The Pros and Cons of Buying a New Home Versus Resale

When it comes to buying a new home, it all comes down to two options; new or resale. Resale homes and new construction homes each have their advantages and disadvantages - sometimes making it hard to decide between the two. However, when you look at your lifestyle and values, you’ll probably see that one option is better than the other.

For this reason, we've listed a few pros and cons below to help you decide which type of home is right for you. 

Resale Pros

Character and Charm 

Resale homes can have a certain kind of charm. You can often find older homes made from high-quality materials that use architectural details reminiscent of your childhood home. They’re also often in established neighbourhoods with mature trees and solid reputations.

Many people are attracted to resale homes in certain neighbourhoods because they’re convenient or have good schools nearby. In most cases, resale homes are less expensive than newly-built homes.

Quick Turn-Around Time 

Perhaps the biggest advantage of purchasing a resale home is the fast move-in date. In most cases, you’ll be able to close on the home and get your keys in around two months. This makes the moving process a bit less stressful, especially if you’re trying to time the move with the end of your apartment lease.

Resale Cons

Like a Box of Chocolates...

When you buy your resale home, you think you know what you’re getting. After all, you're able to tour the home and hire an inspector to make sure that everything’s in good working order. However, there are always surprises in resale homes. New carpeting may be covering up a subfloor issue, or the furnace or water heater might need replacing in a year or two down the road. 

...You Never Know What You're Going to Get

What's more, quality may not hold up if the previous owner tried to save money by doing their own repairs. The cost of repairing these defects can be difficult to handle, especially after you've made such a large investment. For this reason, you may have to wait until you're able to rebuild your savings a little prior to tackling any repairs.

You're More Likely to Settle 

Also, when you purchase a resale home, you might feel like you’re settling in some ways. The home may be in the right location, but it doesn’t have space for the home office you really wanted. It might be a perfect size, but lacks a layout that works well for entertaining. 

Of course, it’s often possible to renovate your home, but that takes time and costs money. You also have to ask yourself whether you’ll actually get around to making those changes, if they'll deliver a return on your investment and if you’ll feel dissatisfied if you're unable to make the adjustments you want. 

New Home Pros

Make it Completely Your Own From Day 1 

With a brand new home, everything's designed just the way you want it. You’re able to pick everything from the floor plan to the doorknobs, allowing you to truly get the home of your dreams. New homes reduce your energy bills and are more environmentally friendly. You’ll love this in the winter when you’re not dealing with drafty windows. 

Convenient Locations Full of New Amenities 

Since they’re often located in new communities, new homes tend to offer a lot more convenience than resales. For instance, the community might have extensive walking trails, large picnic areas for social gatherings, and easy access to major highways. They also tend to be fairly close to amenities like new schools, shopping, restaurants, and fitness centres. You’re able to get everything you want in one location.

New Home Cons

Sometimes They Cost More 

While new homes are very comparable in price to resales, they can cost a little more if you opt for all of the upgrades you've been dreaming of (even though the extra costs will be blended into your mortgage payments). For this reason, you'll want to have a good idea of how much you can afford -  especially if you're budgeting for your first home. But remember, a new home will come with new home warranty and the features you would have had to add to a resale are already there! Builders can also work with you to create a home in your price range - a new home is more affordable than you think. 

Waiting For Your Dream Home

If you opt to build a new home, the typical timeframe for a new home build is about ten months from start to finish (barring any unforeseen circumstances). For this reason, you may be tempted to opt for a resale because you know the home is 100 per cent move-in ready. But you can have the best of both worlds!

Consider talking to a sales agent about quick possession homes. The builder will already have a variety of models, floor plans, features, styles and price ranges available. This means you won't have to wait and you can move in quickly! 

Buying a new home is a big investment and we understand it's important to make a choice that’s right for you. If you’ve always dreamed of buying a home in your old neighbourhood or you love the challenge of a fixer-upper, a resale home might be the best choice. If you have specific needs and don’t want to settle, a new home build is what you want. Don’t be afraid to explore all of your options.

Originally posted April 20, 2017, updated October 29, 2018