty program will exist for 7 years
- Option to choose colours and finishes of the home to suit the buyers personal taste
- Peace of mind that everything is brand new
- Typically appliances are not included and can cost new home owners thousands of dollars
- HST could be in addition to which actually makes this homes price $329,960
- Window coverings, blinds and hardware are not typically included
- Little or no negotiation on price as they are usually firm
- Possible ongoing building directly around the property for months or years to come
- 90 closing in most cases
