Looking to buy a new home? Whether you’re a first time home buyer or are ready to move out of your current abode, there are a number of things to consider. What neighbourhood is best for you and your family? Will your new home check off all your must-haves? And perhaps one of the most burning questions: should you buy pre-construction or resale? There are benefits and disadvantages to both, so let’s take a look at which one is best for you!
Pros of Resale
You Know What You’re Getting
There are a number of benefits of buying a resale home or condo. First of all- what you see is what you get. You can schedule visits with your Realtor®, check out the property, and see if the home meets your wants and needs. Your agent will have insider knowledge about the property, comparables, and other keydetails to help you make an informed decision. For example, what appliances and fixtures are included, their age and condition, the cost of utilities, and the property taxes. You’ll also know exactly what your neighborhood looks and feels like.
Reliable Move-In Date
When you’re making an offer on a resale property, you get to negotiate the move in date. Once the deal is accepted and finalized, the date can’t be moved by the seller arbitrarily – it must be a written request and accepted by all parties. This is a major benefit over pre-construction, where the move-in date can be pushed back by years, leaving you to scramble to find other living accommodations.
Cons of Resale
With resale properties, you don’t get the customization you would with preconstruction. You may have to do some renovations if the home is older and has outdated appliances and finishes. You’re also buying a home and property that has already gained value, so if you’re in a “hot” market, it may be more expensive than pre-construction (a lot of variables at play to determine this, but a Realtor® can help you make that assessment). While it’s true that you may be paying for improvements and upgrades already made, this can save you the hassle of living through a renovation, and conversely, any new upgrades you personally make will add to your future resale value…so you don’t really lose.
Pros of Pre-Construction
When you purchase pre-construction, you have a lot of options to customize your home. From the colour of the kitchen cabinets to the flooring, you’ll spend time in a design studio choosing your finishes and final details to make sure the finish product is just how you want it.
Buying pre-construction also means you’re locking in today’s pricing, with the assumption that the property will be worth more when it’s finished. If you end up waiting a few years to move in, it’s a good bet that you’ll have made money on the property, having paid what it was worth years ago.
Cons of Pre-Construction
Unfortunately, the cons tend to override the pros when it comes to pre-construction. First and foremost, when you go the route of pre-construction, it’s always a waiting game. Delays are more common than not, and you can end up waiting three to five years, and in some cases even longer, to move into your home. Move-in dates can be pushed back by years, ruining your plans to move into your new home in a timely matter. As well, you won’t really know how the neighbourhood will fair or who your neighbour will be, until you move in.
It also takes a lot of trust to buy a pre-construction home, as you won’t see the final product until years later. You’ll have access to artist renderings of the building, floor plans, and samples of condo finishes, but if you’re someone who needs to physically see a space and get that special home feeling before making your decision, it can be a tough pill to swallow.
When it comes down to it, resale in many ways is the safer choice, but it can’t be denied there is an allure of owning a home that’s new and designed by you. While there will be those who find out the hard way the realities of pre-construction and end up waiting what feels like forever to move into their new home, some have the convenience of time and circumstance to ride that out. Be it pre-con or resale, the key is always to find the right home!
If you’re in the market for a new home, get in touch with us at AskNina and we can help you get the process started!