Making the decision to purchase a new construction home versus resale homes can be a difficult task. There are many benefits to new construction houses, but there are also benefits of resale homes. Here are some of the main differences between new construction and resale homes to help you make your decision.
When it comes to new construction homes, there are three major types. There are fully custom homes, new builds, and quick possessions; Lincolnberg Master Builders deals with two. Fully custom homes provide the most choices and the ability to design every aspect of your home — everything between your foundation and your roof is yours to decide. However, fully custom homes are also the most expensive kind of new construction home, and they are also the longest building process. Lincolnberg offers customizable features, rather than custom homes.
New builds allow for some customizations, but for the most part items like floorplan, exteriors, and the base of the home come from the home style. You get to choose your flooring, materials for cupboards and countertops, and other interior finishes, but the base is largely decided by the home design you choose. Although you get less customization options than a fully customized home, you will save a significant amount of time and money by choosing the more standardized process. The final kind of new construction home is the quick possession home. This home doesn’t allow you any customization choices because the entire home is already finished and move-in ready. You may not get to design the home, but a quick possession allows you to move into a brand-new home instantly, and you also save some money that way.
Resale homes are homes that have already been lived in and are being sold as-is. There are no customization options, but resale homes tend to come in at a much lower price point that new builds or quick possessions.
Here is a list of advantages and disadvantages to both new homes and resale homes!
New Construction Homes
Advantages of New Construction Homes
1. More customization options
If you’re going for a home that fits your vision, new construction is the way to go. If you want a ton of customization, starting with your own design is the far more economical option rather than renovating. Being able to choose what your house looks like, and what the floor plan is (in the case of a new build where you are given a selection of appropriate home designs) can help your new home feel more like your home instantly.
2. The home version of a new car smell
There’s something to be said about knowing that you and your family are the only people to live in your house. There’s some peace of mind to knowing that there were no weird renovations done, the floors aren’t scratched from decades of moving furniture, no animals have left messes on the floors, and there are no ghosts.
3. Newer home means more environmentally friendly
Older houses weren’t built to have the same energy efficiency. New electrical, HVAC, and plumbing technologies mean you can use less power and get more from it. When it comes to new homes, there’s no waiting 20 minutes for the water to warm up as you pour a bath or having your light bulbs burn out every month because of electrical surges. New technology in windows, thermostats, lighting, and plumbing all lead to your home having a lighter impact on the environment and a lighter impact on your wallet.
4. The community is newer
Being in a new community with your new construction home means that the roads and sidewalks will be newer (less potholes for a while), and the schools and amenities will be newer too. This can be a great advantage.
5. Less maintenance costs
Another advantage of new construction homes is the lower maintenance requirements. Items like furnace repairs, room replacements, resealing your concrete patio, etc. etc. are years away, and other maintenance items like lightbulb replacement and making sure your doors are properly sealed are much less expensive than in old homes.
Disadvantages of New Construction Homes
1. The cost
The main disadvantage of new construction homes is that they will always cost more than resale homes. Just like buying anything else brand new is more expensive, your home is going to cost you more if you want all the advantages of a brand new home.
2. Longer time frame to move in
Other than quick possessions, new construction homes take more time to be able to move it. From purchasing the home to getting it built, it can take many months before you’re able to officially move in to your newly built home.
3. Less community variety
Although new streets and new amenities are a major plus, one of the disadvantages of new communities is that there isn’t as much visual variety in the streetscapes. Houses may differ, but modern styles all tend to lean towards a similar style. There’s also less community variety in that new communities attract similar demographics, so you’re likely going to have neighbours that are all quite similar to yourself.
Advantages of Resale (Existing) Homes
1. The cost
Resale homes can save you a decent amount of money in the home buying process. They are exempt from GST and HST taxes, and just in general, because the home is older, you can often get a better price. There is also more room for negotiation when it comes to purchasing resale.
2. Move in ready
Resale houses are available to move in usually a month after purchasing, which is a huge advantage if you’re looking for a place to live immediately. Not having to wait for anything other than all the closing requirements lets you pack up your things and start making your new house feel like home right away.
3. Neighbourhoods with more character
Even though a newer neighbourhood is an advantage, so is living in an older neighbourhood — it all depends on your preferences! Older neighbourhoods often have wider streets that allow for more street parking, lots of taller, fuller trees, and older neighbourhoods tend to have all their landscaping done with larger yards, so visually there is a lot more character.
4. Established amenities
Older neighbourhoods have more established bus routes and school systems than some new communities, so if public transit is important to you, living in an older neighbourhood could be quite the advantage.
Disadvantages of Resale Homes
1. More risk
Whenever you buy an older home, you’re taking on an element of risk. You didn’t live there with the previous owner(s), so you don’t know exactly what was done to the home and how it was treated. If the previous owners didn’t follow a maintenance plan, if they did renovations that made things, in your eyes, worse not better, if the roof hasn’t been redone in twelve years, or if the furnace is incredibly old, these are all expensive things you’ll have to address in order to make your home both comfortable to live in and feel like your home.
2. Less environmentally friendly
Older homes weren’t built with energy efficiency and environmentally friendliness in mind. They wouldn’t be built with high efficiency windows, better plumbing or electrical, and other technologies that new houses have today.
3. No customization
New home designs are often built to optimize floorspace in a way that increases your usable space. Older homes for resale may not have those advantages, and can often have layouts that are dated or feel like they waste space. Other things like design and materials used are just “as is” when you purchase a resale home, if you want new granite countertops and hardwood floors, or a different paint colour with a resale home, that’s up to you to do after the fact.
4. No warranty
A major disadvantage of resale homes is the lack of warranty. If you close on a resale home and it passes inspection, you’re essentially on your own if something was missed. You would have home insurance in the case of damage from natural disasters, but if you need to replace something due to faulty construction or wear and tear, that is on you as the new homeowner.
Whether you choose a resale home or a new construction home, buying a house is an exciting investment! Make sure to figure out the best choice for you so that your new house becomes a great home.
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Lincolnberg Master Builder has been proudly building homes in Edmonton and area for over 41+ years. Looking for a new home? Explore our quick possession homes in South Edmonton, West Edmonton, North Edmonton, Leduc or Sherwood Park today!